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Global Expansion Guide

Denmark

Manage and pay your employees easily with BIPO in Denmark and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Danish Krone (DKK)
employment guide_language

Language

Danish

employment guide_capital

Capital

Copenhagen

Employer of Record Denmark

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Denmark

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Employer of Record Denmark

Embark on your business expansion in Denmark with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Danish market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 1 June 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

In Denmark, employers must provide a written employment contract to employees who have been employed for more than 1 month and whose average working time exceeds 8 hours per week. Where applicable, the contract must also specify the relevant collective bargaining agreement.

The employment contract should include, at a minimum, the following information:

  • Names and addresses of both the employer and employee;
  • Place of work, or a statement that work is performed at multiple locations or without a fixed workplace;
  • Job title, position, or description of duties;
  • Employment commencement date;
  • Duration of employment, where the contract is not for an indefinite term;
  • Paid leave entitlements;
  • Notice periods applicable to both parties;
  • Salary and any additional remuneration or benefits, such as pension contributions, accommodation, or meals;
  • Salary payment frequency and method;
  • Normal daily or weekly working hours;
  • Rules governing overtime work and work scheduling;
  • Arrangements for determining working hours, where applicable;
  • Training entitlements provided by the employer;
  • Applicable collective bargaining agreement, if any; and
  • Information regarding social security institutions and the employee’s social security coverage.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Social Security Type Working Hours Employee Contribution Employer Contribution
State Pension Tax-financed, universal pension
Occupational Pension Fixed % x income (subject to collective agreements and contracts)
Supplementary Pension ≥117 hours/month DKK 99.00 DKK 198.00
78-117 hours/month DKK 66.00 DKK 132.00
39-78 hours/month DKK 33.00 DKK 66.00
<39 hours/month – –
Medical Insurance Tax-financed, universal medical insurance
Unemployment Insurance Fixed monthly fee, voluntary
Occupational Injury Insurance – – Fully borne by employer
Labour Market Tax – 8% x income –

Notes

  • Denmark operates a comprehensive social welfare system funded primarily through taxation. The system provides broad social security coverage, places relatively limited contribution obligations on individuals, and emphasises universal access to benefits and public services.

  • In addition to statutory social insurance programmes, a wide range of public benefits and services are financed through taxation, including:

    • Maternity, paternity, and parental benefits;
    • Subsidised childcare services;
    • Free or heavily subsidised primary, secondary, vocational, and higher education;
    • Student grants and educational support schemes;
    • Mental health and youth support services;
    • Unemployment, disability, and sickness benefits;
    • Housing and rental assistance programmes;
    • Elderly care and social support services;
    • Public libraries and community facilities;
    • Public transport subsidies;
    • Cultural, sports, and association funding;
    • Public road and motorway infrastructure; and
    • Essential public services, including policing, the judicial system, and national defence.

Minimum Wage

Denmark does not have a statutory national minimum wage. Wage levels are primarily determined through collective bargaining agreements and individual employment contracts.

Public Holidays

The public holidays listed below are national public holidays observed across Denmark. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Easter Sunday
  • Easter Monday
  • Ascension Day
  • Pentecost
  • Whit Monday
  • Christmas Eve
  • Christmas Day
  • Boxing Day

Notes

  • There is no statutory requirement for a compensatory day off if a public holiday falls on an employee’s scheduled rest day.
  • Overtime compensation: No uniform statutory standard applies; compensation is generally governed by applicable collective bargaining agreements and individual employment contracts.

Working Hours

Normal Working Hours

Daily Weekly
Not stipulated

37 hours in most regions

(Subject to collective agreements and employment contracts)

Maximum average 48 hours

(Reference period: 4 months)

Work Break

Employees working more than 6 hours per day are entitled to appropriate rest breaks in accordance with applicable workplace policies and general guidelines.

Daily Rest

A minimum of 11 consecutive hours of rest must be provided within each 24-hour period.

Weekly Rest

Employees are entitled to at least 24 consecutive hours of rest per week.

Overtime Compensation

No uniform statutory standard applies; overtime compensation is generally determined by applicable collective bargaining agreements and/or individual employment contracts.

Exemptions from Overtime Compensation

  • Collective agreements may permit individual opt-in arrangements allowing employees to exceed the standard 48-hour average weekly working time limit, subject to a maximum of 60 hours per week. The reference period is 4 months, extendable up to a maximum of 12 months where provided in the collective agreement.
  • Such arrangements typically apply only to employees in key functions or roles covered by collective agreements (including local agreements) relating to on-call or duty-based systems.
  • Employees may withdraw their consent at any time, subject to a reasonable notice period, and must not be subjected to any adverse treatment as a result of such withdrawal.

