Social Security - DKK 8,000 - DKK 10,000
Occupational injury insurance - DKK 1,176 - DKK 24,441
Pension contributions (ATP) - DKK 1,135
Labour market contributions (AM-bidrag) - 1.46%
Income tax: The income tax rate is progressive and includes state, church, and municipal tax
|GROSS INCOME||PROGRESSIVE TAX RATE|
|DKK 0 - 46,700||8%|
|DKK 46,701 - 544,800||40%|
|Over DKK 544,800||56.5%|
Paid time off: 25 days + bank holidays
Paternity leave: 2 weeks
Paid sick leave: Unlimited
Parental leave: 32 weeks paid leave
Maternity leave: 18 weeks
HQ country employment & payroll
Independent contractor agreements
Direct local employer setup
Partnering with an Employer of Record Denmark /full-service Professional Employer Organisation
Setting up a local company in Denmark is relatively straightforward. However, the difficult part comes after the initial setup when the employer needs to run payroll for their Denmark employees every month, file taxes, extend and manage employee benefits, and follow changes in rules and regulations to collective bargaining agreements.Here is an overview of everything you will find yourself needing to do.
When you hire employees in Denmark, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws, regulations and collective bargaining agreements regarding employment and work practices. Complying with local employment law in Denmark is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all Danish salaried employees laws, sickness benefits, annual leave, minimum wage, tax credits, working hours regulations, employment contracts, etc.
As with every other country, there are certain costs associated with employing a worker in Denmark that come on top of the gross salary you are offering. A Denmark employer must contribute to social security and occupational injury insurance . To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
It means that Boundless is the legal employer of the individual, as far as the Denmark government, tax, and employment authorities are concerned. We are responsible for:
Boundless as the Employer of Record Denmark files all pertinent taxes, and other contributions to the social system for the Denmark employee to be compliant.
In Denmark, both employers and employees have to pay taxes. For employers, these include social security contributions and occupational injury insurance. For employees, these are social security contributions that include pension contributions and labour market contributions, as well as and income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.