Employer of Record in Denmark

Hire employees in Denmark

With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Denmark, without having to set up your own entity. No risk and fully compliant with HR support included

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What to know about Denmark

Denmark is a heaven for Remote Workers

Employer Tax

Fixed monthly allowance

Currency

DKK, Danish Korona

Available Employee Benefits

Medical insurance, Meal Vouchers

Employee Tax

Incremental up to 56.5%

Payroll Frequency

Monthly over 12 payments

Main Universities

University of Copenhagen, Aarhus University, Technical University of Denmark in Lyngby

Capital

Copenhagen

Population

Circa 5.9 Millions

Available Contracts

Fixed Term Contract, Indefinite/Permanent

Denmark is a place of choice for many digital nomads and remote workers, attracted by the quality of life in cities like Copenhagen. Its most famous child is probably LEGO but it is also home to thousands of innovative startups. Crunchbase particularly reports on recent success stories such as Sparrow Quantrum, Blue World Technologies or MedicQuant. NOMAD Employer of Record can help you hire anyone in Denmark. We will manage the local employment for your new employees, including employment contracts, Payroll, Taxes, Compliance, Visa and of course all this while giving expert HR support.

Payroll, Benefits & Tax in Denmark

Average Wage in Denmark is 46,000 DKK per Month, so 6,000 Euros

Employer Tax in Denmark is a fixed amount (although variable depending on the salary level). The different allowances to pay are:

Holiday Fund

Holiday pay

Education contributions

Financing contributions

Worker insurance

Pension…

Employee Tax in Denmark is incremental up to 56.5%:

Income Tax is at a flat rate of 8% for the income up to 50,762 DKK of annual income

Income Tax is then at a flat rate of 42.83% for the income between up to 545,000 DKK of annual income

Income Tax then steps to 56.5% for the income in excess of 545,000 DKK

Overtime hours in Denmark in excess of the usual 37 hours a week are compensated at 150% of the hourly rate, 200% on weekends

Payroll Frequency in Denmark is Monthly over 12 months

Maternity Leave in Denmark is up to 18 paid weeks. The Mother has to take 4 weeks before the birth date. once the 18 weeks used, an extra 32 weeks can be divided between both parents. During this time, leave is paid at 50% by the Social Security Fund.

Paternity Leave is 15 days or 2 weeks and can be taken any time until the child turns 4 months old. The salary during those 2 weeks will also paid at 50% by the Social Security Fund.

Parental Leave is unpaid and can be complex.

Sick Leave is covered for up to 26 weeks. The employer will pay 100% of the salary during the first 30 days then it will be covered by the Social Security fund at a fixed amount up to a maximum of 4,500 DKK per month

Statutory Leave is 25 days minimum per year.

Bank holidays: there are 11 national days in 2023 in Denmark, see here

Termination can only be done for a valid cause in Denmark, see below

Notice period is depending on the length of service of the employee in the business

The Danish Labour Code is setting the framework for employment in Denmark. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.