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 industrialised 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%.
For global companies exploring how to hire in Denmark, this stable economy and transparent labor framework make Denmark an attractive destination to expand operations or hire employees in Denmark without setting up a local entity.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Denmark.
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Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Denmark
Calculate net salary post deductions and compare it with the salary in other countries instantly.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Denmark
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.
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 industrialised 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%.
For global companies exploring how to hire in Denmark, this stable economy and transparent labor framework make Denmark an attractive destination to expand operations or hire employees in Denmark without setting up a local entity.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Denmark.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Denmark planning:
The national holidays mentioned below are valid for the year 2026.
| January 1 | New Years' Day (Nytårsdag) | |
| April 2 | Maundy Thursday (Skærtorsdag) | Movable - Thursday before Easter Sunday |
| April 3 | Good Friday (Langfredag) | Movable - Friday before Easter Sunday |
| April 6 | Easter Monday (2. Påskedag) | Movable - The day after Easter Sunday |
| May 14 | Ascension Day (Kristi Himmelfartsdag) | Movable |
| May 25 | Whit Monday (2. Pinsedag) | Movable - The day after Pentecost |
| December 25 | Christmas Day (1. Juledag) | |
| December 26 | Boxing 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.
This fast turnaround is one of the key advantages of using an Employer of Record Denmark model when speed and compliance are critical.
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.
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.
Periodic workplace risk assessments are mandatory.
These requirements are fully managed through Employer of Record services in Denmark, reducing compliance risk for foreign employers.
“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:
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Employers’ Education Contribution (Arbejdsgivernes Uddannelsesbidrag, AUB) |
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Arbejdsmarkedets Erhvervssikring (AES) |
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A standard working week is 37 hours, which defines Denmark’s work hours across most industries.
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.
By mutual agreement, a probation period can be set for salaried employees. The period can not exceed three months and is not extendable.
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.
A standard working week is 37 hours, which defines Denmark’s work hours across most industries.
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.
By mutual agreement, a probation period can be set for salaried employees. The period can not exceed three months and is not extendable.
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.
“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) |
|
|
Arbejdsmarkedets Erhvervssikring (AES) |
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WorkMotion acts as the legal employer in Denmark through its own entity. WorkMotion handles every step of the employment relationship – from contract generation to monthly payroll remittance – so your company can focus on managing the work.
WorkMotion generates a Danish-law-compliant employment contract covering all mandatory terms:
Danish employment rules require employers to provide written terms of employment within one month of the commencement of work. WorkMotion delivers the contract well ahead of that deadline, typically within five business days of receiving all required information. Contracts are issued in English and Danish and signed digitally.
WorkMotion’s Danish entity is registered with the Danish Business Authority (Erhvervsstyrelsen) and holds a CVR number, which is the prerequisite for lawful employment and payroll reporting in Denmark. Employers are responsible for withholding income tax (A-skat) and the labor market contribution (AM-bidrag) from employee salaries before payment. This Pay-As-You-Earn (PAYE) system is mandatory.
WorkMotion handles all registration and reporting obligations through eIndkomst, Denmark’s statutory income reporting system, from day one.
WorkMotion enrolls each employee in Denmark’s mandatory statutory schemes. ATP is a supplementary labor market pension in Denmark, and it is the employer’s responsibility to make the payment on behalf of their employees.
The employer is obligated to pay two-thirds of the ATP contribution, while the employee pays the remaining one-third.
WorkMotion also manages contributions to:
These are all mandatory employer obligations in Denmark.
Denmark’s holiday pay rules are among the most detailed in Europe and a common source of error for foreign employers.
Under the Holidays Act, employees are entitled to at least 25 days’ annual leave per year, accruing at a rate of 2.08 days per month of employment.
Employers are required to pay 12.5% of gross salary for holiday allowance, whether holidays are paid monthly or funds are set aside.
WorkMotion automatically manages FerieKonto reporting and remittances, ensuring accrued holiday pay is correctly tracked and paid out in line with Danish law.
WorkMotion runs monthly payroll in Danish Krone (DKK), calculating gross-to-net salary after AM-bidrag (the 8% labour market contribution), income tax withholding, ATP, and any applicable pension contributions.
