The Financial Framework and General Pay Increases

The total financial framework for the three years the collective agreement covers is 8.1 percent, which means that our area will be 8.1 percent more expensive up until March 31, 2021.

However, it does not mean that your salary will increase by 8.1 percent.

The central pay increase
In the coming collective agreement period, you will be guaranteed a pay increase of 5.6 percent. In the table below, you can see when the pay increases and by how much. You can see this in the row “general pay increase”.

In addition, the economists expect that your salary will be regulated by up to 0.47 percent due to the regulation mechanism. The economists have already calculated that the salaries must be regulated by plus 0.33 percent effective as of April 1, however, the last 0.14 percent are estimated, and the result depends on how the salaries develop in the private and public labour markets. You can see what the economists expect in the row that describes the regulation mechanism.

If things go as the economists expect, you will get a centrally agreed pay increase of 6.07 percent (5.6 and 0.47 from the regulation mechanism).

The regulation mechanism
The regulation mechanism remains the same without the so-called “private salary protection”. In other words, in the agreement the regulation mechanism is symmetrical (80/80) in the same way as before OK ´15.

This means that if the salaries in the private sector increase by 1 Danish kroner more than in the state sector, the salaries in the state sector will be regulated up by 0.8 Danish kroner. If the salaries in the state sector increase by 1 Danish kroner more than in the private sector, the salaries in the state sector will be regulated down by 0.8 Danish kroner.

In the recently concluded collective agreement, the salaries were regulated down by the full amount if the salaries in the state sector increased more than the salaries in the private sector.

The funds
As mentioned, the Teachers' Union for Danish Independent Schools and the Agency for Modernisation (“Moderniseringsstyrelsen”) will soon start negotiations about the union's resources. 0.23 percent (approx. 15 million Danish kroner) have been allocated for the union negotiations.

The union negotiations may for instance be used to improve the current salary system at the independent schools.

Project funds
In addition, 0.30 percent of the financial framework have been allocated for different funds. The funds will finance for instance improvement of group life insurance, a considerable pay increase for apprentices and trainees as well as the right to paid leave of absence for up to five days per child per year for employees whose children are in outpatient care which replaces hospitalisation and requires the presence of the employee. Furthermore, employees have the right to unpaid leave of absence if an employee has been hired by the local authorities, according to the Danish Consolidation Act on Social Services, to care for a closely related family member in her/his home. In addition, employees who have been dismissed because of matters related to the school (for instance financial problems) have the right to two hours of paid leave of absence to attend a meeting with their unemployment insurance fund.

Residual increase
Finally, there is a calculated residual increase of 1.5 percent. The residual increase has been calculated as the difference between the centrally agreed increases (5.6 + 0.47 + 0.23 + 0.30 = 6.6) and the expected development in the financial framework (8.1).

The residual increase mainly comes from the decentralised salary development.

The table below shows the implementation profile.