- Country Guide
- Denmark
Denmark
Last Update by , 20 Aug 2024
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Exchange Rate
10 Oct 2024
Cost of Living
Indicative value for a working adult in a city: Copenhagen
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (DKK) |
|---|---|
| McDonalds Set Meal | 100 |
| Monthly Train and Bus Tickets | 670 |
| 3 Bedrooms Rental (City Center) | 28,980 |
| 3 Bedrooms Rental (Outskirt) | 15,056 |
Current Inflation Rate
0.80%
Wage
Minimum Wages
- No statutory minimum salary in Denmark
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (DKK) |
|---|---|
|
Entry-Level
Fresh Graduate
|
3,000 |
|
Mid-Level
5 Years
|
4,000 |
|
Experienced & Managerial Level
10 Years
|
6,000 |
|
Specialized & Senior-Level
15 Years
|
9,000+ |
Annual Salary Growth
5.7%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security (ATP) | 198 DKK per month | 99 /month | All staff working at least 117 hours per month |
| Education Program (AUB) | 232.60 DKK per month | - | Apprentices & those on vocational training |
| Workplace Injury Scheme (AES) | 18-430 DKK per month | - | All staff |
| Maternity Leave Fund (Barsel) | 112.50 DKK per month | - | All staff |
| Danish Labor Market Fund (AFU) | 48 DKK per month | - | All staff |
| Occupational injury insurance (FIB) | 592 DKK per month | - | All staff |
| Annual leave/ Holiday Allowance | 1% paid in May and August | - | All staff |
Other Benefit
Other common employment benefits in Denmark include:
- Mobile Phone & Internet allowance: Roughly 250 DKK per month
- Additional Annual Leave: 1-5 days per year
- Additional pension contributions: 5%-10% per month
Income Tax
Residents
-
Tax period: 1st January- 31st December
Filing start date: November
Country Level
| Taxable Income | Rate |
|---|---|
|
National Tax: Bottom Tax - salary up to 49,700 DKK Top Tax - salary over 588,900 DKK |
12.01% 15% after a deduction of 8% labour market tax |
| Labour Market Tax (AM) | 8% |
| Taxable Income | Rate |
|---|---|
| Church Tax (Varies per region): Salary over 552,500 DKK | 0.65% Only for members of the Danish State Church |
State/Province Level
Municipal Tax (Varies per region)
| Taxable Income | Rate |
|---|---|
| Up to 46,800 DKK | 25% average |
Non-residents
- Tax is the same for non-residents and residents
Working Hours
Statutory
37 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Monday - Friday
Overtime
A work week should not exceed 48 hours, including overtime and more than 37 hours must be included in the contract
- For the first 3 hours: 1.5 times the regular rate
- Subsequent hours, holidays, or Sundays: 2 times the regular rate
Employment Contract
Permanent
Contract Format
Written, in Danish or English. Employers and staff are free to choose a language mutually understood by both parties. Contracts are issued within the first month of employment
Payroll Currency
DKK
Probation
No statutory period, typically up to 3 months
Contract Period
No minimum duration
Termination
-
Notice during probation:
-14 days for employers, 1 month for staff -
Voluntary resignation:
- 1 month -
Involuntary termination:
- Under 6 months 'service: 1 month
- 6 months – 3 years service: 3 months
- 3-6 years service: 4 months
- 6-9 years service: 5 months
- Over 9 years service: 6 months -
Severance:
- Applies to white collar staff dismissed without cause
- Over 12 years' service: 1 month salary
- Over 17 years' service: 3 months' salary
Public Holiday
10 days
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 28 Mar | Maundy Thursday |
| 29 Mar | Good Friday |
| 31 Mar | Easter Sunday |
| 01 Apr | Easter Monday |
| 26 Apr | General Prayer Day |
| 09 May | Feast of the Ascension of Jesus Christ |
| 19 May | Pentecost |
| 20 May | Whit Monday |
| 05 Jun | Constitution Day |
| 25 Dec - 25 Dec | Christmas Day |
| 26 Dec | Second Day of Christmas |
| 31 Dec | New Year's Eve |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 25 working days | All staff |
| Sick Leave | 22 weeks | Staff with 8 weeks' service |
| Maternity Leave | 52 weeks | Expectant mothers with 4 months' service |
| Paternity Leave | 2 weeks | Expectant fathers with 4 months' service |
| Parental Leave | 32 weeks | All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Copenhagen
- https://www.retsinformation.dk/
- https://lifeindenmark.borger.dk/working/social-security-cover
- https://lifeindenmark.borger.dk/working/work-rights/working-conditions/pay
- https://businessindenmark.virk.dk/guidance/employment-and-dismissal/employment-contracts/
