Hire in Denmark

Denmark consists of the peninsula of Jutland and 1,419 islands, 443 of which have been named and 78 are inhabited (2013). It is a developed and industrialized country with a high standard of living. The differences between rich and poor are smaller than in most comparative countries. The services sector accounts for 72% of employment, industry, and construction 24%, and agriculture and fisheries 4%.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Denmark.

Onboard your talent in Denmark

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Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

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Guidance & payroll management

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Hire in Denmark through an

EOR

Easily onboard your remote talent in Denmark through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Denmark

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Cost of living index

$$$$ (8 of 139 nations)

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Currency

Danish Krone (Kr, DKK)

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Payroll frequency

Monthly

Basic facts

Denmark consists of the peninsula of Jutland and 1,419 islands, 443 of which have been named and 78 are inhabited (2013). It is a developed and industrialized country with a high standard of living. The differences between rich and poor are smaller than in most comparative countries. The services sector accounts for 72% of employment, industry, and construction 24%, and agriculture and fisheries 4%.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Denmark.

Capital

Copenhagen

Official language/s

Danish

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Population

5.9 million (2023 est.)

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VAT - standard rate

25%

The national holidays mentioned below are valid for the year 2025.

January 1New Years' Day (Nytårsdag)
April 17Maundy Thursday (Skærtorsdag)Movable - Thursday before Easter Sunday
April 18Good Friday (Langfredag)Movable - Friday before Easter Sunday
April 20Easter Sunday (Påskesøndag)Movable
April 21Easter Monday (2. Påskedag)Movable - The day after Easter Sunday
May 29Ascension Day (Kristi Himmelfartsdag)Movable
June 8Whit Sunday (Pinsedag)Movable - 7th Sunday after Easter
June 9Whit Monday (2. Pinsedag)Movable - The day after Pentecost
December 24Christmas Eve (Juleaften)
December 25Christmas Day (1. Juledag)
December 26Boxing Day (2. Juledag)

The approximate time for sharing the contract with an employee in Denmark is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Employees in Denmark fall into three broad categories:
    • Blue-collar workers whose employment terms are largely governed by trade unions negotiated collective agreements;
    • White-collar workers whose terms are mainly governed by the Salaried Employees Act; 
    • Chief Executive Officers whose terms are covered by individual contracts.
    • According to the Danish Working Environment Act, it is obligatory to provide employees with mandatory working equipment (display monitor, keyboard, and laptop) for their Workplace Setup at home.

  • The labor market is largely regulated by the various players as opposed to by legislation.
  • Periodic workplace risk assessments are mandatory.

“Total Payment”(Samlet Betaling) is responsible for calculating and collecting contributions to a number of schemes to which employers in Denmark must pay. Employers receive collections from Total Payment (Samlet Betaling)every quarter. Charges and other notices are sent to the company via Digital Post on Virk.dk. If the company is a foreign company, employers will receive the collection by post. Employer contributions can reach DKK 10,000~12,000 per year.

 

Contribution Rates Per Full-Time Employee in 2025:

Individual Scheme

Description

Employers’ Education Contribution (Arbejdsgivernes Uddannelsesbidrag, AUB)

  • For each full-time employee, employers pay DKK 897.5 every quarter

Arbejdsmarkedets Erhvervssikring (AES)

  • The contribution to AES is determined by the employer’s industry code;

  • The Danish Labor Market Fund for Posted Workers (AFU)

  • For each full-time employee, employers pay DKK 0 every quarter to the Labor Market Fund for Seconded Persons (AFU);

  • Maternity Leave Fund

  • For each full-time employee, employers pay DKK 387.51 (2025) every quarter;

  • FerieKonto (administration contribution)

  • For each employee, employers pay DKK 9.5 per month for the months in which the employee reports to FerieKonto;

  • Financing contribution (Finansieringsbidrag, FIB)

  • For each full-time employee, employers pay DKK 33.08 every month;

  • Internship AUB

  • Varies

Working Hours

A standard working week is 37 hours.

 

Overtime

The total duration of the worker’s work must not exceed 48 hours per week. The amount of overtime compensation are determined by Collective Agreements.

Probation Period

By mutual agreement, a probation period can be set for salaried employees. The period can not exceed three months and is not extendable.

 

Termination Notice Period

Notice periods for salaried employees vary between 1 to 6 months based on the duration of employment. An employee can usually give one calendar month’s notice. The notice period is from the first to the last day of a month.

Working Hours

A standard working week is 37 hours.

 

Overtime

The total duration of the worker’s work must not exceed 48 hours per week. The amount of overtime compensation are determined by Collective Agreements.

Probation Period

By mutual agreement, a probation period can be set for salaried employees. The period can not exceed three months and is not extendable.

 

Termination Notice Period

Notice periods for salaried employees vary between 1 to 6 months based on the duration of employment. An employee can usually give one calendar month’s notice. The notice period is from the first to the last day of a month.

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“Total Payment”(Samlet Betaling) is responsible for calculating and collecting contributions to a number of schemes to which employers in Denmark must pay. Employers receive collections from Total Payment (Samlet Betaling)every quarter. Charges and other notices are sent to the company via Digital Post on Virk.dk. If the company is a foreign company, employers will receive the collection by post. Employer contributions can reach DKK 10,000~12,000 per year.

 

Contribution Rates Per Full-Time Employee in 2025:

Individual Scheme

Description

Employers’ Education Contribution (Arbejdsgivernes Uddannelsesbidrag, AUB)

  • For each full-time employee, employers pay DKK 897.5 every quarter

Arbejdsmarkedets Erhvervssikring (AES)

  • The contribution to AES is determined by the employer’s industry code;

  • The Danish Labor Market Fund for Posted Workers (AFU)

  • For each full-time employee, employers pay DKK 0 every quarter to the Labor Market Fund for Seconded Persons (AFU);

  • Maternity Leave Fund

  • For each full-time employee, employers pay DKK 387.51 (2025) every quarter;

  • FerieKonto (administration contribution)

  • For each employee, employers pay DKK 9.5 per month for the months in which the employee reports to FerieKonto;

  • Financing contribution (Finansieringsbidrag, FIB)

  • For each full-time employee, employers pay DKK 33.08 every month;

  • Internship AUB

  • Varies