Payroll and Benefits Guide - Denmark

Denmark
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Currency

Danish Krone
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Capital

Copenhagen
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Employer Taxes

13,721 DKK + 1%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

According to the World Happiness Report, Denmark is one of the happiest countries in the world and consistently tops their ranks.

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.

Denmark

Contributions

Employee Payroll Tax

Social Security (ATP)1,135.80 DKK

Employer Payroll Tax

Public social security schemes5,300.00 DKK
Industrial injuries insurance5,000.00 DKK
Mandatory Social Security (ATP)2,271.00 DKK
Maternity Leave Fund1,350.00 DKK
Holiday Bonus1%

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.
Denmark

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%