Denmark

Denmark, a Scandinavian country known for its high standard of living, strong social welfare system, and excellent work-life balance, is a top destination for global companies looking to build remote or distributed teams in Europe. As an EU member and part of the Schengen Area, Denmark combines economic stability with a flexible labor market regulated through collective agreements rather than rigid employment laws.
Contractor Management
Payroll
Currency
Danish krone (DKK)
Payroll Frequency
Monthly
Employer Taxes
12.4%

Overview

Population
~5.9 million
Language
Danish
Capital
Copenhagen
Currency
Danish krone (DKK)
Country code
+45
Min wage
No statutory minimum wage; wages are set through collective bargaining agreements (typically DKK 110–130/hour)
Working hours
8 or 9 am to 4 or 5 pm
Weekdays
Monday to Friday
Work hours per week
37 hours

Payroll

Salaried Employees
Monthly, usually paid on the last working day of the month
Time-Based Employees
13th Salary
Avg employer tax

~10%–12% of gross salary

Tax Breakdown

ATP (Labor Market Supplementary Pension)
Fixed amount (approx. DKK 284/month)
Occupational injury insurance
Varies by sector
Other employer obligations
May apply under collective agreements

Employee Contributions:

Income Tax
Progressive up to ~52% (includes state, municipal, and church tax)
Labor Market Contribution (AM-bidrag)
8% (flat rate, deducted before income tax)

VAT

VAT

Standard rate of 25% on goods and services

Tax Calculation for Denmark
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Denmark typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be provided in writing before or shortly after employment begins
  • Must include job title, duties, salary, work hours, holidays, notice period, and applicable agreements

Tax and Social Registration

  • Employee must have a CPR number (civil registration number)
  • Employer must register the employee with eIndkomst (income reporting system)
  • Ensure tax card is obtained and applied correctly

Bank and Payroll Setup

  • Set up a local bank account for salary payments
  • Register the employee for NemKonto and e-Boks for digital payslips and official communications

Work Permits (for non-EU employees)

  • Required and issued through SIRI (Danish Agency for International Recruitment and Integration)
  • Most non-EU nationals must qualify under schemes like the Positive List or Pay Limit Scheme

Orientation and Benefits Enrollment

  • Introduce workplace culture, health and safety procedures, and job responsibilities
  • Enroll employee in any optional pension plans, meal vouchers, or wellness schemes

Probation Check-ins

  • Schedule regular performance reviews during the probation period
  • Provide written feedback and expectations

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Denmark
When drafting an employment contract for employees in Denmark, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • First 30 days paid by the employer at full salary (longer in many collective agreements)
  • After 30 days, the municipality may reimburse a portion of the sick pay
  • Medical documentation may be requested
Maternity leave
  • Pregnant employees are entitled to 4 weeks before and 14 weeks after childbirth
  • Employers often continue salary payments, with reimbursement from the state
  • Collective agreements may extend this period and top up benefits

Paternity leave
  • Fathers or co-parents are entitled to 2 weeks paid leave within the first 10 weeks
  • Additional parental leave can be shared

Parental Leave:

  • Parents can share up to 32 weeks of paid leave (can be extended with reduced benefits)
  • Benefits are provided by the state (Udbetaling Danmark), with caps
Annual Leave
  • Employees are entitled to 5 weeks (25 working days) of paid vacation annually
  • Accrual follows the "concurrent holiday" system: 2.08 days earned per month of work
  • Additional “feriefridage” (special holidays) may be granted through union agreements
11 Public holidays in Denmark

Note: Many holidays are negotiated as part of collective agreements. Constitution Day and May Day are not official public holidays but are often observed.

1st
New Year’s Day
28th
Maundy Thursday
29th
Good Friday
31st
Easter
1st
Easter
1st
Labor Day (optional holiday)
9th
Ascension Day
19th
Whit Monday
5th
Constitution Day (optional holiday)
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 14 Apr: Maundy Thursday
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 18 Apr: Easter Monday
  • 13 May: Prayer Day
  • 26 May: Ascension Day
  • 5 Jun: Whit Sunday
  • 6 Jun: Whit Monday
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

Termination Process

Grounds for Termination

  • Danish labor law allows for termination with notice for valid business or performance reasons
  • Dismissals must follow non-discrimination laws and be fair under collective agreement norms

Notice Period

  • Based on tenure:
    • 0–6 months: 1 month
    • 6 months–3 years: 3 months
    • 3–6 years: 4 months
    • 6–9 years: 5 months
    • 9+ years: 6 months
  • Applies to white-collar employees under the Danish Salaried Employees Act

Severance Pay

  • Not required unless covered by a collective agreement or specific contract
  • Salaried employees may be entitled to compensation after 12+ years of service (up to 3 months' salary)

Probation Period

  • Up to 3 months
  • During this time, notice can be as short as 14 days

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Denmark
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Denmark.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hiring in Denmark | Payroll, Tax & Employment Guide

Denmark's highly skilled workforce speaks excellent English, brings strong innovation culture and the #1 ranking for ease of doing business in Europe. 