The labor market contribution (AM-bidrag) covers employees in the event of unemployment and sickness. The contribution is 8% of the employee’s gross salary, deducted before any other taxes are calculated, with the employer responsible for withholding and paying the amount on the employee’s behalf.
Payslips are issued to employees on time each month, in accordance with Denmark’s statutory payslip requirements.
For most companies hiring 1 to 10 employees in Denmark, WorkMotion’s EOR model is faster, lower-risk, and significantly cheaper than setting up an entity.
Here’s how the two paths compare:
| WorkMotion EOR | Denmark Entity Setup | |
|---|---|---|
| Setup cost | Per-employee monthly fee | Legal, registration, and bank account costs; estimated minimum share capital of DKK 20,000 for an ApS |
| Time to first hire | Usually 3–5 days | Typically 4–8 weeks for full entity setup, banking, and payroll registration |
| Ongoing legal exposure | WorkMotion holds legal employer liability | Your entity is directly liable for all employment law compliance |
| Ongoing admin burden | Payroll, contributions, reporting, and compliance are handled by WorkMotion | Internal or outsourced payroll, statutory filings, eIndkomst reporting, and contribution management |
| Exit flexibility | Terminate the EOR agreement | Entity dissolution requires formal deregistration with the Danish Business Authority |
EOR is the right fit when you need to hire quickly in Denmark, are testing the market with a first hire, or want to avoid the overhead of running a Danish legal entity.
If you’re planning a long-term operational presence in Denmark, WorkMotion’s Direct Hiring solution can support that transition.
Denmark’s labor market looks straightforward on the surface. In practice, it has several compliance layers that catch foreign employers off guard.
There is no statutory minimum wage in Denmark.
Wages and employment terms on the Danish labor market are usually regulated by collective labor agreements decided by trade unions and employer associations.
Overseas employers often assume they can set any salary above a legal floor. In practice, collective agreements often play a major role in regulating employment relationships in Denmark, with around 80% of the workforce covered by said agreements.
Denmark introduced a mandatory working time recording obligation in mid-2024.
Now, all Danish employers are required to use a compliant working-time registration system that records each employee’s daily working hours. This rule is linked to Denmark’s obligation to fully implement EU working time standards.
Failing to maintain these records creates direct legal exposure.
Danish law requires notice periods for termination.
Employees are protected against unfair dismissal and entitled to compensation if terminated without cause.
Termination must be based on objective reasons such as redundancy, performance issues, or misconduct, and employers must document the reasons and follow due process.
WorkMotion’s legal team guides clients through compliant termination procedures, including accurate notice period calculations based on the employee’s seniority.
The Danish Data Protection Act supplements the GDPR and, in some circumstances, provides even further protection of personal data.
This includes processing of social security numbers (CPR numbers in Denmark), which requires consent as the main rule, unless processing is required by law.
Foreign employers who apply a standard GDPR framework without accounting for rules on CPR number handling risk non-compliance.
WorkMotion’s data handling practices are built to meet both GDPR and the Danish Data Protection Act requirements.
From 1 January 2026, updated RUT requirements mean that companies must upload more detailed documentation, including:
In addition to this documentation, all postings must be registered in the RUT system before work begins, regardless of how short the assignment may be.
Want to avoid the common pitfalls associated with hiring in Denmark? Book a demo with WorkMotion today and find out how an EOR solution can expedite hiring in Denmark.
A B2B SaaS company headquartered in Berlin or Amsterdam identifies a senior backend engineer based in Copenhagen. Setting up a Danish ApS to hire one person is not a viable path.
WorkMotion’s own Danish entity handles the employment relationship, generates a compliant contract, and gets the hire onboarded in days. The engineering team gets their new colleague. The HR team avoids a six-month legal project.
A UK fintech or e-commerce company wants to hire a country manager or sales lead in Denmark to build a Nordic customer base.
They need someone on the ground quickly, employed under Danish law, with a proper contract and local payroll – not a contractor arrangement that creates classification risk.
WorkMotion provides a compliant employment structure, handles Danish payroll in DKK, and offers employees a professional onboarding experience from day one.
