Overview

Capital
Copenhagen
Currency
Danish Krone
Date Format
dd/mm/yyyy

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)
~11 DKK (annually)
Danish Labour Market Fund (AFU)
~ 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%
Up to 50,543 DKK
40.20%
50,543- 577,174 DKK
56.50%
577,174 DKK and above

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

Your employer calculates your holiday allowance. In general, you accrue 12.5% of your salary in holiday allowance. This complies with 2.08 days of holiday for every month that you are employed. 

Due to the new Danish Holiday Act that will be implemented from September 1, 2020, the government is implementing a transitional period (September 1, 2019 – August 31, 2020). This period employees will earn holiday in the normal manner but will not be able to utilize their entitlement.

Instead, the holiday pay will be frozen, stored in a government fund, and paid out to employees when they retire or leave the Danish labor market. 

Frozen holiday pay must be transferred to the Employees’ Fund for Outstanding Holiday Funds by 31 December 2020. Employers may choose to transfer administration to the Holiday Fund itself or self-administer the money within the fund. 

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Denmark
Mexico
Malaysia
Federal
30
13
43
30
12
42
24
17
41
20
10
30
6
8
14
8
6
14
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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