RemotePass makes hiring in Denmark simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key Takeaways for Hiring in Denmark

  • Denmark has no statutory minimum wage. Pay is governed by collective agreements
  • Employers must pay a minimum of 1% of annual salary as holiday allowance (ferietillæg), with many offering up to 3%
  • Employees get 100% salary during sick leave with no duration limit (after meeting eligibility requirements)
  • Notice periods range from one month to six months based on length of service

Quick Facts For Hiring In Denmark

Continent
Europe
Capital
Copenhagen
Currency
Danish Krone (DKK)
Language
Danish
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Denmark Employment Contract Overview

Contract Type
Fixed-term / Open-ended
Local Language Required?
No
Bilingual?
No
Probation Period
Under the Danish Salaried Employees Act (Funktionærloven), the maximum probation period is three months and must be stated in writing in the employment contract to be valid.
Minimum Paid Time Off
25 days
Public Holidays
10 public holidays
Notice Period
Less than six months of service: one month's notice
≥ six months – less than three years: three months' notice
Three to six years: four months' notice
Six to nine years: five months' notice
Nine+ years: six months' notice

What Do You Need To Include In A Danish Employment Contract?

Make sure your contracts include all of these to comply with Danish labor law:

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Denmark?

Denmark doesn't impose general percentage-based social security taxes on employers. Instead, you pay several fixed or small percentage-based contributions. Understanding holiday pay accrual and the Labour Market Contribution helps you budget accurately.

Payroll Setup

Salary currency

Danish Krone (DKK)

Minimum Wage

Danish legislation doesn't establish a statutory minimum wage.

Hours per Week

The standard work week is typically 37 hours, usually spread across Monday to Friday, often around 7.4 hours per day

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

13th-month bonus isn't mandated in Denmark.

Under Danish Holiday Act (Ferieloven), employers must pay a minimum of 1% of the employee's annual salary as ferietillæg. It's often paid annually in April/May, or proportionally when the employee takes vacation days. While 1% is the legal minimum, many collective agreements (overenskomster) or private employers offer up to 3% or even more.

Gross Salary Structure

Gross salary doesn't follow a standardized structure in Denmark.

What Payroll Taxes Do Employers Pay in Denmark?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

ATP (Labour Market Supplementary Pension):

DKK ~2,272/year

AUB (Apprenticeship Scheme):

DKK ~2,791/year

Occupational Injury Insurance (AES) and Work-Related Disease Funds:

DKK ~215-5,157/year, depending on industry risk

Maternity/Paternity Leave Fund (Barsel.dk/FIP):

Approximately DKK 1,350/year

Financing contributions or guarantee fund:

DKK ~592/year for financing ATP during unemployment, sickness, or maternity (FIB)

Holiday Pay (Feriekonto or internal):

Employers must accrue 12.5% of salary for holiday pay or manage it via the state fund

Other small funds:

  • AFU (Foreign Workers Guarantee Fund): ~DKK 48/year

  • Holiday administration fees: small amounts (~DKK 22-72/year)

What Payroll Taxes Do Employees Pay in Denmark?

Individual Income Tax

Please see the table below.

Social Contributions


Total:

19% + DKK 1,136

Labour Market Contribution (AM-bidrag):

8% of gross salary, deducted before income taxes

ATP (Labour Market Supplementary Pension):

Fixed yearly amount of approximately DKK 1,136

Occupational Pensions (via collective agreements):

Typically 9-17% of salary; average about 11%, with employees contributing around one-third

Summary Table (Ordinary Scheme, 2025)

Component Rate or Threshold
AM-bidrag (pre-tax)

8%

State bottom tax

12.01% (on personal income)

State top tax

+15% (on income above DKK 611,800 after AM)

Municipal tax (avg.)

~25.07%

Church tax (if applicable)

~0.64%

Maximum marginal rate

~52.07% (ex-AM), ~55.9% (incl. AM)

Hiring cost calculator 

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DK
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Thank you! Your submission has been received!
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Employee Benefits and Mobility in Denmark

Employment of expats is supported in Denmark.

Benefits Provider Funded Through Notes
Pension / Social Security Government

Payroll Contributions & Taxation

ATP (Labour Market Supplementary Pension): A mandatory pension scheme applies to those working over nine hours/week.

Occupational (Supplementary) Pensions: In practice, most employees participate in occupational pension schemes, but these are mandated through collective bargaining agreements, not statutory law.

Public (State) Pensions: Funded entirely by taxation, these include universal old-age pension paid after reaching retirement age and a supplementary pension based on residency history.

Other Statutory Benefits Government & Employer

Payroll Contributions & Additional Cost

Occupational Accident Insurance

Unemployment Insurance (A-kasse)

Holiday Pay (Feriekonto)

Leave And Holiday Entitlement In Denmark

Annual leave

Employees are entitled to 25 days of annual leave each year, accruing 2.08 days of leave for every month of completed work. The statutory annual leave system follows a holiday year (ferieår) running from September 1 to August 31.

Public holidays

Denmark observes 10 public holidays:

  • January 1 – New Year's Day

  • Maundy Thursday

  • Good Friday

  • Easter Sunday

  • Easter Monday

  • Ascension Day

  • Whitsun

  • Whit Monday (Pentecost Monday)

  • December 25 – Christmas Day

  • December 26 – Boxing Day

Sick Leave

You pay 100% of salary (including bonuses) with no duration limit, if:

  • Days one to three: Usually unpaid (some employers may choose to pay).

