Employer of Record & Payroll Services

Employing in Denmark

Employment law in Denmark is governed by statutory legislation and collective labour labour agreements. Denmark has a long tradition of allowing the conditions of employment and pay to be decided on through collective bargaining agreements. This means that there are just a few pieces of legislation that applies to all employers and employees, such as the Danish Salaried Employees Act (Funktionærloven and the Holiday Act (Lov om Ferie).

Almost all employment contracts in Denmark are governed by collective agreements. Danish employment law and collective agreements provides strong labor conditions and protections for employees, so employing people will be an important investment and commitment.

Temporary agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Denmark.

Minimum Wage

There is no statutory minimum wage in Denmark, but national collective bargaining agreements negotiated between workers' unions and employer associations effectively set minimum wages. The average effective hourly minimum salary across all private and public sectors is approximately 110 DKK.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Denmark fast. The minimum onboarding time we need is only 3 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

10 Public holidays

2025-01-01
2025-04-17
2025-04-18
2025-04-20
2025-04-21
2025-05-29
2025-06-08
2025-06-09
2025-12-25
2025-12-26

New Year's Day (Nytårsdag)
Maundy Thursday (Skærtorsdag)
Good Friday (Langfredag)
Easter (Påskedag)
Easter Monday (Anden påskedag)
Feast of the Ascension of Jesus Christ (Kristi himmelfartsdag)
Pentecost (Pinsedag)
Pentecost Monday (Anden pinsedag)
Christmas Day (Juledag)
Day after Christmas (Anden juledag)

Competitive benefits package in Denmark

Health Insurance

Dental Insurance

Vision Insurance

Mental health support

Pension or 401(K)

Life and Disability Insurance

Local market insights

In Denmark, 90%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)

Although the country has a robust public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. Our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.

Approximately 90%* of employers in Denmark also offer an occupational pension plan. (*based on 3rd-party market research from our partners)

The typical pension contribution in the market is 12% per employee per year. The percentage is calculated from the employee’s yearly base salary only.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in Denmark, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Facts & Stats

Denmark (Danish: Danmark), officially the Kingdom of Denmark (Danish: Kongeriget Danmark), is a Nordic country in Northern Europe. Denmark is considered to be one of the most economically and socially developed countries in the world. The country ranks as having the world's highest social mobility, a high level of income equality, the lowest perceived level of corruption in the world, the eleventh-highest HDI in the world, one of the world's highest per capita incomes, and one of the world's highest personal income tax rates.

Capital City

Copenhagen

Currency

Danish krone

Languages

Danish

Population size

5,824,857

Ease of doing business

Very easy

Payroll frequency

Monthly

VAT - standard rate

25%

Grow your team in Denmark with Remote

Want to employ workers in Denmark? Companies hiring in Denmark are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Denmark and keep you compliant. Remote can hire, onboard, and pay your Denmark team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Denmark. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

Denmark, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Denmark may lead to fines and penalties for the offending company.

Payroll

29

per employee/month

Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution

Contractor Management

29

per contractor/month

Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility

Employer of Record

699 599