According to the World Happiness Report, Denmark is one of the happiest countries in the world and consistently tops their ranks.
Payroll and Benefits Guide - Denmark
Fun Facts
Cycling is one of the most popular sports among Danes. Bicycles outnumber cars in Copenhagen, the city’s capital.
Denmark is composed of more than 400 named islands, but only 70 of them are inhabited.
Denmark is one of the biggest producers of renewable energy.
The “Little Mermaid” statue is found in Copenhagen, Denmark.
It is known for its progressiveness ang high levels of gender equality.
Contributions
Employee Payroll Tax
| Social Security (ATP) | 1,135.80 DKK |
Employer Payroll Tax
| Public social security schemes | 5,300.00 DKK |
| Industrial injuries insurance | 5,000.00 DKK |
| Mandatory Social Security (ATP) | 2,271.00 DKK |
| Maternity Leave Fund | 1,350.00 DKK |
| Holiday Bonus | 1% |
Payroll
Payroll Cycle
Payroll in Denmark is given monthly on the same day of the month.
13th Salary
A 13th month salary is not required in Denmark, but bonuses are usually given by employers.
Work Hours and Week
The country has a 37-hour, Monday to Friday work week.
Overtime
Extra hours beyond 37 hours in a week are compensated at a rate between 150.00% and 200.00% of the employee’s regular pay rate. However, overtime pay is not always required.
Leave
Paid Time Off
Workers in Denmark are entitled to a minimum of 25 days of paid time off and are required to use a minimum of 20 days from it yearly.
Public Holidays
There are 12 public holidays in Denmark.
Sick Days
Employees are paid 100.00% of their rate for the first 30 days by their employers. The succeeding days are paid by the government but are subject to conditions.
Maternity Leave
Pregnant employees are given 18 weeks of maternity leave where the first two weeks after birth are mandatory. It starts four weeks before the due date.
Paternity Leave
Fathers may take a total of two weeks of leave within the first 14 weeks of the birth of their child.
Parental Leave
After the first 14 weeks of birth, parents could either prolong the leave by 8 to 14 weeks or take such leave some time until the child turns one.
Other Leave(s)
From ages 18 to 30, Danes may be required to take part on a compulsory military or civil service. Leave for such should be honored and not be subject to dismissal.
Termination
Termination Process
Employers have the right to terminate contracts for the reasons of either the business, worker, or personal misconduct. A warning must be issued for the employee to defend themselves.
Notice Period
Depending on length of service rendered, the notice period may range from 14 days to 6 months of notice with an allowance of the same amount.
Severance Pay
An employee is only entitled severance if they have been for one employer for at least 12 years.
Probation Period
Probation Period
The probationary period in the Denmark is outlined in the employment contract and is based on the kind of role.
Immigration
If a person is a citizen from the EU/EEA or Switzerland, upon entry into Denmark, one must apply for a registration certificate from the State Administration (Statsforvaltningen) or the Internation Citizen Service. If not, a residence and work permit is needed before entry.
VAT
The commonly used standard rate of VAT in Denmark is 25.00%