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hire in Denmark

Denmark PEO &
Employer of Record

CAPITAL CITY                             Copenhagen

CURRENCY                                Danish Kroner (DKK) 

PAYROLL CYCLE                       Monthly 

CONTRACT LANGUAGES       English / Danish 

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Denmark

Horizons provides compliance solutions to ensure your business in Denmark operates in line with Denmark labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Denmark in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as an Denmark Employer of Record, absorb all local employer liabilities. Partnering with our Denmark PEO is the quickest and most cost-effective way to enter the Denmark market. 

Facts & Stats

PEO Platform Hire in Denmark, and pay employees through our platform or app. PEO Cost Our Denmark PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in Denmark, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Danish labor law. Local Benefits We administer all mandatory benefits and contributions in Denmark. 180+ Countries It doesn’t stop with Denmark — we are an international PEO
stay compliant with Denmark labor laws

Employment Laws

Employment contracts in Denmark

It is not mandatory, but we strongly recommend providing formal contracts of employment for all of your employees in Denmark. These contracts should be written in Danish, use the Danish kroner, and include all relevant details such as maternity leave, vacation allowance, salary/wage, expected working hours, and so on.

Many employee rights in Denmark are not centrally mandated but are negotiated via collective bargaining agreements (CBAs), so you may need to negotiate with trade unions or employee representatives when writing up your employment contracts, or adhere to pre-negotiated industry norms.

By partnering with our Denmark PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term (max. 24 months)
Probationary period3 months
Termination notice periodDuring probation: min. 14 days
0 to 6 months employment: min. 1 month
6 months to 3 years employment: min. 3 months
3 to 6 years employment: min. 4 months
6 to 9 years employment: min. 5 months
9+ years: min. 6 months

The effective termination date is end of the month following expiration of the notice period

SeveranceNot applicable
Important noteAfter 24 months on a fixed-term contract, the fixed-term contract automatically converts to an indefinite contract

 

Indefinite
Probationary period3 months
Termination notice period

During probation: min. 14 days
0 to 6 months employment: min. 1 month
6 months to 3 years employment: min. 3 months
3 to 6 years employment: min. 4 months
6 to 9 years employment: min. 5 months
9+ years: min. 6 months

The effective termination date is end of the month following expiration of the notice period

SeveranceOnly applicable when an employee has 12+ years’ service to one employer

Working hours in Denmark

The standard working week in Denmark is generally limited to 37.5 hours per week, and employees must be given one full 24-hour rest period every week. Overtime compensation is set by CBAs, so you must be sure to understand the specifics of your situation when hiring.

The maximum working week including overtime is usually 48 hours.

Hire compliantly in Denmark without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Denmark

As with many employment terms, Denmark’s annual holidays are set by CBAs, so can vary from role to role. However, the main holidays, which many workers receive paid leave for, are:

Denmark has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
28 Mar, 2024Maundy Thursday
29 Mar, 2024Good Friday
1 Apr, 2024Easter Sunday
2 Apr, 2024Easter Monday
1 May, 2024Labor Day / May Day
9 May, 2024Ascension Day
17 May, 2024Great Prayer Day
19 May, 2024Whit Sunday
20 May, 2024Whit Monday
5 Jun, 2024Constitution Day
25 Dec, 2024Christmas Day
26 Dec, 20242nd Christmas Day

 

Denmark vacation leave

Employees in Denmark are entitled to a minimum of 25 days of paid vacation leave per year after they have been with their employer for a full year. Newer employees can take 20 days of unpaid leave, and accrue 2.08 days of paid leave per month of employment. Up to five days of leave can be carried over to the following year.

Denmark sick leave

Employers in Denmark must cover employees for 14 days of absence through sickness. After 14 days and up to one year of absence, payments totaling 90% of normal salary are covered by the state up to a maximum of just over 3,000 kroner per week.

Parental leave in Denmark

Female employees in Denmark can take four weeks of maternity leave before childbirth, and 14 weeks after childbirth, with 50% of salary covered.

Male employees can take two weeks of paternal leave, also at 50% of normal salary, within 14 weeks of their child’s birth.

These payments are covered by the country’s social security system, not employers.

Both parents can also take up to 32 weeks of leave after this initial period of parental leave, and may be able to extend this even further in some cases.

Taxation in Denmark

Employees in Denmark must pay a range of taxes and contributions, including a social security contribution of 8% of gross income, a municipal tax which varies by locations, and a progressive state income tax. These taxes cannot exceed a total of 52.06% (as of 2020), but this does not include several other smaller taxes such as shares tax and church tax.

Health coverage in Denmark

Denmark’s healthcare is nationalized and of a very high standard, so employers do not need to offer private medical insurance. However, some do choose to as part of their benefits packages.

Terminations and severance in Denmark

Termination terms in Denmark can vary depending on the individual agreements made by employees or their representatives. Many people are covered by the Salaried Employees Act, under which:

  • Employees of up to two years and nine months = Three months of notice
  • Employees of up to five years and eight months = Four months of notice
  • Employees of up to eight years and seven months = Five months of notice
  • Above eight years and seven months = Six months of notice

Severance entitlements are handled similarly, with employees of more than 12 years entitled to one month of salary, employees of more than 15 years entitled to two months of salary, and employees of more than 18 years entitled to three months of salary.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Denmark PEO can mitigate risk for foreign companies and provide guidance through this process.

hassle-free Denmark compensation & benefits

Compensation & Benefits

Compensation laws in Denmark

There is no nationally standardized minimum wage in Denmark, but the most common rate across the county is around 1,600 EUR per month. This can vary depending on specific CBAs, so you must understand the relevant rules for your situation when hiring employees in Denmark

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Denmark

Many employers in Denmark choose to offer their employees benefits packages, including things such as extra pension contributions, a company car allowance, paid vacation days, a holiday bonus, and so on. However, setting up a benefits system in Denmark can be difficult if you are not familiar with the country’s complicated labor laws, language, and administrative norms.

Horizons can help you simplify this stage of your expansion by offering tailored Denmark PEO & benefit management outsourcing. Our experts will advise you on the best course of action and take care of your benefit setup and management, helping you focus on the important job of your Danish expansion.

Hire in Denmark in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Denmark PEO and a Denmark EOR are two types of companies which specialize in providing human resources services to businesses in Denmark.

The main difference between a Denmark PEO and a Denmark EOR is in the scope of their services.

Denmark PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Denmark PEO is essentially outsourcing your HR duties in Denmark.

Denmark EORs actually take over as the legal employer of your employees based abroad. Denmark EORs become responsible for labor compliance for your employees in Denmark.

At Horizons, we offer both PEO and EOR services in Denmark. Get in touch now and let us know what service you are seeking.

A PEO in Denmark can feasibly hire both local and foreign nationals to work in Denmark.

However, the ability of Horizons to sponsor your foreign national employee in Denmark may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Denmark PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Denmark.

It is possible to get a work visa in Denmark. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Denmark are limited, however—get started today to secure your employees’ visa spot.