Hire and pay employees in Denmark compliantly from day one
Easily hire employees in Denmark with Deel. Deel's best-in-class Employer of Record setup allows us to handle local laws, tax and benefits, and international payroll on your behalf in 150+ countries including Denmark.
Backed by local experts and built-in compliance protection, your next hire could start in as little as 1 days with Deel.
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, and licensing, can take months.
Now you can hire employees in Denmark quickly, easily and compliantly. Automate tax document collection, payroll, benefits, and more. And once your new hire is onboarded, Deel HR keeps their time off and documents in one place, so managing your team in Denmark doesn't mean a separate system.
Already have an entity in Denmark? Our PEO services can run payroll and compliance for your direct employees.
Currency Danish Krone (DKK)
Capital Copenhagen
Official language Danish
Payroll cycle Monthly
All the necessary benefits for Denmark built right in
Deel allows you to provide localised benefits for employees in Denmark within minutes. All from one manageable online dashboard in a single HR platform.
- Holiday Allowance
- Labour 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 quick-start 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 statutory minimum salary provisions in the law.
Individual Income Tax
Income tax in Denmark is complex. Individual income tax rates range from 8% to 56.5%. Income tax is calculated according to progressive rates. Multiple additional factors may affect overall rates, such as 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 30.5
ATP (Labour Market Supplementary Pension) - DKK 198
Financing Contribution (FIB) - DKK 33.08
Compulsory Occupational Injury Insurance - DKK 184.91
Maternity Contribution - DKK 129.17
AUB (Education Contribution) - DKK 299.00
Administration of Holiday Fund - DKK 6
Administration of Frozen Holiday Pay - DKK 5.5
Annual and conditional costs
- 5th Week Holiday - Salary for up to 5 days of holiday for employees with unused holiday by the end of the spending year
- Holiday and Holiday Allowance - Salary for the unused holiday, 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.
- Great Prayer Day Compensation Supplement: 0.45% of the employee's gross annual salary, including any allowances, and company pension contributions.
Mandatory for terminated employees with unused holiday and paid to Feriekonto.
Employer Liability Cost - An administrative fee of 0.60% is applied to ensure ongoing worker compensation and liability coverage 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 7.4 hours per day, 37 hours per week. The standard work week is Monday to Friday.
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 and complex tax systems to running your payroll in Denmark and 150+ other countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
1.6% + fixed fees
of employee salary