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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

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
28 Mar Maundy Thursday National Holiday
29 Mar Good Friday National Holiday
31 Mar Easter Sunday National Holiday
1 Apr Easter Monday National Holiday
9 May Ascension Day National Holiday
19 May Whit Sunday National Holiday
20 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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration