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.

Taxes

Employer

Employer Payroll Tax

~2,270 DKK (annually)
Mandatory Pension Scheme (ATP)
~2,780 DKK (annually)
Educational Scheme (AUB)
~215-5,140 DKK (annually)
Occupational Injury (AES)
~ 590 DKK (annually)
Pension Finance Scheme
~1,150 DKK (annually)
Maternity Leave Fund
~1035- 23,470
Industrial Injury Insurance
Approximately 1,241 DKK per month Total Employment Cost
Employee

Employee Payroll Taxes

DKK 1,135.80
Social Security

Employee Income Tax

8.00%
Labor Market Tax
22.8% - 27.8%
Municipal Tax
12.11% -15%
State 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

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, holiday, or Sunday work.  

Leave

Paid Time Off

Denmark has a “concurrent holiday” system, meaning that employees can use their holiday as they earn the days each month. Employees earn 2.08 days of paid holiday every month, for a total of 25 days per year. In general, employees accrue 12.5% of your salary in holiday allowance. 

The holidays begin to accumulate on September 1, and run through August 31 of the following year. Employees who wish to take days before they earn them can do so with the agreement of the employer.

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

 

 

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Denmark
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
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)
410
365
365
126
45
30
0
Bulgaria
Serbia
Albania
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 is no general statutory regulation 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 that depend on seniority. 

VAT

General

25% standard rate.

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    Questions & Answers

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    B. Johnson
    B. Johnson
    1 month ago

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

    Alex Margolin
    Admin
    1 month 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
    24 days ago

    How is the industrial injury insurance calculated?

    Emily Kuhnert
    Admin
    24 days 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.

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