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 :
Currency :
Danish Krone (Kr, DKK)
Languages spoken :
Population :
5.86 million (2021 est.)
Minimum wage 2023 :
Regulated by CBAs
Cost of Living index :
$$$$ (8 of 139 nations)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
4.7% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2023.

Holiday Name
Extra Information
January 1
New Years' Day (Nytårsdag)
April 6
Maundy Thursday (Skærtorsdag)
Movable - Thursday before Easter Sunday
April 7
Good Friday (Langfredag)
Movable - Friday before Easter Sunday
April 10
Easter Sunday (Påskesøndag)
April 11
Easter Monday (2. Påskedag)
Movable - The day after Easter Sunday
May 5
Great Day of Prayer (Store Bededag)
Movable - The 4th Friday after Easter
May 18
Ascension Day (Kristi Himmelfartsdag)
May 28
Whit Sunday (Pinsedag)
Movable - 7th Sunday after Easter
May 29
Whit Monday (2. Pinsedag)
Movable - The day after Pentecost
December 25
Christmas Day (1. Juledag)
December 26
Boxing Day (2. Juledag)

Contract Sharing Time

The approximate time for sharing the contract with an employee in Denmark is 4 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.

What You Need To Know

  • 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.
  • Danish employer social contributions per employee are modest compared to other countries.

Labor Conditions

Working Hours

A standard working week is 37 hours.



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

There is no statutory provision for a 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.

Leave / Time Off

Annual Leave

An employee accrues 5 weeks, or 25 days, of paid holiday per holiday year. During periods when the employer is not paying salary in whole or in part, there is no accrued paid holiday.

Sick Leave

An employee who is employed is entitled to 30 days paid sick leave from the employer provided they have worked for at least 74 hours during the eight weeks preceding the illness. After 30 days, sick leave is paid by the local authority.

Parental Leave

Parents are entitled to 32 weeks of shared leave in addition to maternity and paternity leave, and 52 weeks of combined entitlement to maternity and paternity benefit.


Maternity Leave

A female employee is entitled to 4 weeks’ leave prior to the expected birth date and 14 weeks after the delivery date. During this leave of absence, a salaried employee is entitled to 50% of the salary paid by the employer. 

The employer is entitled to a reimbursement of the salaries paid from the public authority, Udbetaling Danmark, provided they reported the leave 4 weeks before the expected due date and no later than 8 weeks after the payment has stopped.

Paternity Leave

A male employee is entitled to two weeks’ leave following the birth of their child. During this leave of absence, they are entitled to parental leave benefits.

Other Types of Paid Leave

Carer’s Leave

An employee has the right to time off to care for a close relative who is dying, is seriously ill or disabled. The leave can be up to 6 months with possible extension of 3 months.


Dependent Care Leave

An employee is entitled to paid leave for up to 5 days per child over a period of 12 consecutive months in the event of the employee’s hospitalization together with their own children under 14 years of age. During carer’s leave, the government is responsible for the employee’s pay.


Discretionary Time Off

An employee can have time off with pay by agreement with the immediate supervisor, to attend their own wedding, to attend their child’s wedding, and to attend the funeral of a close relative. The duration of the time off must be agreed upon.

Unpaid Leave

Sorrow Leave For Parents

An employee who is a parent, an adoptive parent, or a co-mother who loses a child before the age of 18 is entitled to 26 weeks of unpaid leave.

Statutory Benefits

“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 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 Per Quarter in 2023:

Employers’ Education Contribution (AUB)803.25 kr. A new 2023 is yet to be announced
Arbejdsmarkedets Erhvervssikring (AES)Varies.
The Danish Labour Market Fund for Posted Workers (AFU)0 kr.
Maternity Leave Fund ( from 01.10.2021337.50 kr.
FerieKonto (administration contribution)11 kr. / month per employee
Financing contribution (Finansieringsbidrag, FIB)123.25 kr
Employees’ Holiday Funds (Lønmodtagernes Feriemidler, Administration Contribution)4 kr.
Internship (Praktikplads, AUB)Varies.

Health Insurance

The employer does not contribute towards Denmark’s free public healthcare for citizens and residents.

Other Insurances

Accident Insurance

Employers are required to transfer their risk of accidents to an insurance company undertaking accident insurance under the Workers Compensation Act.

Unemployment Insurance

The Danish unemployment insurance system is a voluntary scheme. An employee is not automatically insured against unemployment. Contributions are 8% of an employee’s gross salary.

Public Pension

All individuals working in Denmark; fully tax liable to Denmark; and who are covered by Danish social security; must also pay labor market supplementary pension (ATP). As an employer, you must report ATP contributions at A-rate. The contribution rates vary based on hours and payment frequency.

Applicable rates for A- Rate ATP contributions:

Monthly paid
HoursEmployer Share
> 117 hours / month189.35 kr.
78 – 116 hours / month126.25 kr.
39 – 77 hours / month63.10 kr.
< 39 hours / month0.00 kr.
14-day paid
HoursEmployer Share
> 54 hours / 14 days99.60 kr.
36 – 53 hours / 14 days66.40 kr.
18 – 35 hours / 14 days33.20 kr.
< 18 hours / 14 days0.00 kr.
Weekly paid
HoursEmployer share
> 27 hours / week49.80 kr.
18 – 26 hours / week33.20 kr.
9 – 17 hours / week16.60 kr.
< 9 hours / week0.00 kr.

Other Statutory Benefits

The following additional benefits are paid from Social Security.


Sick Child Benefit

The benefit is paid to a parent to care for a seriously ill child younger than 18 years who is hospitalized for more than 12 days.


Funeral Grant

The funeral grant is funded by ATP. It is paid to cover the cost of the deceased’s funeral.


The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.


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