  • Employee has worked at least 240 hours in the past six months, and

  • At least 40 hours in five of the last six months

After 120 days of continuous illness, you may terminate with one-month notice. A medical certificate is required after 14 days of sick leave.

Maternity Leave

Maternity leave consists of 14 weeks, which includes up to four weeks before the expected due date. During this period, you typically pay 50% of the employee's salary for up to five months, and this amount can later be reimbursed by the Danish Maternity Fund.

Employees are required to notify you at least three months before the expected birth date.

An additional 13 weeks of leave is granted to employees who have two or more live-born children in the same birth. This also applies to both parents in cases of adoption of twins or more, provided the children are under one year of age at the time of adoption.

Applications for maternity and paternity benefits must be submitted through Udbetaling Danmark, which manages disbursements from the maternity fund.

Paternity Leave

Biological fathers and employees who are legal, but not biological, parents of a child—regardless of gender—are entitled to two weeks of paternity leave, which can be taken consecutively or separately within 14 weeks following the birth. They're also entitled to an additional 32 weeks of parental leave, which can be shared with the other parent.

Other Types of Leave

  • Parental Leave: Single parents are entitled to 46 weeks of parental leave and may transfer a portion to a close family member, such as a sibling or grandparent. In LGBT+ families, parental leave may be shared with "social parents," including a legal parent's spouse, a cohabiting partner, or the spouse of a known donor.

  • Parents of Twins Leave: Each parent of twins is granted an additional 13 weeks of parental leave following the birth or adoption of twins. This extra leave must be used within one year of the event.

  • Adoption Leave: Adoptive parents are entitled to a total of 32 weeks of leave, which may be divided equally between them. When adopting a child from abroad, both parents are eligible for up to four weeks of paid leave before receiving the child. This pre-adoption leave can be extended by an additional four weeks if the reception is delayed for reasons beyond the adoptive parents' control. After the child is received, the parents are entitled to 14 weeks of paid leave, which may be shared between them; however, only one parent may be on leave at a time during this period.

  • Bereavement Leave: Parents who lose a child under the age of 18 are entitled to 26 weeks of paid bereavement leave.

  • Compassionate Leave: Employees may take unpaid leave if their immediate presence is urgently required due to a serious illness or accident affecting a close relative.

Termination and Offboarding in Denmark

Terminating employment in Denmark requires written notice, clear documentation, and adherence to statutory notice periods based on tenure. Here's how to handle each scenario compliantly.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Denmark Employee Resignation

Notice

Form

Notice of resignation must be given in writing to you by the employee. Oral notice isn't considered legally valid.

Notice period

The statutory notice period for employees is typically one month, unless otherwise agreed in the employment contract or collective agreement.

Payment in lieu of notice or notice waiver

Payment in lieu of notice (paying the employee for the notice period without requiring work) isn't common or explicitly regulated but may be agreed upon contractually or by mutual consent.

End-of-Service Benefits

Severance/Gratuity

No statutory severance pay is mandated under Danish law for employee resignation. Severance may apply if agreed in contract or collective agreements, but it's not a legal requirement upon voluntary resignation.

Other Benefits

Employees are entitled to accrued but unused holiday pay and any other earned benefits as per contract or collective agreements.

Termination Documentation

You must provide a written confirmation of termination/resignation if requested by the employee.

Employer Termination With Cause in Denmark

Acceptable grounds

Termination with cause can only occur if the employee has committed a serious breach of contract or misconduct. Examples include gross negligence, theft, fraud, repeated breaches of company rules, or other significant violations.

The grounds must be well-documented and substantiated. You should consider if lesser disciplinary measures are appropriate before immediate dismissal. Termination must be justified and proportionate.

Notice

Form

Termination with cause must be communicated in writing to the employee, specifying the reasons for dismissal.

Notice period

Termination with cause typically allows for immediate dismissal without any notice period.

Payment in lieu of notice or notice waiver

Since notice can be immediate, payment in lieu of notice generally isn't required.

End-of-Service Benefits

Severance

There's no statutory severance pay required for termination with cause. Severance may be agreed upon in contracts or collective agreements but usually isn't paid in cases of termination with cause.

Other Benefits

Employees are entitled to payment for accrued but unused holiday leave. Other earned benefits must be paid according to contract or collective agreements.

Termination Documentation

You must provide a written termination letter stating the reasons for dismissal.

Employer Termination Without Cause in Denmark

Acceptable Grounds

Termination without cause can be done for reasons such as business restructuring, redundancy, or other operational reasons. You don't need to prove employee fault but must comply with notice periods and fair procedures. Terminations mustn't be discriminatory or in violation of protected rights (e.g., pregnancy, union activity).

Form

Notice of termination must be given in writing to the employee.

Notice period

Statutory notice periods depend on the employee's length of service:

  • Up to six months of employment: one month notice

  • Six months to three years: three months notice

  • Three to six years: four months notice

  • Six to nine years: five months notice

  • Nine to 12 years: six months notice

  • More than 12 years: six months notice

(Notice periods can be extended by contract or collective agreement.)

Payment in lieu of notice or notice waiver

You may agree to pay salary instead of requiring the employee to work the notice period, but this must be agreed upon.

