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Danish Kroner is the official currency of Denmark. Its currency symbol is DKK
Estimated at 38% of employee’s salary
Danish is the official language of Denmark
The population of Denmark is 5.9 million
Employees in Denmark are typically paid monthly
To start growing your team in Denmark, you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Denmark offers distinct advantages due to the country’s highly skilled workforce and strong emphasis on work-life balance. Danish workers are typically well-educated, with proficiency in English and a strong work ethic, making them valuable assets for international businesses. Moreover, Denmark’s flexible labour market laws and progressive social policies, such as generous parental leave and healthcare benefits, contribute to a stable and motivated workforce. However, challenges include relatively high labour costs and complex employment regulations that can require careful navigation. Additionally, cultural differences and language barriers may pose initial communication challenges for non-Danish employers, although these can be mitigated through effective cultural integration strategies and language support. Overall, hiring in Denmark offers access to skilled talent and a supportive work environment, albeit with considerations for cost and regulatory compliance.
Hiring remotely in Denmark offers numerous advantages for businesses seeking highly skilled talent. Denmark has a well-educated workforce with strong expertise in areas such as technology, engineering, and design, making it an attractive option for companies needing specialized skills. Danish professionals are known for their high level of English proficiency, which facilitates seamless communication in international teams. Additionally, Denmark consistently ranks high in work-life balance, ensuring a motivated and productive workforce. The country’s strong digital infrastructure supports efficient remote work, and its time zone (UTC+1) is well-aligned for collaboration with European companies. These factors, combined with a culture of innovation, make Denmark an excellent choice for remote hiring.
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| Social Security Contributions | Approximately 8% of the employee's gross salary. |
| Labour Market Contributions | Around 8% of the employee's gross salary. |
| Pension Contributions | Typically 1-2% of the employee's gross salary. |
| Holiday Pay | Approximately 12.5% of the employee's gross salary. |
| Health Insurance and Other Benefits | These can vary but are typically included in the remaining percentage, bringing the total to approximately 37.5% to 39.5% of the employee's gross salary. |
Holiday Pay: Employees are entitled to five weeks of paid vacation per year, with holiday pay typically amounting to 12.5% of the employee's gross annual salary.
Pension Contributions: Employers must contribute to a pension scheme, often through collective agreements. The typical contribution rate is around 12-18% of the employee's salary, shared between the employer and the employee.
Health Insurance: While Denmark's healthcare system is tax-funded, many employers offer supplementary health insurance to cover additional health-related expenses.
Unemployment Insurance: Employers contribute to the Danish labour market fund, which supports unemployment benefits for workers.
Work Injury Insurance: Mandatory insurance covers employees in case of work-related injuries, providing compensation and medical care.
Generally, probation periods in Denmark are 3 months
Emerald Technology can onboard employees in Denmark within 48 hours.
In Denmark, restrictive covenants are legally recognised but must meet specific conditions to be enforceable. Common types include:
Non-Competition Clauses: These prevent employees from working with competitors or starting a competing business for a certain period after leaving the company. They are typically valid for up to 12 months and must be reasonably limited in scope and geography.
Non-Solicitation Clauses: These restrict former employees from soliciting the company’s clients or employees. Non-solicitation of employees can be valid for up to 12 months, while non-solicitation of clients can be valid for up to 6 months.
Confidentiality Agreements: These require employees to keep proprietary company information confidential during and after employment. Confidentiality agreements can be indefinite in duration but must be clear about what constitutes confidential information.
To be enforceable, these covenants must be clearly defined, reasonable in terms of duration and geographical scope, and often require compensation for the restricted period. The validity and enforceability of such covenants are typically governed by the Danish Act on Employment Contracts.”
In Denmark healthcare is publicly funded by the taxpayer meaning employees don’t have a compulsory fee to pay per employee. However, the employer and employee tax contributions will help fund Denmark’s Welfare Fund, thus funding healthcare indirectly. Often Danish employers will offer private healthcare healthcare cover as an employee benefit.
Employers in Denmark are obligated to make contributions to 7 types of social security schemes.These include the pension finance scheme, maternity leave fund and industrial injury insurance. These costs are relatively modest in relation to other countries, with average social security cost being approximately EUR 2,100 per annum per full-time employee.
In Denmark, women are given 14 weeks of maternity leave, with an additional 4 weeks prior to the due date. 50% of the individual’s salary will be paid by the employer, which can be reimbursed by the Danish Maternity Fund.
Fathers are entitled to 2 weeks of paid paternity leave in the first 14 weeks post-birth.
Following the first 14 weeks, parents are entitled to 32 weeks shared parental leave, which can be extended to 46 weeks, with benefits and payments predominantly decided contractually with the employer.
In Denmark, employees get paid 100% of their salary for a minimum of 30 days sick leave (up to DKK 4,465 per week). After 30 days, the employer is no longer responsible for paying the salary, and social security benefits take over. These social benefits can last for up to 22 weeks. Additionally, after 120 days of illness, the employer is entitled to terminate the employee’s contract.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Length of service | Notice Period |
| < 6 months | 1 Month |
| > 6 Months | up to 6 months |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Length of service | Severance |
| Employees over 50 years of age with at least 12 years of service | 1-3 months’ salary |
Annual leave entitlement in Denmark is 25 days for employees
New Year’s Day
Maundy Thursday
Good Friday
Easter Sunday
Easter Monday
Ascension Day
Whit Sunday
Whit Monday
Christmas Day
Second Day Of Christmas
There is no mandatory minimum wage in Denmark, but wages are often determined through employer-employee bargaining and supported by various trade unions.
The typical working week in Denmark is 37 hours.
Workers in Denmark typically receive pay at a rate of 150% if they work up to three hours over the standard eight-hour day. If their excess work is more than three extra hours, they can receive compensation at a rate of 200%.
Salaries are paid monthly.
There is no legal requirement for any type of bonus to be paid, however many employers will introduce performance-based bonuses or occasionally provide a Christmas bonus.
For 2024, Denmark’s income tax brackets are structured progressively. Here’s a summary of the key brackets:
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