Overview

Capital
Copenhagen
Currency
Danish Krone (DKK)
Date Format
dd/mm/yyyy

COVID-19

Employees who were unable to take their holiday leave due to Covid-19 can postpone it to the current year.

Contributions

Employer

Employer Payroll Contributions

2,271.60 DKK (annually)
Mandatory Pension Scheme (ATP)
2,803.00 DKK (annually)
Educational Scheme (AUB)
254.00- 5,294.00 DKK (annually)
Occupational Injury (AES)
17.00 DKK (annually)
Danish Labour Market Fund (AFU)
825.00 DKK (annually)
Pension Finance Scheme
1,225.00 DKK (annually)
Maternity Leave Fund
Approximately 5,000.00 DKK, varies by industry
Industrial Injury Insurance
Approximately 930.00- 1,388.00 DKK per month Total Employment Cost
Employee

Employee Payroll Contributions

DKK 1,135.80 (annual)
Social Security

Employee Income Tax

8.00%
Labor Market Tax
22.80% - 27.80%
Municipal Tax
12.11% -15.00%
State Tax
27.00%- 42.00%
Share Tax

Minimum Wage

General

Denmark does not have a mandatory minimum wage. The most common minimum wage is around 110DKK per hour.  

Payroll

Payroll Cycle

The payroll cycle is monthly and wages must be paid by the end of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

Full-time employment is 37 hours weekly. A workweek should not exceed 48 hours, including overtime 

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.  

Leave

Paid Time Off

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. 

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Austria
Brazil
Denmark
Michigan
China
Federal
30
14
44
30
13
43
30
13
43
25
10
35
2
11
13
5
7
12
10
10
Public Holidays

There are 10 public holidays.

Sick Days

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.   

Maternity Leave

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. 

PAID MATERNITY LEAVE (DAYS)
413
410
365
126
45
30
0
Norway
Bulgaria
Serbia
Denmark
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

New fathers are entitled to 2 weeks’ leave which must be taken during the first 14 weeks following birth.  

Parental Leave

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.

Other Leave

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.

Termination

Termination Process

In order to terminate an employee, sufficient reasoning must be provided. A written notice is not required but is recommended to avoid any disagreements.

Notice Period

Under the labor law in Denmark, salaried employees are entitled to a notice period of 1-6 months, depending on the length of employment. 

Severance Pay

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. 

Probation Period

Up to 3 months.

VISA

VISA

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.

VAT

General

25% standard rate.

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    Questions & Answers

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    B. Johnson
    B. Johnson
    6 months ago

    Is there a maximum length for a fixed-term contract?

    Alex Margolin
    Admin
    6 months ago
    Reply to  B. Johnson

    There are no limits on the length of a fixed-term contract or the number of times it can be renewed, but the contract has to be tied to an objective criteria like the completion of a particular task or the arrival of a certain event.

    Lars
    Lars
    5 months ago

    How is the industrial injury insurance calculated?

    Emily Kuhnert
    Admin
    5 months ago
    Reply to  Lars

    Hi, thank you for your question. To answer, the industrial injury insurance is calculated based on the type of industry, number of employees the employer has, and the insurance company used to facilitate the insurance policy.

    I.Mekowulu
    I.Mekowulu
    1 month ago

    How does the optional pay account process work?

    Erez Greenberg
    Admin
    1 month ago
    Reply to  I.Mekowulu

    Hi, The optional pay account (free choice account) is for employees who have a collective agreement and are covered by the Agreement for Trade, Transport and Service, or the National Agreement for shops. It is an employer contribution of 6% (7% starting March 2022) that the employee uses to save up salary for use on holidays, childcare, sickness, etc., or for extra payment for pension. The employee chooses (depending on the agrrement) each year how many vacation days they want to take during the upcoming vacation period, how the value of the untaken vacation days should be used, and what the current payments to the free choice account are to be used for.

    Johan Olofsson
    Johan Olofsson
    1 month ago

    Hi, nice info and page!
    As a future employer of temporary seasonal jobs in Copenhagen, will I have to calculate to give any sick leave benefits on short fixed term contracts, or is that 100% optional given that we wont have a collective agreement for this short period? And on contracts of 1-3 months, does paid time off (vacation) come into play?

    Erez Greenberg
    Admin
    27 days ago
    Reply to  Johan Olofsson

    Hi Johan, being a ‘seasonal worker’ in itself does not mean that time off and sick leave does not have to be given; there are many different employment terms that can impact this so it is important these requirements are always reviewed with the specifics of the company, industry and worker. For sick leave, there could be collective bargaining agreements that could have an impact. Generally white collar would receive full salary during sickness. For Blue collar there tends to be more variation in terms depending on any Union agreement/Employment contract/Staff handbook as well as length of employment. For vacation leave, workers on full-time schedules will earn 2.08 days every month; workers who are paid hourly earn 0.07 days per day.

    Johan Olofsson
    Johan Olofsson
    27 days ago
    Reply to  Erez Greenberg

    Thank you for the reply!
    Since these are seasonal kiosks open to retail household goods only about 1 month, and not being unionised, could we specify in our employment contracts that no sick leave and/or vacation days are earned?

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