End-of-Service Benefits

Severance

There's no statutory severance pay for termination without cause in Denmark. Severance pay may be included in collective agreements or employment contracts.

Other Benefits

Employees are entitled to payment for accrued but unused holiday leave. Other contractual or collectively agreed benefits must also be paid.

Termination Documentation

You must provide a written termination letter stating the notice period and reason for termination if requested.

Mutual Termination Agreements in Denmark

Notice

Form

The agreement must be documented in writing, clearly stating the terms of termination.

Notice period

Notice periods can be negotiated between the parties and may differ from statutory notice periods if both agree.

Waiver of notice

The parties may agree on payment in lieu of notice or waive notice periods entirely as part of the agreement.

End-of-Service Benefits

Severance

Severance payments may be agreed upon in the mutual termination agreement but aren't mandated by law. Any agreed severance should be clearly detailed in the agreement.

Other Benefits

Payment for accrued but unused holiday leave is mandatory. Other benefits may be included in the agreement if negotiated.

Termination Documentation

A written mutual termination agreement signed by both parties is essential to document the terms and avoid disputes. The agreement should include details such as final working day, payments, and any other agreed conditions.

Offboarding Process for the End of Fixed-term Contracts in Denmark

If the Fixed-Term Contract Ends Normally

Notice

Fixed-term contracts automatically expire on the agreed end date without the need for notice unless otherwise specified in the contract. If the contract is to be renewed or extended, parties should notify each other as agreed in the contract or collective agreements.

If the employee continues working after the fixed term without a new agreement, it may convert to an indefinite contract, requiring notice periods under normal rules.

End-of-Service Benefits

Severance/Gratuity

Danish law doesn't mandate severance pay or gratuity for the normal expiration of a fixed-term contract. Any severance would depend on terms agreed in the contract or collective bargaining agreements (if applicable).

Other Benefits

The employee is entitled to all earned salary, unused vacation pay (vacation allowance), and any other contractual benefits. Danish holiday law requires that accrued vacation pay must be paid out if the contract ends. No additional compensation is generally due at the normal end of a fixed-term contract.

If the Employer Terminates Early

Notice

Early termination of a fixed-term contract by you is generally not allowed unless the contract explicitly allows it. If early termination is permitted, you must comply with the notice period specified in the contract or collective agreement.

If no early termination clause exists, ending the contract prematurely may be a breach of contract and could lead to claims for damages.

Notice periods for indefinite contracts under the Danish Salaried Employees Act (Funktionærloven) range from one to six months depending on length of employment, but these don't automatically apply to fixed-term contracts unless the contract converts.

End-of-Service Benefits

Severance/Gratuity

No statutory severance is required under Danish law for early termination of fixed-term contracts. Severance pay may be due if stated in the contract or collective agreement, or in cases of unlawful dismissal.

Other Benefits

The employee is entitled to salary for the notice period (if applicable). The employee must be paid for all accrued and unused vacation allowance. If termination is unlawful, the employee may have the right to compensation or damages.

Final Payment Timing & Immigration and Visa Compliance in Denmark

Final Payment Deadline

Salary and accrued benefits (e.g., unused vacation pay) must be paid no later than the next regular payday after termination.

Penalty

Failure to pay final salary on time may result in interest penalties and potential legal claims by the employee.

Visa and Immigration Compliance

Employees with work or residence permits must comply with Danish immigration rules upon resignation or termination. You must notify the Danish Immigration Service if the employee loses their job, which may affect the employee's right to remain in Denmark. Employees are responsible for applying for new permits or extensions if applicable.

Key Elements of an Employment Contract in Denmark
When drafting an employment contract for employees in Denmark, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Hire in Denmark Without the Hassle

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Denmark.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Denmark

Got Questions? Find Answers Here

Is there a minimum wage in Denmark?

No. Denmark doesn't have a statutory minimum wage. Pay is governed by collective agreements (overenskomster) negotiated between unions and employer organizations. These agreements set sector-specific minimum wages and conditions.

How much holiday allowance must I pay?

At minimum, 1% of the employee's annual salary as ferietillæg (holiday allowance). This is often paid annually in April/May or proportionally when employees take vacation days. Many collective agreements or employers offer up to 3% or more.

How long do employees get full sick pay?

Indefinitely, with no duration cap. Employees get 100% of salary (including bonuses) if they've worked at least 240 hours in the past six months and at least 40 hours in five of the last six months. After 120 days of continuous illness, you may terminate with one-month notice.

Can I terminate a fixed-term contract early?

Generally no, unless the contract explicitly allows it. If no early termination clause exists, ending the contract prematurely may be a breach of contract and could lead to claims for damages.

What's the holiday year (ferieår)?

The statutory annual leave system follows a holiday year running from September 1 to August 31. Employees accrue 2.08 days of leave for every month of completed work.

How much notice is required for termination?

For employees: typically one month (unless otherwise agreed). For employers: depends on employee's length of service, ranging from one month (under six months service) to six months (nine+ years service).

Do I need to reimburse maternity pay?

During maternity leave, you typically pay 50% of the employee's salary for up to five months, and this amount can later be reimbursed by the Danish Maternity Fund. Applications must be submitted through Udbetaling Danmark.

