Local salary pools in organisations subject to the standard collective agreement

As the possibility of local salary pools is part of the overall outcome of collective agreement negotiations, it is not a matter of some having to finance the pay increases of others. Salary pools are part of the overall result and have impacted the financial salary framework, according to which the general pay increase for the duration of the collective agreement is 8.2 per cent, of which 1 per cent is negotiable for local salary pools in 2024. Had we not agreed on financing for salary pools, the pay increases might have been different than they are today.

Experience shows the importance of embedding salary principles in a local agreement. This ensures that the negotiations on principles for the distribution of the salary pool are based on local needs of the employees and the company.

Local salary pools provide the individual employee with the opportunity to discuss pay with his or her manager. Local salary pools and local salary principles ensure that the salary review has real substance, and that a manager will not be able to simply reject the prospect of an employee ever receiving an individual pay adjustment. At the same time, the salary principles allow for more transparent distribution of the pooled funds. 

That’s a question for either the head of local union or your manager. Companies are free to choose whether they want to have salary pools or not, and Finansforbundet has yet to obtain an overview of which companies are discussing local salary pools and salary principles.

The salary pool’s exact amount in kroner depends on the payroll of the company. According to the collective agreement, the salary pool has been agreed to constitute between 0 per cent and 1 per cent of the payroll in 2024. The company may, however, choose to supplement the pool with its own funds.

Local union representatives have been encouraged to listen to the members and participate in the negotiations on salary pools in the companies for the purpose of finding a good local solution.  If it proves impossible to reach an agreement that satisfies both parties, it has been agreed that the Danish Employers’ Association for the Financial Sector (FA) and Finansforbundet will act as mediators. The members of Finansforbundet who are working at the company will be balloted on the proposed settlement resulting from the conciliation process.

The salary pool money may only be spent on adjustment of the pay of employees covered by the collective agreement. This means it may not be spent on one-time allowances, pension contributions, holidays, etc.

Usually not. You may see it only if it has been agreed locally, or if pay is transparent at your workplace.

The collective agreement entitles you to an annual salary review, at which you can discuss pay with your manager. Therefore, make sure to book a salary review in your diary.

If a local salary pool is agreed for your company, certain local salary principles will also have been agreed. The possibility of a pay increase thus depends on the agreements concluded in your particular company. Contact the head of local union who knows more about your local agreements.

The FA and Finansforbundet have not established such rules, but a local framework may have been agreed. Ask your head of local union.

Companies must document the application of the pool, just as it may have been agreed locally that statistics are required to be prepared to show that the pool has been spent. If it turns out that the entire pool has not been spent, the remaining amount will either be distributed between everybody or to individual employees.

As salary principles are agreed locally, contact your head of local union who knows more about them.

If your company and the head of local union agree on the distribution of the local salary pool and salary principles, you as an employee or manager of the company will be informed of the agreement. Please ask the head of local union about what is taking place at your company in relation to local pay.