Denmark at a glance
Taxes in Denmark
Employer Contributions
| Contribution | Amount |
|---|---|
| Social security | DKK 8,000 – DKK 10,000 per year |
| Occupational injury insurance | DKK 1,176 – DKK 24,441 per year |
| Other employer contributions | DKK 1,076 – DKK 4,764 per year |
Denmark's employer social contributions are unusually low — most of the social burden falls on income tax paid by the employee.
| Contribution | Amount |
|---|---|
| Social security | DKK 8,000 – DKK 10,000 per year |
| Occupational injury insurance | DKK 1,176 – DKK 24,441 per year |
| Other employer contributions | DKK 1,076 – DKK 4,764 per year |
Denmark's employer social contributions are unusually low — most of the social burden falls on income tax paid by the employee.
| Contribution | Rate |
|---|---|
| Labour market contribution (AM-bidrag) | 8% |
| Pension contributions (ATP) | DKK 1,135 per year |
| Total employee income tax | 16% – 52.07% |
| Gross Income | Tax Rate |
|---|---|
| DKK 0 – 54,021 | 8% (AM-bidrag only) |
| DKK 54,022 – 640,109 | 43.8% |
| Over DKK 640,109 | 56.5% |
Income tax is progressive and includes state tax, church tax, and municipal tax.
Employer of Record in Denmark
How Remote& EOR Works
Remote& acts as the legal employer of your Danish workers, handling payroll, tax filings, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files A-skat, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Danish contract |
Ask Remi:
"Hire a growth marketer in Denmark — DKK 55,000/month, starting as soon as possible" Remi handles everything: contract, tax registration, payroll setup, and ATP enrollment.
Benefits in Denmark
- Health and safety protections (mandatory compliance with Working Environment Act)
- Additional annual leave (beyond 25 statutory days)
- Private pension fund contributions
- Career development and learning budget
- Flexible and remote working
- Hardware and phone allowance
- Massage / wellness benefits
- Performance bonus
- Private health insurance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 25 days + public holidays |
| Sick Leave | Unlimited paid sick leave |
| Maternity Leave | 18 weeks |
| Paternity Leave | 2 weeks |
| Parental Leave | 48 weeks paid leave (shared between parents) |
Employment conditions
Probation
A maximum 6-month probationary period was introduced in Denmark in 2023.
Business Transfer
In cases of business ownership changes, employees have the right to be informed and, to some extent, consulted. They generally must accept the new employer if working conditions do not worsen.
Employee Rights & Protections
Danish workers are entitled to: written employment contract, payslip, home office rights, health and safety protections, flexible work options, equal opportunity and pay, anti-discrimination protection, severance pay, and union membership.
Payments
End of employment in Denmark
Terminating employment in Denmark requires observing notice periods and providing reasonable justification for employees who have been employed for over 1 year. Written notice is not legally required but strongly recommended for documentation.
If the employee requests, the employer must provide sufficient written reasoning for termination.
Outstanding holiday leave must be paid to the employee's holiday fund.
Severance Pay:
- 12–17 years of employment: 1 month's salary
- Over 17 years of employment: 3 months' salary
Frequently asked questions
Four main routes: run payroll from HQ for short-term arrangements; engage contractors for project-based multi-client work; establish a Danish entity; or use Remote& as Employer of Record. Denmark's collective bargaining environment means careful attention to sector-specific agreements is essential — Remote& handles this.