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Denmark

Denmark, a Scandinavian country known for its high standard of living, strong social welfare system, and excellent work-life balance, is a top destination for global companies looking to build remote or distributed teams in Europe. As an EU member and part of the Schengen Area, Denmark combines economic stability with a flexible labor market regulated through collective agreements rather than rigid employment laws.
Contractor Management
Payroll
العملة
Danish krone (DKK)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
12.4%

نظرة عامة

التركيبة السكانية
~5.9 million
اللغة
Danish
العاصمة
Copenhagen
العملة
Danish krone (DKK)
رمز الاتصال الدولي
+45
الحد الأدنى للأجور
No statutory minimum wage; wages are set through collective bargaining agreements (typically DKK 110–130/hour)
ساعات العمل
8 or 9 am to 4 or 5 pm
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
37 hours

الرواتب

الموظفون برواتب ثابتة
Monthly, usually paid on the last working day of the month
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

~10%–12% of gross salary

تحصيل الضرائب

ATP (Labor Market Supplementary Pension)
Fixed amount (approx. DKK 284/month)
Occupational injury insurance
Varies by sector
Other employer obligations
May apply under collective agreements

Employee Contributions:

Income Tax
Progressive up to ~52% (includes state, municipal, and church tax)
Labor Market Contribution (AM-bidrag)
8% (flat rate, deducted before income tax)

ضريبة القيمة المضافة

ضريبة القيمة المضافة

Standard rate of 25% on goods and services

حساب الضريبة في Denmark
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Denmark عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

  • Must be provided in writing before or shortly after employment begins
  • Must include job title, duties, salary, work hours, holidays, notice period, and applicable agreements

Tax and Social Registration

  • Employee must have a CPR number (civil registration number)
  • Employer must register the employee with eIndkomst (income reporting system)
  • Ensure tax card is obtained and applied correctly

Bank and Payroll Setup

  • Set up a local bank account for salary payments
  • Register the employee for NemKonto and e-Boks for digital payslips and official communications

Work Permits (for non-EU employees)

  • Required and issued through SIRI (Danish Agency for International Recruitment and Integration)
  • Most non-EU nationals must qualify under schemes like the Positive List or Pay Limit Scheme

Orientation and Benefits Enrollment

  • Introduce workplace culture, health and safety procedures, and job responsibilities
  • Enroll employee in any optional pension plans, meal vouchers, or wellness schemes

Probation Check-ins

  • Schedule regular performance reviews during the probation period
  • Provide written feedback and expectations

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Denmark
عند إعداد عقد عمل للموظفين في Denmark يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • First 30 days paid by the employer at full salary (longer in many collective agreements)
  • After 30 days, the municipality may reimburse a portion of the sick pay
  • Medical documentation may be requested
إجازة الأمومة
  • Pregnant employees are entitled to 4 weeks before and 14 weeks after childbirth
  • Employers often continue salary payments, with reimbursement from the state
  • Collective agreements may extend this period and top up benefits

إجازة الأبوة
  • Fathers or co-parents are entitled to 2 weeks paid leave within the first 10 weeks
  • Additional parental leave can be shared

Parental Leave:

  • Parents can share up to 32 weeks of paid leave (can be extended with reduced benefits)
  • Benefits are provided by the state (Udbetaling Danmark), with caps
الإجازة السنوية
  • Employees are entitled to 5 weeks (25 working days) of paid vacation annually
  • Accrual follows the "concurrent holiday" system: 2.08 days earned per month of work
  • Additional “feriefridage” (special holidays) may be granted through union agreements
11 عطلات رسمية في Denmark

Note: Many holidays are negotiated as part of collective agreements. Constitution Day and May Day are not official public holidays but are often observed.

1st
New Year’s Day
28th
Maundy Thursday
29th
Good Friday
31st
Easter
1st
Easter
1st
Labor Day (optional holiday)
9th
Ascension Day
19th
Whit Monday
5th
Constitution Day (optional holiday)
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 14 Apr: Maundy Thursday
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 18 Apr: Easter Monday
  • 13 May: Prayer Day
  • 26 May: Ascension Day
  • 5 Jun: Whit Sunday
  • 6 Jun: Whit Monday
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

عملية إنهاء العقود

Grounds for Termination

  • Danish labor law allows for termination with notice for valid business or performance reasons
  • Dismissals must follow non-discrimination laws and be fair under collective agreement norms

Notice Period

  • Based on tenure:
    • 0–6 months: 1 month
    • 6 months–3 years: 3 months
    • 3–6 years: 4 months
    • 6–9 years: 5 months
    • 9+ years: 6 months
  • Applies to white-collar employees under the Danish Salaried Employees Act

Severance Pay

  • Not required unless covered by a collective agreement or specific contract
  • Salaried employees may be entitled to compensation after 12+ years of service (up to 3 months' salary)

Probation Period

  • Up to 3 months
  • During this time, notice can be as short as 14 days

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Denmark
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Denmark.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring in Denmark | Payroll, Tax & Employment Guide

Denmark's highly skilled workforce speaks excellent English, brings strong innovation culture and the #1 ranking for ease of doing business in Europe. 

