Denmark Payroll and Benefits Benchmark guide

180 - Social Security

90 - Social Security
8.00% - Up to 50,000
40.20% - 50,000 - 524,282
56.50% - Over 524,282

No minimum wage. However, for public and private sectors, collective barganing agreement states approximately DKK 110 per hour.

Employees are entitled to 5 weeks each full calendar year (25 days).

First 30 days of the employee’s sick leave is paid by the employer. After the first 30 days, the state pays the sick leave if the employee has been continously employed by the employer for the last 8 weeks and has worked for at least 74 hours. During leave, employees receive 90% of their salary with a maximum of DKK 4,300 per week or DKK 116.22 per hour

Expecting mothers are entitled to leave of 4 weeks before birth, and 14 weeks after. During this period, they are entitled to 50% wages.

New fathers are entitled to leave of 2 weeks before the birth of their child, and 14 weeks after.

Parents have a legal right to 52 weeks maternity pay by the government. 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 years old.

Full time employment is 37 hours weekly.

Overtime is often compensated with additional time off in leiu of pay.

25% standard rate.

Salaries are usually paid on monthly basis. Paydays vary from the last day of the month to the 15th of the following month.

Private pension plans are very common, the average employer contribution can reach 15% of the pensionable salary. The pensionable earnings are calculated on the monthly base salary of January × 12,24.

Danish social security is modest compared to most other countries; Contributions are made both by employee and employer. The average employer contributions are approximately EUR 2,000 per year per for full-time employees. The annual cost for the employee is DKK 1,080 , this amount is withheld by the employer.

Salary is paid in 12.24 installments. Special holiday allowance accounts for the additional 0.24 as it is paid at a rate of 2%. *On September 1, 2020 a new Holiday Act is due to enter into force, which significantly will change the Danish holiday system. (Danish Holiday Act No 60 of 30 January 2018)

Employees are given from 1 month to 6 months notice depending on the length of their employment in the company.

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 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 CBAs also include rules on severance pay that depend on seniority.