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CAPITAL CITY                             Copenhagen

CURRENCY                                Danish Kroner (DKK) 

PAYROLL CYCLE                       Monthly 

CONTRACT LANGUAGES       English / Danish 

TIME TO HIRE 24 hours

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Hire Employees in Denmark — Overview

Denmark is a prosperous trading nation in Northern Europe. It is well known as a base in Europe for the ease of doing business there, and its highly-skilled local workforce. When hiring in Denmark it is important to check whether any Collective Bargaining Agreements apply, and which employment laws may affect the conduct of your business.

Facts & Stats


5.8M (2.9M Labor Force)

Capital City


Languages Spoken



Danish Kroner

GDP per capita


Ease of Doing Business

4th in the world

Minimum Wage

None (except as provided in Collective Bargaining Agreements)

Average Wage

44,500 DKK/month

Paid Leave

25-30 days

Denmark: Business Environment

Business outlook in Denmark

The Scandinavian nation of Denmark, is a popular place for international businesses seeking a foothold in the lucrative Northern European market. The country boasts a strong economy, high standard of living, and EU membership, all contributing to its attractiveness.

In 2019, Denmark’s GDP increased by 2.1%. While there was a brief downturn in 2020 due to the Pandemic, Denmark quickly bounced back in 2021, increasing in size by 4.7%. In 2022, Denmark’s GDP is estimated to grow 3% and in 2023 this is expected to remain stable. Considering global events, Denmark is peforming particular well.

According to the World Bank, Denmark is #1 in ease of doing business in Europe, and #4 in the world. This means an excellent business climate, and an attractive place to set up a business that will grant you access to the EU market.

Business regulation in Denmark

If your organization is contemplating a move to Denmark, we recommend enlisting professional help. The country is well-equipped for foreign business, however, you will need to understand the business and employment laws which apply there, and are determined by both national and EU-level policy.

It is not mandatory in Denmark to provide a formal employment contract, but writing a detailed employment contract is highly recommended. The contracts should be written in Danish, use the Danish Kroner, and include details such as maternity leave, vacation allowance, salary/wage, and expected working hours.

Many workers in Demark are part of collective bargaining agreements, so it is possible your business will need to negotiate with trade unions or an employee representative when writing an employment contract, or you will need to adhere to pre-negotiated industry norms.

Demark is an efficiently-run welfare state. Therefore there are multiple types of leave that employers will need to offer like sick leave, maternity/pregnancy leave, and paternity leave.

In Denmark, employees get paid 100% of their salary for a minimum of 30 days of sick leave. After 30 days the employer is no longer liable to pay the salary, and social security benefits will take over paying the employee. Social benefits will last for up to 22 weeks in Denmark. After 120 days of illness the employer is entitled to terminate the contract with the employee.

Maternity/pregnancy leave in Denmark is 14 weeks (4 before birth). 50% of the salary is paid by the employer for up to 5 months, and the employer can be reimbursed by the Danish maternity fund.

Paid paternity leave (second parent) in Denmark is 2 weeks within the 14 weeks after the child is born. The employee is paid by the maternity leave fund from the Danish government. Also, there is paid paternal leave that is 32 weeks that can be used until the child is 9 years old. This is also paid for by the Danish government maternity fund

Business culture in Denmark

The number one things to know about Danish business culture is there is a strong sense of equality within the workplace. There is low power distance between the different layers of the corporate hierarchy. Employees at each level talk with each other on equal footing, and each is respected the same. For example, a boss’ door is usually open, and the boss in Denmark is available to chat with the employees most times throughout the work day.

It is considered very fair to disagree with the boss, even within meetings. The Danish business culture is more relaxed than its European counterparts and therefore offering your opinion to those in higher level positions is always acceptable. Consensus amongst all employees involved is usually what companies seek to reach. If new or better information emerges, then Danish companies will innovate and change, instead of sticking to stubborn old habits.

Honesty is very important in Denmark. If you make a mistake it is expected that you own up to your mistake and fix it. Trying to hide mistakes will only make matters worse within the Danish business culture.

Recruiting employees in Denmark

Recruiting employees in Denmark – Overview

As in many other countries, Danish candidates generally use the internet as their primary tool for recruiters and job seekers.