RemotePass makes hiring in Denmark simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key Takeaways for Hiring in Denmark

  • Denmark has no statutory minimum wage. Pay is governed by collective agreements
  • Employers must pay a minimum of 1% of annual salary as holiday allowance (ferietillæg), with many offering up to 3%
  • Employees get 100% salary during sick leave with no duration limit (after meeting eligibility requirements)
  • Notice periods range from one month to six months based on length of service

Quick Facts For Hiring In Denmark

Continent
Europe
Capital
Copenhagen
Currency
Danish Krone (DKK)
Language
Danish
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Denmark Employment Contract Overview

Contract Type
Fixed-term / Open-ended
Local Language Required?
No
Bilingual?
No
Probation Period
Under the Danish Salaried Employees Act (Funktionærloven), the maximum probation period is three months and must be stated in writing in the employment contract to be valid.
Minimum Paid Time Off
25 days
Public Holidays
10 public holidays
Notice Period
Less than six months of service: one month's notice
≥ six months – less than three years: three months' notice
Three to six years: four months' notice
Six to nine years: five months' notice
Nine+ years: six months' notice

What Do You Need To Include In A Danish Employment Contract?

Make sure your contracts include all of these to comply with Danish labor law:

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Denmark?

Denmark doesn't impose general percentage-based social security taxes on employers. Instead, you pay several fixed or small percentage-based contributions. Understanding holiday pay accrual and the Labour Market Contribution helps you budget accurately.

Payroll Setup

Salary currency

Danish Krone (DKK)

Minimum Wage

Danish legislation doesn't establish a statutory minimum wage.

Hours per Week

The standard work week is typically 37 hours, usually spread across Monday to Friday, often around 7.4 hours per day

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

13th-month bonus isn't mandated in Denmark.

Under Danish Holiday Act (Ferieloven), employers must pay a minimum of 1% of the employee's annual salary as ferietillæg. It's often paid annually in April/May, or proportionally when the employee takes vacation days. While 1% is the legal minimum, many collective agreements (overenskomster) or private employers offer up to 3% or even more.

Gross Salary Structure

Gross salary doesn't follow a standardized structure in Denmark.

What Payroll Taxes Do Employers Pay in Denmark?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

ATP (Labour Market Supplementary Pension):

DKK ~2,272/year

AUB (Apprenticeship Scheme):

DKK ~2,791/year

Occupational Injury Insurance (AES) and Work-Related Disease Funds:

DKK ~215-5,157/year, depending on industry risk

Maternity/Paternity Leave Fund (Barsel.dk/FIP):

Approximately DKK 1,350/year

Financing contributions or guarantee fund:

DKK ~592/year for financing ATP during unemployment, sickness, or maternity (FIB)

Holiday Pay (Feriekonto or internal):

Employers must accrue 12.5% of salary for holiday pay or manage it via the state fund

Other small funds:

  • AFU (Foreign Workers Guarantee Fund): ~DKK 48/year

  • Holiday administration fees: small amounts (~DKK 22-72/year)

What Payroll Taxes Do Employees Pay in Denmark?

Individual Income Tax

Please see the table below.

Social Contributions


Total:

19% + DKK 1,136

Labour Market Contribution (AM-bidrag):

8% of gross salary, deducted before income taxes

ATP (Labour Market Supplementary Pension):

Fixed yearly amount of approximately DKK 1,136

Occupational Pensions (via collective agreements):

Typically 9-17% of salary; average about 11%, with employees contributing around one-third

Summary Table (Ordinary Scheme, 2025)

Component Rate or Threshold
AM-bidrag (pre-tax)

8%

State bottom tax

12.01% (on personal income)

State top tax

+15% (on income above DKK 611,800 after AM)

Municipal tax (avg.)

~25.07%

Church tax (if applicable)

~0.64%

Maximum marginal rate

~52.07% (ex-AM), ~55.9% (incl. AM)

حاسبة تكلفة التوظيف

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DK
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Employee Benefits and Mobility in Denmark

Employment of expats is supported in Denmark.

Benefits Provider Funded Through Notes
Pension / Social Security Government

Payroll Contributions & Taxation

ATP (Labour Market Supplementary Pension): A mandatory pension scheme applies to those working over nine hours/week.

Occupational (Supplementary) Pensions: In practice, most employees participate in occupational pension schemes, but these are mandated through collective bargaining agreements, not statutory law.

Public (State) Pensions: Funded entirely by taxation, these include universal old-age pension paid after reaching retirement age and a supplementary pension based on residency history.

Other Statutory Benefits Government & Employer

Payroll Contributions & Additional Cost

Occupational Accident Insurance

Unemployment Insurance (A-kasse)

Holiday Pay (Feriekonto)

Leave And Holiday Entitlement In Denmark

Annual leave

Employees are entitled to 25 days of annual leave each year, accruing 2.08 days of leave for every month of completed work. The statutory annual leave system follows a holiday year (ferieår) running from September 1 to August 31.

Public holidays

Denmark observes 10 public holidays:

  • January 1 – New Year's Day

  • Maundy Thursday

  • Good Friday

  • Easter Sunday

  • Easter Monday

  • Ascension Day

  • Whitsun

  • Whit Monday (Pentecost Monday)

  • December 25 – Christmas Day

  • December 26 – Boxing Day

Sick Leave

You pay 100% of salary (including bonuses) with no duration limit, if:

  • Days one to three: Usually unpaid (some employers may choose to pay).

