Good to know
Local Currency: Danish Krone (DKK)
Minimum Salary: There is no national minimum wage in Denmark. Wages are generally set by collective agreements.
Wage rates set by collective agreements vary according to age (different wage rates for workers over and under 18), experience (higher wages for more experienced workers) and difficulty of work.
Salary Payment: monthly, daily, hourly and at piece rates.
Salary Calculation: gross to net
Legal Working Hours: 37 hours/week
About Denmark
Denmark is a Scandinavian country that includes the Jutland Peninsula and many islands, a total area of 2 210 579 km2. With a generous temperate climate due to its southern location compared to the rest of Scandinavia.
It has become one of the world leaders in developing many experiments in urban ecology for example the Ecovillage network. The goal of an ecovillage is to become more socially and ecologically sustainable than other communities.
Like the rest of Europe, Denmark is a post-industrial economy. Given the small size of its domestic market, the Danish economy depends heavily on foreign trade. Denmark exports its products afloat thanks to a dynamic specialized industry and its maritime and river transport, which are among the most important in the world. Several Danish companies have gained worldwide notoriety in specialized niches with steady growth.
Ready to Benefit from Danish HR & Payroll Experts?
Social Security System in Denmark
Danish social protection covers all risks (illness, maternity, work accidents and occupational diseases, disability, old age, survivors and unemployment). It also provides for family allowances for Danish residents. Unemployment insurance is not mandatory. The worker must take out voluntary insurance to receive daily allowances in the event of cessation of activity.
Administrative Organization
Danish social protection covers all risks (illness, maternity, work accidents and occupational diseases, disability, old age, survivors and unemployment). It also provides for family allowances for Danish residents. Unemployment insurance is not mandatory. The worker must take out voluntary insurance to receive daily allowances in the event of cessation of activity.
Administrative Organisation
The health care system is supervised by the Danish Health Autority (Sundhedsstyrelsen) and the Danish Patient Safety Authority (Styrelsen for Patientsikkerhed), while the five Danish regions and their municipalities share responsibility for health care. Daily sickness benefits are paid by the local authorities.
Social pensions, disability pensions, housing benefits, family benefits and cash benefits from the maternity insurance are administered by Udbetaling Danmark.
The occupational accident and disease insurance is managed partly by private insurers (only for occupational accidents) and partly by the Labour Market Insurance (LMI).
The administration of unemployment insurance benefits (voluntary insurance) is carried out by about 20 unemployment funds, private associations licensed by the state. At the national level, the Danish Agency for Labour Market and Recruitment (Styrelsen for Arbejdsmarked og Rekruttering) is responsible for legislation concerning unemployment insurance and oversees the implementation of employment policies.
Social Contributions in Denmark
Plan for employees
In Denmark, sickness, maternity, disability, old age and survivors’ insurance (social pensions) and family benefits are financed by taxes.
Employer and/or employee contributions are required for occupational accidents and diseases, supplementary pensions and unemployment. Finally, all workers are required to pay a contribution to the functioning of the labor market.
Employees contribute 8% of their gross wages. This contribution (arbejdsmarkedsbidrag) is used to finance labor market expenses.
For occupational accident insurance, the employer pays a premium to an approved private insurance fund. For occupational diseases, a contribution is levied by the Labor Market Insurance (AES). In both cases, the amounts paid vary according to the risk insured.
Participation in unemployment insurance is optional. The employee can join one of the state-approved unemployment insurance funds. These funds set a fixed contribution each year (1). The employer does not contribute to the unemployment insurance.
Finally, for the supplementary work-related pensions (ATP pensions), which are compulsory for people who work at least 9 hours a week, a monthly contribution of between DKK 94.65 and DKK 284 is due for each employee aged 16 or over. The contribution (2) is paid 1/3 by the employee and 2/3 by the employer.
(1) The contribution consists of a fixed part for the state (obligatorisk statsbidrag), which is the same for all funds and amounts to DKK 357 per month for a full-time insured employee, as well as a part individually determined by the unemployment fund to cover its administrative costs. Insured persons may also choose to pay an additional contribution to participate in an early retirement plan.
(2) Variable contribution according to the number of hours worked.
