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Localised employment contracts
Denmark is a leading destination for international employers, known for its high quality of life, strong economy, and highly skilled workforce. With a collaborative labour market based on collective agreements and progressive work policies, Denmark offers an attractive environment for remote hiring and business expansion in Northern Europe.
Denmark’s labour market is shaped by a model of negotiation and cooperation between trade unions and employer associations rather than rigid legislation. Hiring in Denmark requires understanding collective agreements, non-statutory wage structures, and the country’s strong social welfare systems.
Get details on Denmark’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
Employment contracts in Denmark are not strictly regulated by law but are commonly used to outline key terms of employment, particularly when a collective agreement applies. Contracts should clearly specify job duties, salary, working hours, and notice periods.
Notice periods: 14 days - 6 months, depending on the employee’s tenure.
Termination of employment: Must follow local labour rules, including notice, severance, and just cause (if applicable).
Want to learn more about employment contracts in Denmark? Get our full template now!
In Denmark, employee benefits are strongly influenced by collective bargaining agreements and welfare policies. Employers must contribute to several public schemes while also offering benefits in line with negotiated agreements.
Mandatory benefits: Holiday pay, sick pay, pension contributions, and labour market contribution.
Common perks: Health and wellness benefits, childcare subsidies, flexible work arrangements, training and development, extra vacation days, travel allowances, bonuses and profit sharing.
Leave policies: Annual leave, sick leave, maternity leave, paternity leave, parental leave, special holidays.
Want to learn more about all the employee benefits available in Denmark?
Employers in Denmark are responsible for withholding income taxes and social contributions through the Danish Tax Agency (SKAT). Tax rates are progressive and depend on the employee’s income level.
Danish payroll must comply with strict reporting and payment standards. Salaries are paid monthly, and employers must report payroll data to SKAT, along with applicable tax withholdings and labour contributions.
Salary payment deadline: Monthly, typically by the end of the month
Taxes and contributions payment deadline: Submitted monthly to SKAT
Payroll declarations deadline: Monthly reports due by month-end; annual summary due by February 28.
Payroll currency: Danish Krone (DKK)
While Danish labour law offers a framework, most employment conditions are set through collective agreements. These cover aspects like salaries, leave, notice periods, and working hours. Employers must remain compliant with both the law and any applicable agreements.
Minimum wage: No minimum wage
Probation period: Up to 3 months
Using EOR services in Denmark allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Denmark provides HR and administrative support while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Denmark but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Denmark’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Denmark with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: July 30, 2025
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Freelancers and gig workers in Denmark are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.
