Denmark

Currency
Danish krone (DKK)
Payroll Frequency
Monthly
Employer Taxes
12.4%

About 

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.

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

Cycle

Monthly

Avg employer tax

~10%–12% of gross salary

Taxation

Tax breakdown - Employer
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

Standard rate of 25% on goods and services

Holidays / PTO

Public holidays in 2024
  • 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
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

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

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Tax Calculation

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DK
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
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
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
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

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
EOR
Payroll
Contractor of Record
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
Monthly, usually paid on the last working day of the month
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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DK
*
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Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
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
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
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
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

Expanding into Denmark? With RemotePass, you can compliantly hire, onboard, and pay employees or contractors in Denmark without establishing a local entity. From tax registration to compliant contracts and payroll processing, we take care of the legal, regulatory, and operational complexities so you can focus on growing your business.

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.

Free 7-day trial

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Cancel anytime

Let’s Chat

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Denmark

العملة
Danish krone (DKK)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
12.4%

عن 

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.

ملخص

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

موعد صرف الرواتب

Monthly

متوسط ​​ضريبة صاحب العمل

~10%–12% of gross salary

تحصيل الضرائب

التوزيع الضريبي - صاحب العمل
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

Standard rate of 25% on goods and services

العطل / PTO

العطلات الرسمية في عام 2024
  • 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
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

إنهاء العقد

عملية الإنهاء

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
فترة الإشعار

Notice periods vary according to the employee’s length of employment and typically range from one to six months.

مكافأة نهاية الخدمة

There are no laws on severance pay in Denmark. Nevertheless, employees continuously employed for 12 years or more are entitled to severance pay equivalent to 1 month’s salary. Employees continuously employed for 17 years or more are entitled to severance pay equivalent to three months’ salary.

فترة الاختبار

Probation periods depend on the role and are set out in each employment contract. Typical probation periods are three months.

ازدهار القوى العاملة عن بعد في _

تحديات التوظيف عن بعد في _

تبسيط التوظيف عن بعد في _ باستخدام ريموت باس

حساب الضريبة

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DK
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
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
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي
GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل