Hire and pay employees in
Denmark, hassle-free

With Deel, your business can easily hire employees in Denmark. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Denmark is 2 days with Deel.

Currency

Danish Krone (DKK)

Capital

Copenhagen

Official Language

Danish

Payroll Cycle

Monthly

Onboard, pay and manage employees in Denmark with Deel.

Usually, to hire in Denmark, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Denmark quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Denmark
built right in

Deel allows you to provide localized benefits for employees in Denmark within minutes. All in one manageable online dashboard.

  • Holiday Allowance
  • Labor Market Supplementary
  • Salary Guarantee Fund
  • Workers Compensation Insurance
  • Private pension, healthcare, dental, life, disability, and critical illness insurance - Soderberg & Partners
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Denmark

Navigate the tabs below to learn everything you need to know about hiring an employee in Denmark

Minimum Wage Requirements

There are no provisions regarding the minimum salary stipulated in the law. 

Individual Income Tax

Income tax in Denmark is complex. The individual income tax ranges from 8% to 56.5%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as the household status, the number of children, and the employee's location. Local, Church and state taxes may also apply.

Gross Annual Income Tax Rate (%)
Up to DKK 50,761 8%
Up to DKK 544,800 42.83%
Over DKK 544,800 56.5%

Payroll Cost

The employer cost is generally estimated at  ~1% + fixed fees

Monthly costs
- AES (labour market insurance) - DKK 33
- ATP (Labour Market Supplementary Pension) - DKK 189.35
- Financing contribution (FIB) - DKK 47.58
- Compulsory occupational injury insurance - 273.60 kr
- Maternity contribution - DKK 112.50
- AUB (Education contribution) - DKK 267.75
- AFU (Labor Market Fund for Secondary Persons) - DKK 0.58
- Administration of holiday fund - DKK 10.20
- Administration of frozen holiday pay - DKK 1.58
- Compulsory Occupational Injury Insurance - DKK 273.60

Annual and conditional costs
- 5th Week Vacation - Salary for up to 5 days of vacation for employees with unused vacation by the end of the spending year
- Vacation and Holiday Allowance - Salary for the unused vacation, up to 12.5% of the employee's annual base salary, accrued monthly.
- Ferietillæg: approximately 1% of the employee’s salary, varying depending on bonuses allowances, commissions, variable payments, and time off taken during the period, paid in two annual instalments in May and August.

Mandatory for terminated employees with unused vacation and paid to Feriekonto.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 7 hours per day, 37 hours per week. The standard workweek is from Monday to Friday.

Maternity Leave

Maternity leave in Denmark is combined under Parental Leave.

Paternity Leave

Paternity leave in Denmark is combined under Parental Leave.

Parental Leave

Parental Leave in Denmark can be complex.
Employees who have worked at least 160 hours in the 4 months prior are entitled to Parental Leave of varying lengths depending on their relationship to the child. 

Legal mothers

  • 4 weeks pre-birth
  • 2 weeks mandatory post-birth
  • 9 weeks mandatory non-transferrable parental leave
  • 13 weeks transferrable parental leave

Legal father or second legal parent

  • 2 weeks mandatory post-birth
  • 9 weeks mandatory non-transferrable parental leave
  • 13 weeks transferrable parental leave

There are additional regulations allowing up to 4 parental figures to participate in parental leave.

The employee will receive 100% of the salary during this period, and Social Security will be responsible for this pay.

Additional situations and conditions may apply.

Sick Leave

Employees are entitled to paid sick leave for up to 26 weeks. This leave is paid at different rates and by different payers depending upon length:

Period Pay Payer
0 - 30 days 100% Employer
31 - 154 days DKK 4,405 per week or the employee's regular salary if that is lower. Social Security

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Denmark can be complex. There is no at-will termination in Denmark for employers. Terminations can be done for just cause subject to certain conditions.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
    • Performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

The minimum notice period is 2 weeks and will be increased according to the length of the employment.

  • Up to 3 months of employment - 2 weeks’ notice
  • Up to 6 months of employment - 1 month’s notice
  • Up to 3 years of employment - 3 months’ notice
  • Up to 6 years of employment - 4 months’ notice
  • Up to 9 years of employment - 5 months’ notice
  • Over 9 years of employment - 6 months’ notice

Severance for Employees

In Denmark, generally, there are no statutory requirements on severance pay. Employees who have been in continuous employment for between 12 to 17 years are entitled to a severance payment of between one to three months. 

Paid Time Off

Full-time employees in Denmark who work five days per week are entitled to a minimum of 25 paid business days per year. This leaves accrues at a rate of 2.08 days per month. Part-time employees are entitled to the same number of vacation days. If an employee is given more than 25 days, the accrual rate per month is their annual vacation allowance divided by 12. Employees are required to take a minimum of 20 days off annually.

Public Holidays

Denmark celebrates 10 national holidays:

  1. New Year’s Day
  2. Palm Sunday
  3. Maundy Thursday
  4. Good Friday
  5. Easter Monday
  6. Ascension Day
  7. Pentecost Sunday
  8. Whit Monday
  9. Christmas Day
  10. Boxing Day

Onboarding

Onboarding takes 2 business days after the client signs the SOW.

Employment Contract Details

There are no specific rules governing the language for employment contracts as long as the employee understands the contract language. They must be in writing and signed by both parties.

A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. The maximum probation period is 90 days. 
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Hiring in Denmark, hassle-free

With Deel, your business can easily hire employees in Denmark with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Denmark and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

~1% + fixed fees

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Denmark?

View our Employee Cost Calculator
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