Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Denmark

Your quick guide on talent and labor compliance norms in Denmark
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Capital
Copenhagen
Currency
Danish Krone
Languages
Danish
Payroll Frequency
Monthly
GDP per Capita
$70,769
Employer Tax
13,921.6 DKK

Supplementary Guide for Employment and Expansion in Denmark

Talent Overview

Denmark, a notably advanced country with a high standard of living, ranks among the top spots in education, health care, civil liberties, democratic governance, and other areas. The country follows a mixed economy. An agriculture-focussed country earlier, Denmark now has over 75% of its GDP coming from the service sector. The 2022 GDP per capita of Denmark ranks in the 10th position. Major industries of Denmark include wind turbines, pharmaceuticals, medical equipment, machinery, tourism, transportation equipment, food processing, and construction.  

Major economic hubs:

Copenhagen, Aarhus, Odense, Aalborg

Skills in demand :

Construction skills, energy-related jobs, electrical engineers, medical consultants, doctors, dentists, pharmacists, Software developers.

Local Universities

The top local universities in Denmark are listed below:

Københavns Universitet (University of Copenhagen)

RANKING

Denmark : 1

World : 145

Aarhus University

RANKING

Denmark : 2

World : 223

Danmarks Tekniske Universitet (Technical University of Denmark)

RANKING

Denmark: 3

World : 402

Syddansk Universitet (University of Southern Denmark)

RANKING

Denmark : 4

World : 538

Aalborg Universitet (Aalborg University)

RANKING

Denmark : 5

World : 619

Salary Data

The table below shows the average monthly salaries of some jobs in Denmark.

Job Title Average Salary (DKK) Average Salary (USD)
Accounting Manager 60,500 9018
Office Manager 33,300 4963.63
Business Analyst 52,200 7780.82
Business Development Manager 62,500 9316.12
Project Manager 49,500 7373.36

Talent Sourcing Tips

Top Local Job Boards:

Jobindex.dk, WorkinDenmark.dk , Jobfinder.dk

Number of LinkedIn users:

2.94 million (2022 data)

Multiplier Recruitment Partner:

iXceed

Employing in Denmark

Collective trade union agreements and individual employment contracts govern the working conditions in Denmark. Employees are generally of two categories: Salaried and non-salaried. The first category includes high-skilled jobs and is paid a monthly salary. The second category is comparatively low-skilled and is paid on an hourly basis. Read forward to gathering more information on the work-related aspects prevalent in Denmark.

Employee Contract

The employment contract can be written in any language understandable to the parties involved and has no statutory language requirement. 

Probation period

The usual probationary period followed in Denmark is from one to three months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
14 Apr Maundy Thursday National holiday
15 Apr Good Friday National holiday
17 Apr Easter Sunday National holiday
18 Apr Easter Monday National holiday
1 May Labor Day / May Day Private Sector Holiday
13 May Great Prayer Day National holiday
26 May Ascension Day National holiday
5 Jun Whit Sunday National holiday
5 Jun Constitution Day Private Sector Holiday
6 Jun Whit Monday National holiday
25 Dec Christmas Day National holiday
26 Dec 2nd Christmas Day National holiday

Employee Leaves

Type of Leave Duration Mandatory
Annual Leave 25 days Yes
Sick Leave 30 days Yes
Maternity Leave 18 weeks Yes

Payroll

Payroll Cycle

The employee must be paid at the end of each month.

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Minimum Wage

Denmark does not have a statutory minimum wage. However, the common minimum wage would be DKK 110 per hour.

Under the pay-limit scheme for 2022, the minimum gross annual salary is 448,000 DKK.

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Overtime Pay

There is no law regarding overtime pay in Denmark. Usually, it will be mentioned in the collective agreement.

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Health Examination Clause

Bonus

13th Month Pay

No legal provision for the 13th-month salary.

Employee Benefits

  • ~Maternity Leave
  • ~Paternity Leave
  • ~Holiday Pay
  • ~Holiday Supplement
  • ~Pension Scheme
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Taxes

Employer Payroll Tax

The employer payroll tax is calculated as follows:

Category Amount (DKK)
Pension Scheme 2,271.6
Maternity fund 1,350
Industrial injuries insurance, estimated * 5,000
Other public social security schemes, partly estimated 5,300

*Please be informed that the estimated industrial injuries insurance may vary.

Employee Payroll Tax

The employee payroll tax is calculated as follows:

Category Amount (DKK)
Mandatory Pension Scheme (ATP) 1,135.8

Employee Income Tax

Income tax is levied annually as follows:

Taxes Income Basis Tax Rate
State taxes:
Bottom tax Personal income 12.10
Top tax (for the part of the top tax base exceeding DKK 552,500) Personal income 15.00
Local taxes:
Municipal tax (average) Taxable income 24.982
Labor market tax Personal income 8.00
Share tax:
DKK 0 to 57,200 (for married couple - 114,400 DKK) Share income 27.00
More than DKK 57,200 Share income 42.00

VAT

The standard VAT rate in Denmark is 25%

Offboarding & Termination

Termination Process

The Termination process in Denmark follows a fair procedure, as indicated by the Salaried Employees Act. Employees are protected from any unfair dismissal after 12 months of employment. Employers must have a justifiable reason for terminating an employee and give written notice about the decision. A collective trade union agreement often governs the dismissal of non-salaried employees. The notice period is usually shorter than in the case of salaried employees.

Notice Period

The notice period for employees during the probationary period is from 14 days to 30 days, while for permanent employees, it ranges from 14 days to 180 days.

Severance Pay

There is no statutory severance pay mentioned.

But, a salaried employee with more than a year of seniority and who is unfairly dismissed may be entitled to claim compensation. The compensation is decided considering the length of employment and the surrounding facts.

For those employees with seniority over 10 years, the severance pay can amount to 4 months' salary, while those with more than 15 years' seniority may be entitled to 6 months' salary.

Visa and Immigration

The visa and immigration requirements vary for different countries.

Citizens of nordic countries - Finland, Sweden, Iceland, and Norway, are free to stay and work.

EU/EEA/Swiss citizens - Need registration certificate at International Citizen Service or State administration on arrival.

Other nationals - need residence and work permits before entering Denmark.

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