* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Danish Krone (Kr)



Employment Cost

8% - 56.5%

Annual Leave

5 Weeks

In-demand Specialties*
Information Technology And Software Development, Renewable Energy And Green Technology, Life Sciences And Biotechnology

The Ultimate Guide to Hiring Employees in Denmark

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Denmark

Employing in Denmark requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Denmark with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Denmark quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Employees in Denmark subject to a non-compete agreement are eligible for monthly compensation. The compensation is 40% of their monthly salary if the clause's duration is up to six months and 60% if the duration exceeds six months. This compensation is applicable for the entire duration of the non-compete agreement, starting from the termination of employment.

Denmark consistently ranks high in global happiness indexes. The Danish workplace culture values equality, transparency, and collaboration, fostering a sense of community among employees. This cultural aspect contributes to high job satisfaction levels and a harmonious work atmosphere.

The annual paid leave entitlement in Denmark is based on the employee's previous year's work. For each month worked in a calendar year, employees accrue 2.08 days of paid vacation leave, totaling 25 days for a full year's work, which they can utilize in the following year.

Denmark boasts one of the most generous parental leave policies globally. Parents are entitled to a combined total of up to 52 weeks of partially paid leave, providing ample support for the well-being of both parents and their children.


Fundamental Aspects of Employment in Denmark

Denmark, known for its progressive work culture and emphasis on a healthy work-life balance, offers a welcoming environment for businesses. When employing individuals in Denmark, there are several key hiring formalities to consider for the employment contract:

  • Employment Contract Terms
  • Probationary Period
  • Working Hours and Overtime
  • Non-Compete Clauses

Probationary Period in Denmark

The duration of the probationary period in Denmark varies based on the nature of the position and is specified in the employment contract. Typically, probation periods last up to 3 month

Working hours in Denmark

In Denmark, the standard working week for an employee typically consists of five days, with an average of 37.5 hours worked per week. As per the Working Time Directive Act, the maximum allowable working time is set at 48 hours per week, calculated as an average over a four-month period

Overtime in Denmark

Overtime hours exceeding 37 hours per week are subject to compensation at a rate ranging from 150% to 200% of the regular pay rate, depending on the provisions outlined in the applicable Collective Bargaining Agreement. It's important to note that the payment of overtime is not mandatory unless specified in a Collective Agreement.

Navigating Key Aspects of Payroll in Denmark

Denmark has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Denmark

1 January- 31 December is the 12-month accounting period that businesses in Denmark use for financial and tax reporting purposes.

Payroll Cycle in Denmark

The payroll cycle in Denmark is usually Monthly, with employees being paid By the last working day of the month.
242.1875 DKK p/h

Minimum Wage in Denmark

The minimum wage for employees in Denmark is typically 242.1875 DKK per hour, amounting to ~38,750 DKK per month for a typical 40 hour work week.

Minimum wages and salaries in Denmark

The minimum wage in Denmark is 242.1975 DKK

Bonus Payments in Denmark

In Denmark, it is not a legal requirement to pay a 13th-month salary payment.

Comprehensive Overview of Employment Taxes in Denmark

Understanding the tax obligations for both employers and employees is crucial when operating in Denmark's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Denmark.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8% - 56.5% on top of the employee salary in Denmark.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Denmark, the typical estimation for employee payroll contributions cost is around 1%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Income tax in Denmark is 'Pay As You Earn'. The individual income tax ranges from 8% to 56.5%. Income tax is calculated according to progressive rates.

Tax Rate Income Bracket

Pension in Denmark

Denmark's pension system integrates both public and private schemes to ensure retirees' financial well-being. The Basic State Pension, funded by taxes, offers a fundamental income upon retirement. Supplementary pensions, managed by private providers or pension funds, allow workers to enhance their retirement benefits. This comprehensive approach underscores Denmark's dedication to securing retirees' financial stability.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Denmark tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Denmark

When it comes to terminating employment in Denmark, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Denmark, Employers must provide a valid justification for terminating an employee to mitigate the risk of potential claims of unfair dismissal. Specifically, when terminating employees with over 12 months of service due to poor performance, it is crucial to adhere to a proper disciplinary procedure to reduce the likelihood of facing an unfair dismissal lawsuit.

  • Misconduct
  • Performance due to unsuitability for the job
  • Disciplinary dismissal
  • By mutual agreement

Notice Period

The minimum notice period is 2 weeks and will be increased according to the length of the employment.

  • Up to 3 months of employment - 2 weeks’ notice
  • Up to 6 months of employment - 1 month’s notice
  • Up to 3 years of employment - 3 months’ notice
  • Up to 6 years of employment - 4 months’ notice
  • Up to 9 years of employment - 5 months’ notice
  • Over 9 years of employment - 6 months’ notice

Severance Pay

In Denmark, there are typically no statutory requirements for severance pay. However, employees with continuous employment ranging from 12 to 17 years may be eligible for a severance payment, which can vary between one to three months.

Annual Leave Entitlements and Company Policies in Denmark

The annual leave entitlement in Denmark is 5 Weeks for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Denmark

Denmark has 11 mandatory national public holidays in a year.

Holiday Date

Paid Time Off in Denmark

Maternity Leave in Denmark

Paternity Leave in Denmark

Sick Leave in Denmark

National Military Or Civil Service Leave

Carer'S Leave

Parental Leave In Denmark

Denmark's Benefits Built Into Playroll

Competitive benefits package in Denmark

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Denmark's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Denmark

Make your benefits package in Denmark a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Denmark

Playroll allows you to provide localized benefits for employees in Denmark within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Denmark create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Denmark

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Denmark.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!