Current Region & Language

Denmark

Employment in Denmark

Updated on: February 24, 2025

Currency

Danish Krone (DKK)

Employer Taxes

10.05% (inclusive of stat employer social security 8.6% and also holiday bonus 1% and 'Greater Prayer Day' 0.45%

Payroll Frequency

Monthly

Language

Danish

Date Format

DD/MM/YYYY

Denmark By The Numbers

5.9 million

Population

DKK 3 trillion

GDP

11

National Holidays

Country Information

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Weekly Working Hours

Regular weekly working hours is usually around 37 hour week as stipulated by most collective agreements and individual employment contracts. The maximum is 48 hours over a four month period. Due to their being no legislation dictating overtime pay rates, individual agreements should be checked. A typical rate is 50% of the employee's regular wage for the first 2-3 hours of overtime and 100% of the employee's regular wag for hours over this.

National Holidays

  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Easter Sunday
  • Easter Monday
  • Great Prayer Day
  • Ascension Day
  • Whit Monday
  • Constitution Day
  • Christmas Day
  • Boxing Day

Leave

Employees in Denmark are entitled to various types of leave, including holiday leave, sick leave, maternity leave, paternity leave, parental leave, and family care leave, ensuring they have the necessary time off for personal, family, and health-related matters.

Employment Contracts

Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws.

Types of Employment

Employees, temporary agency workers, and independent contractors are all recognized types of employment.

Employment Costs

10.05% (inclusive of stat employer social security 8.6% and also holiday bonus 1% and ‘Greater Prayer Day’ 0.45%.

IC Class Factors

A status assessment is a comprehensive process that requires considering various factors to determine the appropriate classification. Key considerations include analyzing the degree of control exerted over the individual, the level of subordination, exclusivity of the work relationship, the economic risk borne by the individual, their integration into the organization, whether work is subcontracted, and whether there is a right to substitution.

Labor Leasing

Temporary worker placement does not require a labor leasing licensing.

Minimum Wage Requirements

There are no general minimum wage requirements.

Medical Benefits

Employers must pay full salary to employees for the first 30 days of sickness. After the first 30 days, the employee can receive benefits from the local authority for up to 22 weeks.

Probationary Periods

There is a 3 months maximum for probationary periods.

Termination Notice

The notice period for termination is based on the length of employment. For employees employed up to six months, the notice period is one month. For those employed between six months and three years, the notice period is three months. From three to six years of employment, the notice period increases to four months. Employees with six to nine years of service are entitled to a five-month notice period. For those employed for over nine years, the notice period is six months.

Severance

There is no legal mandate for severence pay on a standard termination of employment. However, there may be specific situations where employees may become eligible for severence payments. If applicable and the employee becomes entitled to a severence payment this will be determined by a Collective Bargaining Agreement or a termination agreement with a negotiated severence between the parties.

Pre-hire Checks

In Denmark, certain checks are required or permitted under specific circumstances. Immigration and right to work checks are mandatory for foreign workers to ensure they are legally authorized to work. Criminal record checks can be justified by law, particularly for roles involving vulnerable populations such as working with children. Credit checks are allowed if required by law, often for roles involving financial responsibilities. Drug and alcohol testing is permitted only for specific roles where it is mandated by law, typically in situations where public health or safety is a concern. Health screening is allowed in limited circumstances, usually for roles that involve physical risks. Pregnancy tests are prohibited by law and cannot be conducted as part of employment procedures.

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