  • Employee has worked at least 240 hours in the past six months, and

  • At least 40 hours in five of the last six months

After 120 days of continuous illness, you may terminate with one-month notice. A medical certificate is required after 14 days of sick leave.

Maternity Leave

Maternity leave consists of 14 weeks, which includes up to four weeks before the expected due date. During this period, you typically pay 50% of the employee's salary for up to five months, and this amount can later be reimbursed by the Danish Maternity Fund.

Employees are required to notify you at least three months before the expected birth date.

An additional 13 weeks of leave is granted to employees who have two or more live-born children in the same birth. This also applies to both parents in cases of adoption of twins or more, provided the children are under one year of age at the time of adoption.

Applications for maternity and paternity benefits must be submitted through Udbetaling Danmark, which manages disbursements from the maternity fund.

Paternity Leave

Biological fathers and employees who are legal, but not biological, parents of a child—regardless of gender—are entitled to two weeks of paternity leave, which can be taken consecutively or separately within 14 weeks following the birth. They're also entitled to an additional 32 weeks of parental leave, which can be shared with the other parent.

Other Types of Leave

  • Parental Leave: Single parents are entitled to 46 weeks of parental leave and may transfer a portion to a close family member, such as a sibling or grandparent. In LGBT+ families, parental leave may be shared with "social parents," including a legal parent's spouse, a cohabiting partner, or the spouse of a known donor.

  • Parents of Twins Leave: Each parent of twins is granted an additional 13 weeks of parental leave following the birth or adoption of twins. This extra leave must be used within one year of the event.

  • Adoption Leave: Adoptive parents are entitled to a total of 32 weeks of leave, which may be divided equally between them. When adopting a child from abroad, both parents are eligible for up to four weeks of paid leave before receiving the child. This pre-adoption leave can be extended by an additional four weeks if the reception is delayed for reasons beyond the adoptive parents' control. After the child is received, the parents are entitled to 14 weeks of paid leave, which may be shared between them; however, only one parent may be on leave at a time during this period.

  • Bereavement Leave: Parents who lose a child under the age of 18 are entitled to 26 weeks of paid bereavement leave.

  • Compassionate Leave: Employees may take unpaid leave if their immediate presence is urgently required due to a serious illness or accident affecting a close relative.

Termination and Offboarding in Denmark

Terminating employment in Denmark requires written notice, clear documentation, and adherence to statutory notice periods based on tenure. Here's how to handle each scenario compliantly.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Denmark Employee Resignation

Notice

Form

Notice of resignation must be given in writing to you by the employee. Oral notice isn't considered legally valid.

Notice period

The statutory notice period for employees is typically one month, unless otherwise agreed in the employment contract or collective agreement.

Payment in lieu of notice or notice waiver

Payment in lieu of notice (paying the employee for the notice period without requiring work) isn't common or explicitly regulated but may be agreed upon contractually or by mutual consent.

End-of-Service Benefits

Severance/Gratuity

No statutory severance pay is mandated under Danish law for employee resignation. Severance may apply if agreed in contract or collective agreements, but it's not a legal requirement upon voluntary resignation.

Other Benefits

Employees are entitled to accrued but unused holiday pay and any other earned benefits as per contract or collective agreements.

Termination Documentation

You must provide a written confirmation of termination/resignation if requested by the employee.

Employer Termination With Cause in Denmark

Acceptable grounds

Termination with cause can only occur if the employee has committed a serious breach of contract or misconduct. Examples include gross negligence, theft, fraud, repeated breaches of company rules, or other significant violations.

The grounds must be well-documented and substantiated. You should consider if lesser disciplinary measures are appropriate before immediate dismissal. Termination must be justified and proportionate.

Notice

Form

Termination with cause must be communicated in writing to the employee, specifying the reasons for dismissal.

Notice period

Termination with cause typically allows for immediate dismissal without any notice period.

Payment in lieu of notice or notice waiver

Since notice can be immediate, payment in lieu of notice generally isn't required.

End-of-Service Benefits

Severance

There's no statutory severance pay required for termination with cause. Severance may be agreed upon in contracts or collective agreements but usually isn't paid in cases of termination with cause.

Other Benefits

Employees are entitled to payment for accrued but unused holiday leave. Other earned benefits must be paid according to contract or collective agreements.

Termination Documentation

You must provide a written termination letter stating the reasons for dismissal.

Employer Termination Without Cause in Denmark

Acceptable Grounds

Termination without cause can be done for reasons such as business restructuring, redundancy, or other operational reasons. You don't need to prove employee fault but must comply with notice periods and fair procedures. Terminations mustn't be discriminatory or in violation of protected rights (e.g., pregnancy, union activity).

Form

Notice of termination must be given in writing to the employee.

Notice period

Statutory notice periods depend on the employee's length of service:

  • Up to six months of employment: one month notice

  • Six months to three years: three months notice

  • Three to six years: four months notice

  • Six to nine years: five months notice

  • Nine to 12 years: six months notice

  • More than 12 years: six months notice

(Notice periods can be extended by contract or collective agreement.)

Payment in lieu of notice or notice waiver

You may agree to pay salary instead of requiring the employee to work the notice period, but this must be agreed upon.

