Employment in Denmark at a glance
Capital
Copenhagen
Language
Danish
Remote workers
1.1M
Currency
kr. Danish Krone / DKK
Working hours
37 hours per week. Regulated by collective bargaining agreements
Public holidays
10 days per year
Minimum hourly salary
-
Tax year
Jan 1 - Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
Penalties range from DKK 10,000 to 20 weeks' salary to employees.
Fun fact
Denmark is often in the top 3 of UN's World Happiness Report
Taxes in Denmark
Employer contributions
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Employer tax: DKK 1076.2 - 4764.2
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Social Security: DKK 8,000 - DKK 10,000
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Occupational injury insurance: DKK 1,176 - DKK 24,441
Employee contributions
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Employee tax: 16% - 52.07% + DKK 1,135
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Pension contributions (ATP): DKK 1,135
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Labour market contributions (AM-bidrag): 1.46%
Income tax
The income tax rate is progressive and includes state, church, and municipal tax
Gross income: DKK 0 - 54,021
Tax rate: 8%
Gross income: DKK 54,022 - 640,109
Tax rate: 43.8%
Gross income: Over DKK 640,109
Tax rate: 56.5%
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Employer of Record in Denmark
What is an EOR?
An Employer of Record is the legal employer of a worker in Denmark As such, the Employer of Record takes care of all Denmark compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.
EOR responsibilities
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Ensuring their employment is compliant with local employment laws
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Processing local payroll
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Filing employment related taxes and returns
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Issuing payslips to the employee
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Distributing salary payments
How it works
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Company
Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.
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Boundless
Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.
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Employee
The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.
Benefits in Denmark
Statutory benefits in Denmark
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Health & Safety
Common non-mandatory benefits in Denmark
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Additional annual leave
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Private pension fund
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Career development allowance
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Flexible working hours
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Hardware and phone
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Massage
-
Bonus
-
Medical insurance
Rights & protections in Denmark
Written employment contract
Payslip
Home office
Health & Safety
Flexible work
Equal opportunity and pay
Protection from discrimination
Severance pay
Union membership
Pay transparency
Leave in Denmark
Paid time off
25 days + public holidays
Paid sick leave
Unlimited
Maternity leave
18 weeks
Paternity leave
2 weeks
Parental leave
48 weeks paid leave
Employment conditions in Denmark
Business transfer
Employees have the right to be informed and, to some extent, consulted by their employers in cases of business transfer. The employees are normally obliged to accept the change of employer, provided that the change of ownership does not result in a detrimental change in the conditions of employment.
Probation
A probation period of a maximum of six months has been introduced in 2023 in Denmark.
Payments in Denmark
Payment frequency
Monthly
Payday
Vary from the last day of the month to the 15th of the following month.
End of employment in Denmark
While termination procedures are straightforward in Denmark, there are a few statutory rules for salaried employees, many of which determined by the Salaried Employees Act.
The process includes following the notice period, having a reasonable justification for termination (if the employee has been with the company more than a year) and, if applicable, compensating the employee.
A written notice is not required but strongly encouraged for documentation purposes. Sufficient reasoning for termination must be provided in writing if required by the employee.
At the termination of employment, the employer is required to pay any outstanding holiday leave to the employee’s holiday fund.
In addition, salaried employees are entitled to a severance pay corresponding to 1-month salary if the employee has been employed in 12-17 years. If the employee has been working for more than 17 years, the severance pay will be three months of salary.
FAQs
There are four ways to hire in Denmark. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each route involves different compliance and operational effort, including alignment with collective bargaining agreements. An EOR enables compliant Danish employment without establishing a local entity.
Contractors work well when the relationship is project-based, and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Denmark, employment is the right structure under Danish law, covering entitlements like paid holiday, sick pay, and maternity and paternity benefits. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Denmark.
HR compliance in Denmark means ensuring your policies and procedures follow all applicable employment laws, regulations, and collective bargaining agreements. This includes rules on salaried employees, sickness benefits, annual leave, tax credits, working hours, and employment contracts. Staying compliant is essential for running your business correctly, protecting employee rights, and reducing employer risk.
An Employer of Record is the legal employer of the individual in Denmark for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 18 weeks of maternity leave and 25 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.
Boundless ensures HR compliance in Denmark by partnering with local employment lawyers and advisers who review contracts and documentation for legal accuracy. We align on key requirements such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When sensitive issues arise, our internal team works with local experts to resolve them promptly and in line with Danish regulations.
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