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 Social Security (ATP)
5,300.00 DKK
Public social security schemes (estimated)
5,000.00 DKK
Industrial injuries insurance (estimated)
1,150.00 DKK
Employer contribution to Maternity Leave Fund
13,721 DKK Total Employment Cost
Employee

Employee Payroll Contributions

1,135.80 DKK p.a.
Social Security (ATP)

Employee Income Tax

National/ State Tax
12.11%
Bottom Tax
24.971%
Top Tax (15% of part of the top tax base Exceeding 544,800 DKK)
Local Tax
8.00%
Labor Market Tax
24.971%
Municipal Tax (average)
Share Tax
27.00%
up to 56,500 DKK
42.00%
56,500 DKK and above
Church Tax
0.669%
Church tax average
Church tax average, Church tax is imposed by municipalities and is only charged for members of the Danish State Church (Lutheran). When registering in Denmark, all individuals should explicitly state if they should not be comprised.
Employer Taxes
3 HIGHEST
3 LOWEST
Mexico
China
South Korea
Denmark
South Africa
Georgia
Macedonia
43.72%
40.92%
34.84%
13.721%
2%
2%
0%

Minimum Wage

General

No law in Denmark mandates minimum wage. The minimum wage is decided through collective bargaining agreements in each sector. The most common minimum wage across all sectors is 110 DKK per hour.

Payroll

Payroll Cycle

The payroll cycle in Denmark is generally monthly, and employers must make payments on the same day of each month before the end of the month.

13th Salary

In Denmark, it is not a legal requirement to pay a 13th-month salary payment; however, employees are known to offer employee bonuses.

Working Hours

General

According to the Working Time Directive Act, the maximum average working hours are 48 hours per week, calculated as an average over four months. A general working week for a Danish employee is five days, working on average 37.5 hours per week.

Overtime

All work more than the standard working hours a week is to be paid as overtime and is regulated by the employment contract or collective agreement. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 48 hours a week.

All overtime hours in excess of 37 hours a week are paid at an overtime compensation rate of between 150.00% and 200.00% of the employees’ regular pay rate, depending on the collective bargaining agreement in place.

Leave

Paid Time Off

In Denmark, the standard paid leave entitlement for full-time employees is 25 days per year, accrued at the rate of 2.08 days of paid leave for each month of service.

The Danish holiday pay system operates with two different systems for pay during holidays. An employee is either entitled to pay during holiday (i.e., payment of the usual salary or wages) and a supplement of 1% (holiday supplement), or holiday allowance consisting of 12.5% of the employees’ salary or wages. The holiday allowance must be deposited with FerieKonto so that the money is available to be paid out to the employee.

The paid leave entitlement is accumulated from 1st September through to 31st December of the following year.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Brazil
Tanzania
Denmark
Michigan
China
Federal
30
14
44
30
13
43
28
15
43
25
10
35
2
11
13
5
7
12
10
10
Sick Days

During the first 30 days of illness, the employee is entitled to receive 50.00% of their regular wages, so long as they have fulfilled the conditions to be eligible for this entitlement. From the 31st day of sickness until 22 weeks, the social security assumes the responsibility and compensates the employee 90.00% of their regular salary up to 4,355 DKK.

Maternity Leave

A pregnant employee is entitled to 18 weeks of maternity leave, four weeks preceding the due date, and 14 weeks after the birth, where the first two weeks are mandatory.

Employees who meet statutory eligibility requirements are covered by the Danish Salaried Employees Act and are entitled to 50.00% of their regular salary from the employer for four weeks before the expected date of birth until 14 weeks after the actual date of delivery.

PAID MATERNITY LEAVE (DAYS)
413
410
365
126
40
30
0
Norway
Bulgaria
Serbia
Denmark
Malawi
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

The father is entitled to take two weeks of paternity leave during the mother’s 14-week period of maternity leave.  There is no legal obligation for the employer to pay salary during paternity leave. However, it is common practice in Denmark under collective agreements and under some individual agreements that employees receive full salary from the employer for a certain period during leave.

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.

During the parental leave (14 weeks after receiving the child), adoptive parents are entitled to leave to the same extent and regulation as biological parents.

Other Leave

In Denmark, employees between 18 and 30 are liable to be called up for the national military or civil service by ballot, while both men and women can volunteer for national service. The normal period of service is four months. Employees must be granted leave by the employer during national service and are protected against dismissal regarding requesting or taking such leave.

