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.
Grow your team in Denmark with Remote
Employing in Denmark requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in Denmark makes full compliance with employment laws a burdensome process.
Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.
Risks of misclassification
Denmark, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.
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.
Public holidays
| Date | Holiday Name | Extra information |
|---|---|---|
| New Year's Day | ||
| Epiphany | ||
| Maundy Thursday | ||
| Good Friday | ||
| Easter Sunday | ||
| Easter Monday | ||
| General Prayer Day | Store Bededag in Danish | |
| Ascension Day | ||
| Pentecost | ||
| Whit Monday | ||
| Danish Constitution Day | ||
| First Day of Christmas | ||
| Second Christmas Day |
- 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 instalments 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 48 hours.
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.
Competitive benefits package in Denmark
Besides providing your employees with all statutory benefits in Denmark, Remote can advise on and arrange for custom benefits and perks for your employees upon request.
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Supplementary private insurance
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Supplementary dental insurance
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Supplementary vision insurance
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Additional paid holidays
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Flexible work schedule
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Pension scheme
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Life insurance
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Other insurance
Taxes in Denmark
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Denmark.
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Employer
- 2,791 DKK - Employer's Reimbursement System (AUB)
- 2,272 DKK - Danish Labour Market Supplementary Pension Scheme (ATP)
- 1,176 DKK - Occupational injury insurance (Arbejdsskadeforsikring)
- 1,150 DKK - Maternity/paternity leave fund (Barselsfond)
- 592 DKK - Financing for ATP contributions for the unemployed (FIB)
- 299 DKK - Labour Market Insurance (AES)
- 12 DKK - Securing payment for foreign workers in Denmark (AFU)
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Employee
- 1,136 DKK - Danish Labour Market Supplementary Pension Scheme (ATP)
- 8% - All income from employment or self-employment (arbejdsmarkedsbidrag, also known as bruttoskat)
- 0% - Up to 46,200 (still subject to bruttoskat)
- 12.14% - 46,201 - 513,399
- 15% - Above 513,399
- 24.954% - All income, average municipal tax
Types of leave
- Statutory
leave All full-time workers are entitled to 5 weeks days paid holiday leave a year under the Holiday Act (Lov om ferie). Holidays accrue from the previous calendar year and can be taken in the holiday year which runs from 1 May to 30 April in the following year.
- Pregnancy and
maternity leave -
Expecting mothers are entitled to 4 weeks of pregnancy leave (before the due date) and at least 14 weeks maternity leave after childbirth. During the period of maternity leave, the mother receives 50% of their salary. However, employer and employee can agree to full pay entitlement.
- Paternal
leave Fathers are entitled to 2 weeks of paternity leave before the birth and 14 weeks after. There is no statutory right to salary, but the father may receive leave benefits from Danish authorities.
- Other
leave -
- Adoption leave: adoptive parents are entitled to 4 weeks of leave prior to receiving the child if the adoptive parents have to reside outside of Denmark to adopt. If the child is adopted in Denmark and it is necessary to reside where the place child is situation, one week's leave before adoption. In all cases of adoption, one of the adoptive parents are entitled to adoption leve of 14 weeks and the other with to leave with statutory benefits for 2 weeks. The remaining 12 weeks can be split between the adoptive parents.
- Parental leave: parents are entitled to 32 weeks leave with a possibility to extend to a maximum of 46 weeks. Leave pay is due for 32 weeks given relevant conditions are met.
- Accident, illness and family bereavement leave: meant for circumstances such as family sickness, accidents or bereavement. This type of leave is unpaid.
- Care leave (omsorgsdage): intended to allow employees to take care of a sick child. Not statutory required, but is common.
Employment
termination
Termination process
Termination of the employment relationship always have to be with written notice with proof that the notice has been received. Employees have been employed for at least one year at the time of the termination are protected against dismissal without just cause. Generally, collective bargaining agreements have the same protection, but after 9 months. Just causes include, but are not limited to:
- Change in employer's financial situation and reduction of staff;
- Restructuring of the company;
- Problems related to co-operation or trust in the employee;
- Employee's unfitness for the job; or
- Contract breach by the employee, for example in the case of serious misconduct or theft.
Notice period
The statutory notice period for an employer depends on the duration of employment:
- Less than 6 months: 1 month
- Between 6 months and 3 years: 3 months
- Between 3 and 6 years: 4 months
- Between 6 and 9 years: 5 months
- More than 9 years: 6 months
Probation periods
The maximum length of a probationary period is one month.
