How to hire and pay EMPLOYEES IN

Denmark

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Before hiring

EMPLOYEES IN
Denmark

Before hiring employees in Denmark, there are some key things you’ll need to know. Firstly, Denmark has one of the most generous parental leave policies in the world. Parents are entitled to a combined total of up to (partially paid) 52 weeks of leave.

It’s also important for employers to know that for each month worked in a calendar year, employees accrue 2.08 days of paid vacation leave. This means the number of paid holidays an employee can take in a year depends on the number of months they worked in the previous year.

We know keeping track of all this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Denmark below. 

At a Glance

CURRENCY

DKK

OFFICIAL LANGUAGE

DANISH

PAYROLL FREQUENCY

MONTHLY

PUBLIC HOLIDAYS

11

(based on region;
see here
)

EMPLOYER TAXES

1,241 DKK PER MONTH

of gross salary

13th / 14th SALARY

N/A

Good to know

  • The number of paid holidays an employee can take in a year depends on the number of months they worked for in the previous year. For each month worked in a calendar year, employees accrue 2.08 days of paid vacation leave that they can use the next year (which equals 25 days for the full year's work).
  • An employee in Denmark subject to a non-compete agreement is entitled to a monthly compensation of 40% (if the duration of the clause is up to six months) or 60% (where the duration of the clause is longer than six months) of their monthly salary at the time of the termination of employment, for the full duration of the agreement.
  • Denmark has one of the most generous parental leave policies in the world with parents entitled to a combined total of up to (partially paid) 52 weeks of leave.

Employment in

Denmark

Working hours and overtime

A workweek in Denmark is around 37 hours. It should not exceed 48 hours, including overtime. 

Typical overtime pay rate is 150% of the regular pay for the first three hours, and 200% for subsequent hours, holiday, or Sunday work.

Employment contracts
Probationary period

In Denmark, probationary periods are three months.

Pensions
Notice period

When it comes to dismissal, employees are entitled to a notice period of between one and six months, depending on their seniority.

For resignations, employees in Denmark must provide their employer with one month's notice.

IP protection and non-compete agreements

Non-compete agreements in Denmark must be reasonable in scope and can last only for a maximum of 12 months from an employee’s date of termination.

During the term of the agreement, employees are entitled to a monthly compensation of 40% (if the duration of the clause is up to six months) or 60% (where the duration of the clause is longer than six months) of their monthly salary at the time of the termination of their employment.

This compensation can be reduced to 16% (where the duration is up to six months) or 24% (where the duration of the clause is longer than six months) if the employee obtains other appropriate employment during the term of the clause.

Employment cost calculator

Holidays

01 Jan

New Year's Day

13 May

Ascension Day

01 Apr

Maundy Thursday

23 May

Whit Sunday

02 Apr

Good Friday

24 May

Whit Monday

04 Apr

Easter Sunday

25 Dec

Christmas Day

05 Apr

Easter Monday

26 Dec

2nd Day of Christmas

30 Apr

Prayer Day

01 Jan

New Year's Day

01 Apr

Maundy Thursday

02 Apr

Good Friday

04 Apr

Easter Sunday

05 Apr

Easter Monday

30 Apr

Prayer Day

13 May

Ascension Day

23 May

Whit Sunday

24 May

Whit Monday

25 Dec

Christmas Day

26 Dec

2nd Day of Christmas

Employer tax

The total social contributions for employers in Denmark is 1241 DKK per month and includes contributions for pension, education, occupational injury, the Danish Labour Market Fund, maternity leave fund, and industrial industry insurance. 

Individual tax

Employees in Denmark are taxed between 8% and 56.5% depending on their income bracket. Employees also pay 1135.80 DKK in social security contributions.

Termination of employment

Employees who have been in continuous employment for 12 or more years are entitled to a severance pay of between one and three months’ salary. Shorter term employees may be entitled to severance pay negotiated in their employment contract or under a collective agreement.

Start hiring employees in

Denmark

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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wherever they work in the world.

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