Collection
The employer is responsible for paying the labor market contribution (arbejdsmarkedsbidrag) to the Tax Office (SKAT) and transfers the contribution for occupational pensions to ATP Livslang Pension.
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Denmark.
Our Payroll and HR services in Denmark
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Denmark
HR & Payroll in Denmark
Good to know
Local Currency: Danish Krone (DKK)
Minimum Salary: There is no national minimum wage in Denmark. Wages are generally set by collective agreements.
Wage rates set by collective agreements vary according to age (different wage rates for workers over and under 18), experience (higher wages for more experienced workers) and difficulty of work.
Salary Payment: monthly, daily, hourly and at piece rates.
Salary Calculation: gross to net
Legal Working Hours: 37 hours/week
Ready to Benefit from Danish HR & Payroll Experts?
About Denmark
Denmark is a Scandinavian country that includes the Jutland Peninsula and many islands, a total area of 2 210 579 km2. With a generous temperate climate due to its southern location compared to the rest of Scandinavia.
It has become one of the world leaders in developing many experiments in urban ecology for example the Ecovillage network. The goal of an ecovillage is to become more socially and ecologically sustainable than other communities.
Like the rest of Europe, Denmark is a post-industrial economy. Given the small size of its domestic market, the Danish economy depends heavily on foreign trade. Denmark exports its products afloat thanks to a dynamic specialized industry and its maritime and river transport, which are among the most important in the world. Several Danish companies have gained worldwide notoriety in specialized niches with steady growth.
Social Security in Denmark
Danish social protection covers all risks (illness, maternity, work accidents and occupational diseases, disability, old age, survivors and unemployment). It also provides for family allowances for Danish residents. Unemployment insurance is not mandatory. The worker must take out voluntary insurance to receive daily allowances in the event of cessation of activity.
Administrative Organization
The health care system is supervised by the Danish Health Autority (Sundhedsstyrelsen) and the Danish Patient Safety Authority (Styrelsen for Patientsikkerhed), while the five Danish regions and their municipalities share responsibility for health care. Daily sickness benefits are paid by the local authorities.
Social pensions, disability pensions, housing benefits, family benefits and cash benefits from the maternity insurance are administered by Udbetaling Danmark.
The occupational accident and disease insurance is managed partly by private insurers (only for occupational accidents) and partly by the Labour Market Insurance (LMI).
The administration of unemployment insurance benefits (voluntary insurance) is carried out by about 20 unemployment funds, private associations licensed by the state. At the national level, the Danish Agency for Labour Market and Recruitment (Styrelsen for Arbejdsmarked og Rekruttering) is responsible for legislation concerning unemployment insurance and oversees the implementation of employment policies.
Social Contributions in Denmark
Plan for employees
In Denmark, sickness, maternity, disability, old age and survivors’ insurance (social pensions) and family benefits are financed by taxes.
Employer and/or employee contributions are required for occupational accidents and diseases, supplementary pensions and unemployment. Finally, all workers are required to pay a contribution to the functioning of the labor market.
Employees contribute 8% of their gross wages. This contribution (arbejdsmarkedsbidrag) is used to finance labor market expenses.
For occupational accident insurance, the employer pays a premium to an approved private insurance fund. For occupational diseases, a contribution is levied by the Labor Market Insurance (AES). In both cases, the amounts paid vary according to the risk insured.
Participation in unemployment insurance is optional. The employee can join one of the state-approved unemployment insurance funds. These funds set a fixed contribution each year (1). The employer does not contribute to the unemployment insurance.
Finally, for the supplementary work-related pensions (ATP pensions), which are compulsory for people who work at least 9 hours a week, a monthly contribution of between DKK 94.65 and DKK 284 is due for each employee aged 16 or over. The contribution (2) is paid 1/3 by the employee and 2/3 by the employer.
(1) The contribution consists of a fixed part for the state (obligatorisk statsbidrag), which is the same for all funds and amounts to DKK 357 per month for a full-time insured employee, as well as a part individually determined by the unemployment fund to cover its administrative costs. Insured persons may also choose to pay an additional contribution to participate in an early retirement plan.
(2) Variable contribution according to the number of hours worked.
Collection
The employer is responsible for paying the labor market contribution (arbejdsmarkedsbidrag) to the Tax Office (SKAT) and transfers the contribution for occupational pensions to ATP Livslang Pension.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Denmark.
