Hiring in Denmark: Complete Guide 2027
Everything you need to know about hiring and managing employees in Denmark
Overview
Denmark runs the lowest statutory employer on-cost in Western Europe. The employer's ATP pension is DKK 198 a month per full-time employee, and the levies billed through Samlet Betaling (AUB, AES, barsel.dk and the rest) add roughly DKK 15,000 a year: under 3% of a mid-level salary. The cost sits elsewhere. Five weeks of paid holiday under the Holiday Act, and an occupational pension of 8 to 12% that collective agreements, not the law, impose. There is no statutory minimum wage. An EOR quote for Denmark is only readable once it names the agreement it follows.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Denmark
Payroll in Denmark is monthly. It starts with a CVR number, then registration as an employer with Skattestyrelsen for eIndkomst, the monthly report that carries every employee's pay, A-skat and AM-bidrag. Statutory employer costs are fixed amounts, not percentages: ATP is DKK 297 a month per full-time employee, DKK 198 paid by the employer and DKK 99 by the employee, and the levies invoiced through Samlet Betaling (AUB, AES, the maternity fund barsel.dk) come to about DKK 15,000 a year. The employer withholds 8% AM-bidrag off the top, then A-skat per the employee's tax card: bottom-bracket tax of 12.01%, municipal tax averaging 25%, and two 7.5% brackets above thresholds indexed each year (the top one about DKK 777,900 after AM-bidrag). No statutory minimum wage. An EOR files eIndkomst, pays ATP and Samlet Betaling, runs the holiday account (FerieKonto or an approved scheme) and the pension of whichever agreement it applies.
Key Labor Laws &
Requirements
Employment Contracts
- Written terms within 7 days of the start
- Probation up to 3 months, 14 days' notice
- No statutory minimum wage: pay floors sit in collective agreements
Leave & Time Off
- 5 weeks paid holiday, 2.08 days a month from 1 September
- Full salary during sickness for salaried staff
- Parental leave: 24 weeks per parent, 9 earmarked
Termination Rules
- Employer notice 1 to 6 months by tenure, to month end
- Employee notice 1 month
- Severance 1 to 3 months' pay after 12, 15 and 17 years
COMPLIANCE
Collective Agreements and the Salaried Employees Act in Denmark
Most office hires fall under the Salaried Employees Act (Funktionærloven). Employer notice is 1 month during the first 6 months, then 3 months, rising by a month at 3, 6 and 9 years of service to a cap of 6, to the end of a month; the employee gives 1 month. Probation runs up to 3 months with 14 days' notice. Severance under section 2a is 1, 2 or 3 months' pay after 12, 15 or 17 years. Sick pay is full salary. Written terms are due within a week of the start (2023 act). Pay floors, the 37-hour week and the 8 to 12% pension come from collective agreements, and a firm hiring out staff to a client is a temporary-work agency under the Act on Temporary Agency Workers, with equal treatment. Ask which entity signs and which agreement applies.
Key Challenges
- No statutory minimum wage: pay floors sit in collective agreements
- Holiday Act: 5 weeks accrued at 2.08 days a month, holiday year from 1 September
- Employer notice up to 6 months after 9 years under the Funktionærloven, to month end
- The 8 to 12% occupational pension in agreements is the real on-cost, not statute
- Non-EU hires need the Pay Limit Scheme (about DKK 514,000 a year) or a Fast-track certified employer
Country Highlights
Advantages
- Statutory employer on-cost under 3%: ATP of DKK 198 a month plus fixed levies
- English is the working language in most offices
- Employee notice is one month under the Funktionærloven, probation three months
- Open public registries: a CVR lookup is free
- Pharma, wind and software clusters around Copenhagen and Aarhus
Popular Industries & Roles
Technology
Avg. Salary: DKK 550k-DKK 850k
Copenhagen and Aarhus hold the software, fintech and games studios; English is the working language in most of them
Life Sciences & Pharma
Avg. Salary: DKK 500k-DKK 800k
The Medicon Valley cluster around Copenhagen employs scientists, regulatory staff and clinical roles for pharma and biotech
Renewable Energy & Engineering
Avg. Salary: DKK 480k-DKK 750k
Wind turbine makers and their suppliers in Jutland hire engineers for design, service and offshore projects
Top 3 Providers in Denmark
Based on our analysis of pricing, compliance record, service quality, and customer reviews
GTS Nordic
- Nordic EOR — Denmark, Sweden, Norway, Finland, US
- Tri-party model for agencies and end-clients
- Custom per-contractor pricing
- Founded 1999; Fast-Track work permit certified
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Frequently asked questions
Hiring in Denmark through an EOR, in short.
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How much does an employer pay on top of salary in Denmark?
Employer contributions in Denmark come to ≈2–4%; the largest mandatory line is Holiday pay 12.5%. With the other statutory benefits and a typical EOR fee, budget ~12–25% on top of gross salary.
What does an EOR charge per employee in Denmark?
Published EOR fees in Denmark run $500–900/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Denmark pay in tax and contributions?
Income tax is 8% AM + 37–60% and employee social contributions are DKK 99/mo ATP (8% AM-bidrag), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Denmark?
2-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Denmark?
GTS Nordic, Deel and Remote hold the first three places in our ranking for hiring in Denmark. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Denmark.
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