Leave

Annual Leave

  • Type of employer: Single employer system
  • Leave year: 1 September to 31 August of the following year

  • Entitlement and accrual: Employees are entitled to 5 weeks of annual leave per leave year, accrued as follows:

    • Employed for ≥1 month: 2.08 days of annual leave per month of employment
    • Employed for <1 month: 0.07 days per day worked, capped at 2.08 days

  • Allowance:

    • Employees entitled to full pay during public holidays and sick leave (typically employed monthly or longer): Full pay plus a leave allowance equivalent to 1% of salary, paid by the employer
    • Employees not meeting the above criteria: 12.5% of salary is accrued as holiday pay, administered through the Danish holiday pay system and disbursed upon leave entitlement
  • Encashment: Any unused annual leave must be fully compensated upon termination of employment

Sick Leave

  • Eligibility: Private-sector employees; employers may require a medical certificate for sick leave exceeding 14 days
  • Duration: No statutory maximum, subject to contractual terms. Employment contracts may provide that termination with 1 month’s notice is permitted if the employee has received sick leave benefits for 120 accumulated days within a 12-month period

  • Eligibility for sick pay allowance: Employees must generally meet all of the following conditions:

    • Absence due to illness or injury
    • Residence in Denmark or coverage under EU social security coordination rules
    • Tax residency in Denmark
    • Fulfil relevant employment conditions
    • Minimum absence of 4 hours per week

  • Employer-paid period (first 30 days): One of the following must be met:

    • Continuous employment of at least 8 weeks prior to sick leave with at least 74 working hours; or
    • Multiple employments totalling at least 74 hours in the 8 weeks prior to sick leave, with employment status active on the first day of illness

  • Government-paid period (after 30 days): One of the following conditions must be met:

    • At least 240 hours worked in the past 6 months, including at least 40 hours per month in 5 of those months; or
    • Eligibility for unemployment benefits if not ill; or
    • Completion of at least 18 months of vocational training; or
    • Participation in internship or training programmes; or
    • Employment in a flexi-job arrangement

  • Allowance:

    • First 30 days: Paid by the employer
    • Thereafter: Paid by the government
    • Standard entitlement: Up to 22 weeks within a 9-month period, with possible extension subject to assessment
    • Maximum rate: DKK 137.43 per hour (2026 standard)

Parental Leave (Maternity Leave)

  • Eligibility: Private-sector employees, including mothers, fathers, and same-sex partners
  • Duration (For Mothers):
Leave Type Duration Transferable
Prenatal Maternity Leave 4 weeks No
Postnatal Maternity Leave 2 weeks No
Early Parental Leave 8 weeks (to be used within 10 weeks after childbirth) Yes
Exclusive Parental Leave 9 weeks (to be used within 1 year after childbirth) No
Shared Parental Leave 5 weeks (to be used within 1 year after childbirth) Yes
  • Duration (For Fathers):
Leave Type Duration Transferable
Paternity Leave 2 weeks No
Exclusive Parental Leave 9 weeks (to be used within 1 year after childbirth) No
Shared Parental Leave 13 weeks (to be used within 1 year after childbirth; extendable until the child turns 9) Yes

  • Eligibility for parental leave allowance:

    • Must have an active employment relationship on or before the first day of leave
    • At least 160 hours worked in the 4 full calendar months preceding leave
    • At least 40 hours worked per month in 3 of those 4 months

  • Allowance:

    • Full pay: Salary paid by the employer
    • Partial pay: Employer-paid salary supplemented by government allowance up to statutory limits
    • Unpaid leave: Government allowance provided where applicable
    • Maximum government allowance: DKK 137.43 per hour (2026 standard)

Other Leave Types

  • Care leave: Applicable to private-sector employees for care of seriously ill relatives; up to 5 days per year; unpaid
  • Other leave entitlements: Subject to applicable collective bargaining agreements and individual employment contracts

Termination and Compensation

Notice Period

Termination by Employer

  • Less than 6 months of service: 1 month’s notice, effective at the end of a calendar month
  • 6 months or more of service: 3 months’ notice, effective at the end of a calendar month
  • The notice period increases by 1 additional month for every 3 years of continuous service, up to a maximum of 6 months
  • During a probationary period (up to 3 months): 14 days’ notice
  • Where employer-provided accommodation is involved: 3 months’ notice applies, and the employee may remain in the accommodation for up to 1 additional month after termination

Resignation by Employee

  • 1 month’s notice, effective at the end of a calendar month
  • A longer notice period may be agreed contractually, provided the employer’s notice period is extended correspondingly

Compensation

Service Compensation

  • Employees who have completed long periods of continuous service with the same employer may be entitled to statutory severance compensation:

    • At least 12 years of continuous service: 1 month’s salary
    • At least 17 years of continuous service: 3 months’ salary

Compensation for Unfair Dismissal

  • Compensation may be awarded in cases of unfair dismissal, subject to the circumstances of the case. Typical statutory thresholds include:

    • General entitlement: Up to 50% of the salary payable during the applicable notice period
    • Employees aged 30 or above: Up to 3 months’ salary
    • Employees with at least 10 years of service: Up to 4 months’ salary
    • Employees with at least 15 years of service: Up to 6 months’ salary

Compensation for Breach of Contract

  • Employer breach: Compensation is generally limited to the salary that would have been payable during the notice period, or up to 3 months’ salary, depending on the circumstances.
  • Employee breach: Compensation is generally limited to 0.5 month’s salary.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Danish regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to Denmark’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Denmark’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Denmark

Unlock your growth potential with BIPO’s Employer of Record service in Denmark. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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