Our Payroll and HR services in Denmark
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Danish Krone (DKK)
Minimum Salary: There is no national minimum wage in Denmark. Wages are generally set by collective agreements.
Wage rates set by collective agreements vary according to age (different wage rates for workers over and under 18), experience (higher wages for more experienced workers) and difficulty of work.
Salary Payment: monthly, daily, hourly and at piece rates
Salary Calculation: gross to net
Legal Working Hours: 37 hours/week
Ready to Benefit from Danish HR & Payroll Experts?
About Denmark
Denmark is a Scandinavian country that includes the Jutland Peninsula and many islands, a total area of 2 210 579 km2. With a generous temperate climate due to its southern location compared to the rest of Scandinavia.
It has become one of the world leaders in developing many experiments in urban ecology for example the Ecovillage network. The goal of an ecovillage is to become more socially and ecologically sustainable than other communities.
Like the rest of Europe, Denmark is a post-industrial economy. Given the small size of its domestic market, the Danish economy depends heavily on foreign trade. Denmark exports its products afloat thanks to a dynamic specialized industry and its maritime and river transport, which are among the most important in the world. Several Danish companies have gained worldwide notoriety in specialized niches with steady growth.
Social Security in Denmark
Danish social protection covers all risks (illness, maternity, work accidents and occupational diseases, disability, old age, survivors and unemployment). It also provides for family allowances for Danish residents. Unemployment insurance is not mandatory. The worker must take out voluntary insurance to receive daily allowances in the event of cessation of activity.
Administrative Organization
The health care system is supervised by the Danish Health Autority (Sundhedsstyrelsen) and the Danish Patient Safety Authority (Styrelsen for Patientsikkerhed), while the five Danish regions and their municipalities share responsibility for health care. Daily sickness benefits are paid by the local authorities.
Social pensions, disability pensions, housing benefits, family benefits and cash benefits from the maternity insurance are administered by Udbetaling Danmark.
The occupational accident and disease insurance is managed partly by private insurers (only for occupational accidents) and partly by the Labour Market Insurance (LMI).
The administration of unemployment insurance benefits (voluntary insurance) is carried out by about 20 unemployment funds, private associations licensed by the state. At the national level, the Danish Agency for Labour Market and Recruitment (Styrelsen for Arbejdsmarked og Rekruttering) is responsible for legislation concerning unemployment insurance and oversees the implementation of employment policies.
Social Contributions in Denmark
Plan for employees
In Denmark, sickness, maternity, disability, old age and survivors’ insurance (social pensions) and family benefits are financed by taxes.
Employer and/or employee contributions are required for occupational accidents and diseases, supplementary pensions and unemployment. Finally, all workers are required to pay a contribution to the functioning of the labor market.
Employees contribute 8% of their gross wages. This contribution (arbejdsmarkedsbidrag) is used to finance labor market expenses.
For occupational accident insurance, the employer pays a premium to an approved private insurance fund. For occupational diseases, a contribution is levied by the Labor Market Insurance (AES). In both cases, the amounts paid vary according to the risk insured.
Participation in unemployment insurance is optional. The employee can join one of the state-approved unemployment insurance funds. These funds set a fixed contribution each year (1). The employer does not contribute to the unemployment insurance.
Finally, for the supplementary work-related pensions (ATP pensions), which are compulsory for people who work at least 9 hours a week, a monthly contribution of between DKK 94.65 and DKK 284 is due for each employee aged 16 or over. The contribution (2) is paid 1/3 by the employee and 2/3 by the employer.
(1) The contribution consists of a fixed part for the state (obligatorisk statsbidrag), which is the same for all funds and amounts to DKK 357 per month for a full-time insured employee, as well as a part individually determined by the unemployment fund to cover its administrative costs. Insured persons may also choose to pay an additional contribution to participate in an early retirement plan.
(2) Variable contribution according to the number of hours worked.
Collection
The employer is responsible for paying the labor market contribution (arbejdsmarkedsbidrag) to the Tax Office (SKAT) and transfers the contribution for occupational pensions to ATP Livslang Pension.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Denmark.
Our Payroll and HR services in Denmark
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure