Employees who were unable to take their holiday leave due to Covid-19 can postpone it to the current year.
Employer Payroll Contributions
Employee Payroll Contributions
Employee Income Tax
Denmark does not have a mandatory minimum wage. The most common minimum wage is around 110DKK per hour.
The payroll cycle is monthly and wages must be paid by the end of the month.
There are no provisions in the law regarding 13th salaries.
Full-time employment is 37 hours weekly. A workweek should not exceed 48 hours, including overtime.
Any hours worked over 37 must be written in the employment contract.
Denmark does not have a mandatory or general overtime regulation. Rules for overtime should be stated in the collective bargaining agreement. The typical overtime pay rate is 150% of the regular pay for the first three hours, and 200% for subsequent hours, holidays, or work on Sunday.
Employees earn 2.08 days of paid leave every month, for a total of 25 days per year. In general, employees accrue 12.50% of their salary in holiday allowance.
The holidays begin to accumulate on September 1 can be used up to December 31 of the following year.
There are 10 public holidays.
Salaried employees receive payment during sickness from employers for the first 30 days. After this period, social benefits pay employees for up to 22 weeks.
Non-salaried employees are not guaranteed paid sick leave. Any sick benefits should be stated in the employment contract.
Expecting mothers are entitled to leave of 4 weeks before birth, and 14 weeks after. Salaried employees receive 50% of their wages for this time. Employees who are covered by agreement may be entitled to full pay.
New fathers are entitled to 2 weeks’ leave which must be taken during the first 14 weeks following birth.
Following the initial 14 weeks of maternity leave, each parent has the right to take up to 32 weeks of leave. This time can be extended by either 8 or 14 weeks, however, this will decrease the amount of parental allowance received monthly. One of the parents may choose to defer between 8 to 13 weeks of leave which can be kept for a continuous period before the child is one year old.
Work-related injury leave- Employers are covered for work accidents from contributions made to social security (ATP). Also, most employers have additional private workers’ compensation insurance. Work accidents should be reported no later than nine days after the first day of absence. See sick leave for time off and compensation.
In order to terminate an employee, sufficient reasoning must be provided. A written notice is not required but is recommended to avoid any disagreements.
Under the labor law in Denmark, salaried employees are entitled to a notice period of 1-6 months, depending on the length of employment.
There are no statutory laws on severance pay, but salaried employees who have been in continuous employment for between 12 to 17 years are entitled to a severance payment of between 1 to 3 months’ salary. Some collective bargaining agreements also include rules on severance pay and the amount usually depends on the length of employment.
Up to 3 months.
For non-EU/EEA/Nordic/Swiss citizens, there are several tracks to help speed up the process of getting a work visa. The minimum requirement to begin the application process is to have a signed employment contract.
Fast-track scheme: When a company is certified to employ foreigners with special qualifications. This visa can be obtained within 10 days once all of the required documents have been submitted and the processing fee has been paid. If the applicant is already residing in Denmark, is exempt from a visa, or already has a residence permit, a provisional permit may be requested to allow the applicant to begin work immediately. If the applicant is starting employment from abroad, the employer must inform the Danish Agency for International Recruitment and Integration (SIRI).
Pay Limit scheme: Allows professionals that have been offered a job with an annual salary of at least 445,000 DKK. Both the employer and employee must apply together. This scheme does not require the applicant to have a certain level of education or work within a certain professional field. Once all required steps are met and the application fee is submitted, it usually takes up to one month to receive an answer.
Positive Lists: The Positive List Scheme allows applicants who have a certain profession and the coinciding educational background to apply for a visa. Once all required documents are submitted and the application fee is paid, it takes one month to receive an answer. The list of eligible professions is updated twice a year; January 1st and July 1st.
Note: The above schemes do not apply to citizens of the European Union (EU), the European Economic Area (EEA), Switzerland, and citizens of Nordic countries. However, EU, EEA, and Swiss citizens are required to apply for an EU resident document.
Nordic citizens can enter Denmark without any restrictions, however, one must apply for a tax card and register one’s address in the Civil Registration System and receive a Civil Registration number, health insurance card.
EU/EEA/Swiss citizens must apply for an EU residence within 3 months of arrival or 6 months if one is a job seeker. In addition, one must apply for a tax card and register one’s address in the Civil Registration System and receive a Civil Registration number, health insurance card.
25% standard rate.