Hire and pay employees in
Denmark, hassle-free

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.

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

Monthly costs
- AES (labour market insurance) - DKK 33
- ATP (Labour Market Supplementary Pension) - DKK 198
- 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.

- 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 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.

Maternity leave in Denmark is combined under Parental Leave.

Paternity leave in Denmark is combined under 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. 

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.

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:

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

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

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

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