- https://skat.dk/en-us/individuals/taxation-in-denmark/tax-liability
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Contact UsCountry Guide - Denmark
Last updated: 20 Aug 2024
Exchange Rate
Currency (DKK)
- 1 CNY = 0.185 DKK
- 1 USD = 1.32 DKK
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Copenhagen
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (DKK) |
|---|---|
| McDonalds Set Meal | 100 |
| Monthly Train and Bus Tickets | 670 |
| 3 Bedrooms Rental (City Center) | 28,980 |
| 3 Bedrooms Rental (Outskirt) | 15,056 |
Current Inflation Rate
0.80%
Wage
Minimum Wages
- No statutory minimum salary in Denmark
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (DKK) |
|---|---|
|
Entry-Level
Fresh Graduate
|
3,000 |
|
Mid-Level
5 Years
|
4,000 |
|
Experienced & Managerial Level
10 Years
|
6,000 |
|
Specialized & Senior-Level
15 Years
|
9,000+ |
Annual Salary Growth
5.7%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security (ATP) | 198 DKK per month | 99 /month | All staff working at least 117 hours per month |
| Education Program (AUB) | 232.60 DKK per month | - | Apprentices & those on vocational training |
| Workplace Injury Scheme (AES) | 18-430 DKK per month | - | All staff |
| Maternity Leave Fund (Barsel) | 112.50 DKK per month | - | All staff |
| Danish Labor Market Fund (AFU) | 48 DKK per month | - | All staff |
| Occupational injury insurance (FIB) | 592 DKK per month | - | All staff |
| Annual leave/ Holiday Allowance | 1% paid in May and August | - | All staff |
Other Benefit
Other common employment benefits in Denmark include:
- Mobile Phone & Internet allowance: Roughly 250 DKK per month
- Additional Annual Leave: 1-5 days per year
- Additional pension contributions: 5%-10% per month
Income Tax
Residents
-
Tax period: 1st January- 31st December
Filing start date: November
Country Level
| Taxable Income | Rate |
|---|---|
|
National Tax: Bottom Tax - salary up to 49,700 DKK Top Tax - salary over 588,900 DKK |
12.01% 15% after a deduction of 8% labour market tax |
| Labour Market Tax (AM) | 8% |
| Taxable Income | Rate |
|---|---|
| Church Tax (Varies per region): Salary over 552,500 DKK | 0.65% Only for members of the Danish State Church |
State/Province Level
Municipal Tax (Varies per region)
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
Non-residents
- Tax is the same for non-residents and residents
Working Hours
Statutory
37 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Monday - Friday
Overtime
A work week should not exceed 48 hours, including overtime and more than 37 hours must be included in the contract
- For the first 3 hours: 1.5 times the regular rate
- Subsequent hours, holidays, or Sundays: 2 times the regular rate
Employment Contract
Fixed-Term
Used for completing specific tasks, projects or events
Probation
No statutory period, typically up to 3 months
Termination
-
Notice during probation:
-14 days for employers, 1 month for staff -
Voluntary resignation:
- 1 month -
Involuntary termination:
- Under 6 months service: 1 month
- 6 months – 3 years service: 3 months
- 3-6 years' service: 4 months -
Severance:
- None due, only staff with 12 years' service qualify
Permanent
Probation
No statutory period, typically up to 3 months
Termination
-
Notice during probation:
-14 days for employers, 1 month for staff -
Voluntary resignation:
- 1 month -
Involuntary termination:
- Under 6 months 'service: 1 month
- 6 months – 3 years service: 3 months
- 3-6 years service: 4 months
- 6-9 years service: 5 months
- Over 9 years service: 6 months -
Severance:
- Applies to white collar staff dismissed without cause
- Over 12 years' service: 1 month salary
- Over 17 years' service: 3 months' salary
Public Holiday
10 days
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 25 working days | All staff |
| Sick Leave | 22 weeks | Staff with 8 weeks' service |
| Maternity Leave | 52 weeks | Expectant mothers with 4 months' service |
| Paternity Leave | 2 weeks | Expectant fathers with 4 months' service |
| Parental Leave | 32 weeks | All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Copenhagen
- https://www.retsinformation.dk/
- https://lifeindenmark.borger.dk/working/social-security-cover
- https://lifeindenmark.borger.dk/working/work-rights/working-conditions/pay
- https://businessindenmark.virk.dk/guidance/employment-and-dismissal/employment-contracts/
- https://skat.dk/en-us/individuals/taxation-in-denmark/tax-liability
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000