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Country Introduction
Capital – Copenhagen
Currency – Danish Krone (DKK)
Population – 5.8 Million
GDP – $350.1 Billion
Language – Danish
Major Religions – Christianity
Dialling Code +45
Denmark is a part of the northern European region known as Scandinavia. The country’s capital, Copenhagen, is located primarily on Zealand; the second largest city, Arhus, is the major urban centre of Jutland.
Denmark has been named the world’s happiest country on numerous occasions and remains to be in the very top of the UN World Happiness Report. First acknowledged in 1219, the Danish flag “Dannebrog” remains the oldest state flag in the world still in use by an independent nation. Denmark is also home to the world’s oldest amusement park, Bakken, as well as the second oldest, Tivoli Gardens.
Contract of Employment
Salaried employees (white collar workers) are subject to the Salaried Employees Act, which offers protection in relation to notice periods, severance pay, compensation for unlawful termination and maternity leave, among others.
It is required by law that employees are provided with a written contract after the start of their employment. Employees who are required to work at least eight hours a week on average, and whose periods of employment are intended to last a minimum of 1 month, must be notified in writing of all material employment terms. An offer letter and employment contract in Denmark should always state the salary and bonuses/benefits in Danish Krone (DKK).
Probation Period
There are no legal requirements for probation periods, however up to a maximum of 3 months is the generally accepted norm.
Termination
Salaried employees are entitled to a notice period of between one and six months, depending on seniority, when dismissed by the company. Where employees resign, they must provide the employer with one month’s notice.
Working Hours
37 hours per week, Monday to Friday.
Overtime
The average working hours within a seven-day period, as calculated over a period of four months, must not exceed 48 hours, including overtime work. There are no statutory regulations regarding overtime pay.
Annual Leave
Employees are entitled to a minimum of 25 days of paid annual leave, provided they have been with their employer for a full year. They also get 1% of their gross salary as a lump sum each May as a holiday allowance.
Sick leave
30 days of paid sick leave. This only apply if the employee has been continuously employed by the employer for the last eight weeks and has worked for at least 74 hours.
Maternity Leave
The Act on the Entitlement to Leave and Benefits in the Event of Childbirth, Consolidated Act No. 67 of 25 January 2019, regulates the right to leave and the right to receive child benefit from the municipality during leave related to childbirth. There is no general statutory entitlement for employees to receive salary during leave related to childbirth, but female salaried employees are entitled to receive 50% of their salary during pregnancy and maternity leave in accordance with the Salaried may follow from the individual employment agreement.
If an employer pays salary during leave related to childbirth, the employer may recover the cost, in full or in part, from the municipality and from the maternity fund.
The mother is entitled to the following leave:
– 4 weeks’ leave prior the expected date of birth.
– 14 weeks’ leave after the birth (the first 2 weeks after the birth are mandatory).
Female salaried employees are entitled to 50% of their salary during the above periods. Other employees are entitled to receive leave benefits from the Danish authorities, if the relevant conditions are met.
Paternity rights: A father or co-mother is entitled to a leave of absence of two consecutive weeks of paternity leave within the 14 weeks directly after the birth. There is no statutory right to salary. Employees are entitled to receive leave benefits from the Danish authorities.
VAT / GST:
25% VAT
Income Tax
| Taxable income bracket | Marginal tax rate including labour market tax | |
| From DKK | To DKK | Percentage |
| 0 | 50,543 | 8 |
| 50,543 | 577,174 | 38.9 |
| 577,174 | Over | 56.5 |
Employees are required to pay Labour Market Tax, Municipal Tax, State Tax, Share Tax and Church Tax as part of income tax.
Employer/Employee Contributions
The country’s social security program includes health insurance, child allowance, maternity benefits, disability benefits, and more. Both employees and employers contribute to this fund.
Employer: 930 – 1,388 DKK per month
Employee: 111.32 DKK per month
Public Holidays
There are 11 public holidays in Denmark.
– New Year’s Day
– Maundy Thursday
– Good Friday
– Easter Monday
– Easter Sunday
– General Prayer Day
– Ascension Day
– Whit Monday
– Constitution Day
– Christmas Day
– Second Day of Christmas
Severance Pay
There is no general statutory regulation on severance pay, but salaried employees who have been in continuous employment for between 12 to 17 years are entitled to a severance payment.
12 to 15 years – 1-month full pay
15 to 18 years – 2 months full pay
18+ years – 3 months full pay
Work and Residence Permits (Expatriates)
European Union (EU) and European Economic Area (EEA) citizens do not require a visa to live and work in Denmark. Citizens from EU and EEA need to make sure they meet the immigration criteria set out by the Danish Immigration Service and the Danish Agency for International Recruitment and Integration.
Citizens of countries outside of the EU or EEA will need to apply for a visa online. They will require documents such as a copy of their passport, employment contract, power of attorney form and proof of visa payment.
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