Termination

Termination Process

Employers can terminate a fix term contract for the following reasons – business, personal or worker’s’ misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain actions.

Notice Period

In accordance with the labor law in Denmark, the notice period is dependent on the length of employment. In general, the notice period is between one and six months.

The Danish Salaried Employees Act stipulates the following notice periods, which are based on the individual employee’s length of service:

Seniority                                                                      Employer’s notice period

5 months of employment or less:                           1 months’ notice effective as of the end of a month.

2 years and 9 months of employment or less:      3 months’ notice effective as of the end of a month.

5 years and 8 months of employment or less:      4 months’ notice effective as of the end of a month.

8 years and 7 months of employment or:             5 months’ notice effective as of the end of a month.

More than 8 years and 7 months of employment:   6 months’ notice effective as of the end of a month.

Severance Pay

There are no statutory laws on severance pay; however, salaried employees who have been continuously employed for 12 or 17 years are entitled to severance pay corresponding to 1 month or three months’ salary if the employer terminates the employment.

Probation Period

The probationary period in Denmark is dependent on the type of role and is stipulated within the employment agreement. In general, probation periods are up to three months.

VISA

VISA

Danish law provides many options for employers of foreign nationals.

Denmark is a member of the European Union (EU) and the Schengen Area. Nationals of Finland, Iceland, Norway, and Sweden are free to reside, study and work in Denmark. However, suppose the employee is an EU/EEA or Swiss citizen and intends to live in Denmark for more than three months. In that case, the employee must apply for a registration certificate at the International Citizen Service or the State Administration (in Danish: “Statsforvaltningen”) upon arrival in Denmark.

If the employee is a citizen of a country outside the EU/EEA or Switzerland, the employee must apply for a residence and work permit before entering Denmark. Suppose the employee already resides legally in Denmark. In that case, the employee can submit their application for a residence and work permit at newtodenmark.dk, at a Danish police station, or the Citizen Centre of the Danish Agency for International Recruitment and Integration.

VAT

General

The standard rate of VAT in Denmark is 25.00%.

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    Questions & Answers

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    B. Johnson
    B. Johnson
    10 months ago

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

    Alex Margolin
    Admin
    10 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
    9 months ago

    How is the industrial injury insurance calculated?

    Emily Kuhnert
    Admin
    9 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
    5 months ago

    How does the optional pay account process work?

    Erez Greenberg
    Admin
    5 months 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
    5 months 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
    5 months 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
    5 months 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?

    Sandor
    Sandor
    3 months ago

    So how are calculated overtime hours overal. I dont get it. Any hours after 37 should be treated as overtime? I’m in construction. Working 53 hours weekly. In contract not stated any fixed working hours.

    Erez Greenberg
    Admin
    3 months ago
    Reply to  Sandor

    Hi Sandor, overtime law in Denmark isn’t strict and overtime pay is not always required, that’s why it’s important for employees to have overtime agreements written within their contracts. There are however limits on working hours and daily rest requirements. An employee should not be working more than 48 hours on average per week measured over a period of four months. I recommend speaking with your HR team to understand your companies specific requirments.

    Markus Kokkonen
    Markus Kokkonen
    2 months ago

    When holiday payment should be payed when you have claimed that? I have waited over one month so far..
    And yes i have spoke with employer several times.

    Emily Kuhnert
    Admin
    2 months ago

    Hi Markus, holiday pay is generally paid out on May 1st of each year.

    Markus Kokkonen
    Markus Kokkonen
    2 months ago
    Reply to  Emily Kuhnert

    How it goes on that situation when you dont work on that company anymore? I have changed my employer in September.

    Emily Kuhnert
    Admin
    2 months ago

    Hi Markus, how long did you work at your previous company for?

    Markus Kokkonen
    Markus Kokkonen
    2 months ago
    Reply to  Emily Kuhnert

    Not long. 4 months. There was so much issues with salaries etc.

    Emily Kuhnert
    Admin
    2 months ago

    Hi Markus, this is not something that we can really advise on. In general, an employee is eligible to get paid holiday pay after completing one month of employment. At the end of your employment, you should receive holiday pay unless it’s already been taken. However, most likely holiday pay will be paid to your account with Feriekonto. I would suggest that you speak with the employer and find out what has been arranged.

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