Exclusive Webinar - Paying global teams: Strategic compensation and compliant payroll
Save your spot
Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Book a demo
Exclusive Webinar - Paying global teams: Strategic compensation and compliant payroll
Save your spot
Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in Denmark
Capital
Copenhagen
Currency
Danish Krone (DKK)
Languages
Danish
GDP per Capita
$65,713.41
Employer Tax
13,921.6 DKK
Payroll Frequency
Monthly
Denmark, a notably advanced country with a high standard of living, ranks among the top spots in education, health care, civil liberties, democratic governance, and other areas. The country follows a mixed economy. An agriculture-focussed country earlier, Denmark now has over 75% of its GDP coming from the service sector. The 20222 GDP per capita of Denmark ranks in the 10th position. Major industries of Denmark include wind turbines, pharmaceuticals, medical equipment, machinery, tourism, transportation equipment, food processing, and construction.
Major economic hubs:
Copenhagen, Aarhus, Odense, Aalborg
Skills in demand:
Local: 1
World: 131
Local: 2
World: 220
Local: 3
World: 360
Local: 4
World: 464
Local: 5
World: 508
Jobindex.dk, WorkinDenmark.dk , Jobfinder.dk
3,050,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The table below shows the average monthly salaries of some jobs in Denmark:
| Job Title | Average Monthly Salary (DKK) | Average Monthly Salary (USD) |
| Accounting Manager | 60,500 | 8600.14 |
| Office Manager | 33,300 | 4733.63 |
| Business Analyst | 52,200 | 7420.28 |
| Business Development Manager | 62,500 | 8884.44 |
| Project Manager | 43,100 | 6126.71 |
Collective trade union agreements and individual employment contracts govern the working conditions in Denmark. Employees are generally of two categories: Salaried and non-salaried. The first category includes high-skilled jobs and is paid a monthly salary. The second category is comparatively low-skilled and is paid on an hourly basis. Read forward to gathering more information on the work-related aspects prevalent in Denmark.
The employment contract can be written in any language understandable to the parties involved and has no statutory language requirement.
The usual probationary period followed in Denmark is from one to three months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 28 Mar | Maundy Thursday | National Holiday |
| 29 Mar | Good Friday | National Holiday |
| 31 Mar | Easter Sunday | National Holiday |
| 1 Apr | Easter Monday | National Holiday |
| 9 May | Ascension Day | National Holiday |
| 19 May | Whit Sunday | National Holiday |
| 20 May | Whit Monday | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
| 26 Dec | 2nd Day of Christmas | National Holiday |
| Type of Leave | Duration | Mandatory |
| Annual Leave | 25 days | Yes |
| Sick Leave | 30 days | Yes |
| Maternity Leave | 18 weeks | Yes |
Leave Compliance
Payroll cycle
The employee must be paid at the end of each month.
Minimum wage
Denmark does not have a statutory minimum wage. However, the common minimum wage would be DKK 110 per hour. Under the pay-limit scheme for 2022, the minimum gross annual salary is 448,000 DKK.
Overtime pay
There is no law regarding overtime pay in Denmark. Usually, it will be mentioned in the collective agreement.
| Category | Amount (DKK) |
| Pension Scheme | 2,271.6 |
| Maternity fund | 1,350 |
| Industrial injuries insurance, estimated * | 5,000 |
| Other public social security schemes, partly estimated | 5,300 |
*Please be informed that the estimated industrial injuries insurance may vary.
| Category | Amount (DKK) |
| Mandatory Pension Scheme (ATP) | 1,135.8 |
| Taxes | Income Basis | Tax Rate |
| State taxes: | ||
| Bottom tax | Personal income | 12.10% |
| Top tax (for the part of the top tax base exceeding DKK 552,500) | Personal income | 15.00% |
| Local taxes: | ||
| Municipal tax (average) | Taxable income | 24.982% |
| Labor market tax | Personal income | 8.00% |
| Share tax: | ||
| DKK 0 to 57,200 (for married couple – 114,400 DKK) | Share income | 27.00% |
| More than DKK 57,200 | Share income | 42.00% |
The standard VAT rate in Denmark is 25%.
No legal provision for the 13th-month salary.
The Termination process in Denmark follows a fair procedure, as indicated by the Salaried Employees Act. Employees are protected from any unfair dismissal after 12 months of employment. Employers must have a justifiable reason for terminating an employee and give written notice about the decision. A collective trade union agreement often governs the dismissal of non-salaried employees. The notice period is usually shorter than in the case of salaried employees.
The notice period for employees during the probationary period is from 14 days to 30 days, while for permanent employees, it ranges from 14 days to 180 days.
The severance pay in Denmark is as follows:
| Duration of service | Severance |
| Upto 5 months | 1 month’s pay |
| 5 months – 2 years and 9 months | 3 month’s pay |
| 2 years and 9 months – 5 years and 8 months | 4 month’s pay |
| 5 years and 8 months – 8 years and 7 months | 5 month’s pay |
| More than 8 years and 7 months | 6 month’s pay |
The visa and immigration requirements vary for different countries.
Citizens of nordic countries – Finland, Sweden, Iceland, and Norway, are free to stay and work.
EU/EEA/Swiss citizens – Need registration certificate at International Citizen Service or State administration on arrival.
Other nationals – need residence and work permits before entering Denmark.
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
By use case
By team
By company size
Denmark