A US-based SaaS or green tech company is building its European go-to-market team and wants to hire in Denmark.
Rather than navigating Danish company registration, CVR numbers, and eIndkomst reporting from scratch, they use WorkMotion’s EOR service to hire compliantly without establishing a local entity.
Denmark becomes a viable hiring market within weeks, not quarters.
A 50–200-person company operating a distributed team across Europe has an open role that requires a specific skill set. The best candidate happens to be in Denmark.
The company has no Danish entity and no intention of building one. WorkMotion handles the employment, payroll, and employee benefits – so the hiring manager can make the offer and the HR team can onboard the person without building new compliance infrastructure for a single hire.
Use our Employment Cost Calculator to estimate the cost of onboarding your first Danish employee.
You’ve found the right person in Denmark. The compliance requirements for hiring in Denmark can be overwhelming, but they don’t have to slow you down.
WorkMotion’s own Danish entity handles the legal employment relationship end-to-end, so your company can make the hire without setting up a local structure or managing Danish payroll internally.
Book a Demo and start hiring in Denmark with ease today.
WorkMotion employs Danish workers through its own entity, registered with the Danish Business Authority (Erhvervsstyrelsen) and holding a CVR number — the prerequisite for lawful employment and payroll reporting in Denmark.
This means WorkMotion holds direct legal employer liability in-country, rather than routing employment through a third-party intermediary. For HR and compliance teams evaluating Denmark EOR services, this distinction matters: own-entity coverage provides a cleaner compliance chain and eliminates the risk of unlicensed or unvetted partner arrangements.
Denmark has no statutory minimum wage, but that does not mean salary is unconstrained. Collective agreements negotiated between trade unions and employer associations cover approximately 80% of the Danish workforce and set binding minimum pay and working conditions for most roles.
Foreign employers who set salaries without checking whether a collective agreement applies to the relevant sector or job category risk non-compliance from day one.
Beyond gross salary, Danish employers are required to contribute to ATP (Arbejdsmarkedets Tillægspension), the supplementary labor market pension, with employers covering two-thirds of the contribution and employees one-third.
Employers must also remit 12.5% of gross salary to FerieKonto (the statutory holiday pay fund), contribute to Barselsfonden (the maternity fund), and register for Arbejdsmarkedets Erhvervssikring (AES) occupational accident insurance.
The labor market contribution (AM-bidrag) of 8% is withheld from the employee’s gross salary before income tax is calculated, with the employer responsible for remittance.
Since July 1, 2024, all Danish employers must maintain a compliant working-time registration system that records each employee’s daily working hours — a requirement tied to Denmark’s full implementation of EU working-time standards. Employers that cannot produce clear records face direct legal exposure if inspected by Danish labor authorities.
This obligation applies regardless of whether the employee works fixed or flexible hours, and it catches many foreign employers off guard. WorkMotion’s platform supports compliant time tracking from the moment an employee is onboarded in Denmark.
Denmark does not recognize at-will employment. Notice periods for salaried employees are governed by the Danish Salaried Employees Act (funktionærloven) and scale with seniority, ranging from one month during probation up to six months for employees with more than nine years of service.
Termination must be based on objective grounds such as redundancy, performance, or misconduct, and employers must document their reasoning and follow due process to avoid unfair dismissal claims.
Denmark’s Data Protection Act supplements the GDPR and imposes additional restrictions in certain areas — most notably around the processing of CPR numbers (Danish social security numbers), which generally requires explicit consent unless processing is mandated by law.
Foreign employers who apply a standard GDPR compliance framework without accounting for Danish-specific rules on CPR number handling risk non-compliance with local data protection obligations. WorkMotion’s data handling practices are built to meet both GDPR requirements and the additional obligations under the Danish Data Protection Act.
Once WorkMotion receives all required employee information, a Danish-law-compliant employment contract is typically ready within five business days, covering mandatory terms such as notice periods, holiday entitlement, and applicable protections under the Salaried Employees Act.
WorkMotion then handles payroll setup, ATP and FerieKonto enrollment, eIndkomst registration, and statutory benefit contributions before the employee’s start date.
Discover how WorkMotion helps you hire anywhere, stay compliant, and manage global teams with ease.
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