Most important recruitment tools in Denmark

  • LinkedIn

    LinkedIn is a very popular website to seek Danish candidates. There are over 2.5 million Danish LinkedIn users, which is nearly 47% of its entire population. This goes to show, in Denmark, LinkedIn is widely popular.
  • Facebook

    Facebook is a much less traditional route to recruit in Denmark. However, there are still many candidates and job seekers who are looking for work on Facebook in Denmark
  • Jobindex  

    Jobindex is the most popular, solely Danish website for job seeker and job posters. If you are looking for only Danish candidates, then you will most likely find them from Jobindex.

Interviewing candidates in Denmark

Interviewing employees in Denmark​ – Overview

When interviewing candidates in Demark it is most important to follow all discrimination and harassment laws for employers in Denmark. For example, it is illegal to make a decision on a candidate based on gender, race, religion, or sexual orientation. Denmark has strict equality laws that protect the candidates rights to interview for a position without discrimination or harassment.

In addition, it is important to note that Denmark has a laid back business culture. For interviewing, it is important to make the candidate feel relaxed by asking questions about how they are and how their day is going.

Can I ask the candidate’s previous salary in Denmark?

In Denmark it is illegal to ask what the candidate’s previous salary was. You may ask what the candidate’s salary expectations are for the role you are seeking to fill.

What is the typical salary increase at a new job in Denmark?

Typically when an employee is changing jobs, or is being promoted, the salary increase will be around 10-20% in Denmark.

Onboarding employees in Denmark

Onboarding employees in Denmark – Overview

Employers in Denmark do not need to follow any particular procedures when onboarding new employees. However, it is always good to be clear about required duties, company culture, and entitlements and terms of each employee’s employment contract to avoid unintended disputes. In some instances, you will need to send company representatives to Denmark to help with the onboarding process.

Best remote working tools to use in Denmark

Remote working tools like Microsoft Teams, WebEx, and Monday all work in Denmark and are widely used. Danish candidates are well-educated and technologically advance and should be able to work off remote working tools you use with ease.

Holiday season in Denmark — 2023

Annual holidays in Denmark are sometimes set by the collective bargaining agreements within the trade unions, therefore the holiday season in Denmark could vary from role to role. However, typically public holidays in Denmark are:

Denmark has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
1 Jan, 2023 New Year’s Day
6 Apr, 2023 Maundy Thursday
7 Apr, 2023 Good Friday
9 Apr, 2023 Easter Sunday
10 Apr, 2023 Easter Monday
1 May, 2023 Labor Day / May Day
5 May, 2023 Great Prayer Day
18 May, 2023 Ascension Day
28 May, 2023 Whit Sunday
29 May, 2023 Whit Monday
5 Jun, 2023 Constitution Day
25 Dec, 2023 Christmas Day
26 Dec, 2023 2nd Christmas Day

What is the typical salary increase employees in Denmark expect?

The typical salary increase for employees in Denmark happens annually and it is usually between 5% and 7%.

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It depends on your hiring needs. If you are hiring for short-term or project-based work, a freelancer will often be appropriate. On the other hand, if you are after long-term, fulltime workers, it is usually necessary to hire individuals as an employee. This is where an Employer of Record (EOR) solution can be useful.

Yes, you can hire foreign workers in Denmark, however proper work permits to live and work in the EU will need to be obtained. Scandinavian and EU citizens can live and work in Denmark without needing a work visa.

There are two main corporation options in Denmark to open a subsidiary or branch office in Denmark. You can either set up an Aktieselskab (A/S) or Anpartsselskab (ApS). An A/S is similar to a public limited liability company, while a ApS is equivalent to a private limited liability company. Deciding between the two depends on your company’s needs, however small and mid-sized companies typically set up a ApS.

A/S companies must invest a minimum of DKK 500,000. Whereas a ApS will need to invest a minimum of DKK 40,000.

The function of hiring employees in Denmark is similar to most other European nations: You will advertise the job on a popular job website, conducts interviews, and hire and onboard your employees. In Denmark, there are a number of discrimination and harassment laws that protect equal rights during the interview, onboarding, and employment process —these are important to follow during the hiring process in Denmark.

If your company is not based in Denmark, you can either hire employees directly through a subsidiary (using the process outlined above), or use a Danish Employer of Record solution. This allows companies form outside Denmark to hire their via a professional third-party company that becomes the legal employer.

Hiring in Denmark, Made Easy

Your business can easily hire employees in Denmark without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

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