End-of-Service Benefits

Severance

There's no statutory severance pay for termination without cause in Denmark. Severance pay may be included in collective agreements or employment contracts.

Other Benefits

Employees are entitled to payment for accrued but unused holiday leave. Other contractual or collectively agreed benefits must also be paid.

Termination Documentation

You must provide a written termination letter stating the notice period and reason for termination if requested.

Mutual Termination Agreements in Denmark

Notice

Form

The agreement must be documented in writing, clearly stating the terms of termination.

Notice period

Notice periods can be negotiated between the parties and may differ from statutory notice periods if both agree.

Waiver of notice

The parties may agree on payment in lieu of notice or waive notice periods entirely as part of the agreement.

End-of-Service Benefits

Severance

Severance payments may be agreed upon in the mutual termination agreement but aren't mandated by law. Any agreed severance should be clearly detailed in the agreement.

Other Benefits

Payment for accrued but unused holiday leave is mandatory. Other benefits may be included in the agreement if negotiated.

Termination Documentation

A written mutual termination agreement signed by both parties is essential to document the terms and avoid disputes. The agreement should include details such as final working day, payments, and any other agreed conditions.

Offboarding Process for the End of Fixed-term Contracts in Denmark

If the Fixed-Term Contract Ends Normally

Notice

Fixed-term contracts automatically expire on the agreed end date without the need for notice unless otherwise specified in the contract. If the contract is to be renewed or extended, parties should notify each other as agreed in the contract or collective agreements.

If the employee continues working after the fixed term without a new agreement, it may convert to an indefinite contract, requiring notice periods under normal rules.

End-of-Service Benefits

Severance/Gratuity

Danish law doesn't mandate severance pay or gratuity for the normal expiration of a fixed-term contract. Any severance would depend on terms agreed in the contract or collective bargaining agreements (if applicable).

Other Benefits

The employee is entitled to all earned salary, unused vacation pay (vacation allowance), and any other contractual benefits. Danish holiday law requires that accrued vacation pay must be paid out if the contract ends. No additional compensation is generally due at the normal end of a fixed-term contract.

If the Employer Terminates Early

Notice

Early termination of a fixed-term contract by you is generally not allowed unless the contract explicitly allows it. If early termination is permitted, you must comply with the notice period specified in the contract or collective agreement.

If no early termination clause exists, ending the contract prematurely may be a breach of contract and could lead to claims for damages.

Notice periods for indefinite contracts under the Danish Salaried Employees Act (Funktionærloven) range from one to six months depending on length of employment, but these don't automatically apply to fixed-term contracts unless the contract converts.

End-of-Service Benefits

Severance/Gratuity

No statutory severance is required under Danish law for early termination of fixed-term contracts. Severance pay may be due if stated in the contract or collective agreement, or in cases of unlawful dismissal.

Other Benefits

The employee is entitled to salary for the notice period (if applicable). The employee must be paid for all accrued and unused vacation allowance. If termination is unlawful, the employee may have the right to compensation or damages.

Final Payment Timing & Immigration and Visa Compliance in Denmark

Final Payment Deadline

Salary and accrued benefits (e.g., unused vacation pay) must be paid no later than the next regular payday after termination.

Penalty

Failure to pay final salary on time may result in interest penalties and potential legal claims by the employee.

Visa and Immigration Compliance

Employees with work or residence permits must comply with Danish immigration rules upon resignation or termination. You must notify the Danish Immigration Service if the employee loses their job, which may affect the employee's right to remain in Denmark. Employees are responsible for applying for new permits or extensions if applicable.

Key Elements of an Employment Contract in Denmark
When drafting an employment contract for employees in Denmark, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Hire in Denmark Without the Hassle

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Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Denmark.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Denmark

Got Questions? Find Answers Here

Is there a minimum wage in Denmark?

No. Denmark doesn't have a statutory minimum wage. Pay is governed by collective agreements (overenskomster) negotiated between unions and employer organizations. These agreements set sector-specific minimum wages and conditions.

How much holiday allowance must I pay?

At minimum, 1% of the employee's annual salary as ferietillæg (holiday allowance). This is often paid annually in April/May or proportionally when employees take vacation days. Many collective agreements or employers offer up to 3% or more.

How long do employees get full sick pay?

Indefinitely, with no duration cap. Employees get 100% of salary (including bonuses) if they've worked at least 240 hours in the past six months and at least 40 hours in five of the last six months. After 120 days of continuous illness, you may terminate with one-month notice.

Can I terminate a fixed-term contract early?

Generally no, unless the contract explicitly allows it. If no early termination clause exists, ending the contract prematurely may be a breach of contract and could lead to claims for damages.

What's the holiday year (ferieår)?

The statutory annual leave system follows a holiday year running from September 1 to August 31. Employees accrue 2.08 days of leave for every month of completed work.

How much notice is required for termination?

For employees: typically one month (unless otherwise agreed). For employers: depends on employee's length of service, ranging from one month (under six months service) to six months (nine+ years service).

Do I need to reimburse maternity pay?

During maternity leave, you typically pay 50% of the employee's salary for up to five months, and this amount can later be reimbursed by the Danish Maternity Fund. Applications must be submitted through Udbetaling Danmark.

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