Talent Wiki - Denmark
Your quick guide on talent and labor compliance norms in Denmark
Capital
Copenhagen
Currency
Danish Krone (DKK)
Languages
Danish
Payroll Frequency
Monthly
GDP per Capita
$65,713.41
Employer Tax
13,921.6 DKK
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 20222 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, Engineers, Medical Consultants, Software developers.
Local Universities
The top local universities in Denmark are as follows:
Københavns Universitet
Ranking
Local: 1
World: 131
Aarhus Universitet
Ranking
Local: 2
World: 220
Danmarks Tekniske Universitet
Ranking
Local: 3
World: 360
Aalborg Universitet
Ranking
Local: 4
World: 464
Syddansk Universitet
Ranking
Local: 5
World: 508
Salary Data
The table below shows the average monthly salaries of some jobs in Denmark:
| Job Title | Average Monthly Salary (DKK) | Average Monthly Salary (USD) |
| Accounting Manager | 60,500 | 8600.14 |
| Office Manager | 33,300 | 4733.63 |
| Business Analyst | 52,200 | 7420.28 |
| Business Development Manager | 62,500 | 8884.44 |
| Project Manager | 43,100 | 6126.71 |
Talent Sourcing Tips
Top Local Job Boards
Jobindex.dk, WorkinDenmark.dk , Jobfinder.dk
Number of LinkedIn users
3,050,000
Multiplier Recruitment Partner
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 2023
| Date | Name | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 6 Apr | Maundy Thursday | National Holiday |
| 7 Apr | Good Friday | National Holiday |
| 9 Apr | Easter Sunday | National Holiday |
| 10 Apr | Easter Monday | National Holiday |
| 5 May | Prayer Day | National Holiday |
| 18 May | Ascension Day | National Holiday |
| 28 May | Whit Sunday | National Holiday |
| 29 May | Whit Monday | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
| 26 Dec | 2nd Day of Christmas | 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.
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.
Overtime Pay
There is no law regarding overtime pay in Denmark. Usually, it will be mentioned in the collective agreement.
Bonus
13th Month Pay
No legal provision for the 13th-month salary.
Employee Benefits
- Maternity Leave
- Paternity Leave
- Holiday Pay
- Holiday Supplement
- Pension Scheme
Taxes
Employer Payroll Tax
| 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
| Category | Amount (DKK) |
| Mandatory Pension Scheme (ATP) | 1,135.8 |
Employee Income Tax
| 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
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.
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.
The severance pay in Denmark is as follows:
| Duration of service | Severance |
| Upto 5 months | 1 month’s pay |
| 5 months – 2 years and 9 months | 3 month’s pay |
| 2 years and 9 months – 5 years and 8 months | 4 month’s pay |
| 5 years and 8 months – 8 years and 7 months | 5 month’s pay |
| More than 8 years and 7 months | 6 month’s pay |
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.
