Pension, a lunch scheme and health insurance already run through payroll. Now donations to charity can do the same. Payroll Giving is a simple scheme that gives employees a concrete way to act on their values – without creating extra administration for the payroll team.
Most companies have a catalogue of employee benefits. Some are used a lot. Others are forgotten once the contract is signed.
The question is no longer just what you offer. It's whether what you offer says something about who you are as a workplace, and whether employees themselves get a say.
The will to give is already there
The wish to make a difference is alive and well. Two out of three Danes supported an NGO in 2023, according to figures from Ipsos (in Danish). But that commitment often plays out privately – whether through a quick swipe on MobilePay, a standing bank transfer or a fundraiser on social media.
At the same time, we're seeing a shift in what employees expect from their workplace. Deloitte's Gen Z and Millennial Survey 2025 shows that 89% of Gen Z attach great importance to a sense of purpose for their job satisfaction and well-being. In other words, presenting fine visions is no longer enough – employees also want the chance to contribute themselves to initiatives that create change.
So the will to contribute is already there. The company's task is to create a simple framework in which each person can turn their own values into action.
What is Payroll Giving?
Payroll Giving means that employees can voluntarily donate an amount of their choice to charity directly through their pay.
The employee decides:
- Whether to take part
- How much to donate
- Which causes to support
- Whether it's a fixed monthly donation or a one-off
The model isn't new. In the UK, £131 million was donated through Payroll Giving in the 2024/25 tax year, according to HMRC’s official statistics. In Australia, more than 6,000 employers have a workplace giving scheme that 4.7 million employees have access to (AIHW).
In Denmark, there have so far been fewer ways to make donations an integrated part of payroll administration.
Why the payslip?
Because that's where many other employee benefits are already handled. The donation is registered as a payroll item, just like a canteen scheme and other deductions.
When the donation happens automatically with the pay, the employee doesn't have to remember to transfer the money every month. That makes regular giving easier.
For the payroll department, it's essential that the scheme doesn't become yet another administrative task. That's why it matters that donations can be handled as part of the existing payroll process.
Does it create extra work for payroll? That depends on the solution you choose. With an integration to the company's payroll system, much of the administration can be automated, so the payroll department mainly handles approval and any changes.
Does the company have to donate? No. Payroll Giving can be used entirely without a company budget. But the company can choose to top up the employees' contributions, for example by matching their donations.
Simple in practice. Greater in value.
For the company
- A modern employee benefit that can strengthen your Employee Value Proposition
- A concrete way to show that employees' values matter
- Influence and ownership instead of decisions made in the boardroom
For the employee
- A free choice of amount and cause
- A way to contribute to charitable causes through the workplace
- One overview of their own donations and any tax deductions
And then there's tax. Donations to organisations approved under section 8 A of the Danish Tax Assessment Act are deductible – up to DKK 20,000 in 2026, according to the Danish Tax Agency (in Danish).
The deduction is worth about 26%. If an employee donates DKK 1,000, the real cost is therefore around DKK 740, while the organisation receives the full amount.
To get the deduction, the approved organisation must report the employee's CPR number to the Danish Tax Agency. That requires the organisation to receive the necessary information, and the personal data to be handled correctly.
Payroll Giving with Actnation and Zenegy
With the integration between Actnation and Zenegy, companies can easily offer Payroll Giving as part of their existing payroll administration.
Employees choose for themselves which causes to support, while employee data is transferred automatically between the systems. The donations are approved directly in Zenegy, and the payment to the organisations can be handled through Mastercard Overførselsservice.
Want to see how it works in practice?
Watch the webinar The employee benefit of the future starts on the payslip (in Danish), where we go through Payroll Giving, tax deductions and the integration between Actnation and Zenegy.
