Employer of Record (EOR) Denmark

Expand your team in Denmark without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
  • Transparent & Compliant
  • World-Class Expertise
  • Cost-Efficient

Start Hiring in Denmark

Simple & Compliant Hiring with Globaine's Employer of Record (EOR)

Hire in Denmark with Confidence 
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Denmark is handled efficiently and in full compliance with local regulations.

Fast Time-To-Hire

Onboard employees in as little as 12 hours.

Cost-Efficient

The most affordable solution on the market, saving you time and money.

Compliant Contracts

We draft bilingual contracts compliant with Denmark's labor law.

Global Reach, Local Expertise
Hire not just in Denmark, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.

Jump to

in Denmark

In Denmark, a valid employment contract must be provided in writing if the employment exceeds one month and involves more than eight hours of work per week. The contract should include essential details such as the employee’s name, job title, work location, working hours, salary, employment start date, notice period, and any special terms like non-compete or confidentiality clauses.

In Denmark, a written contract is mandatory for employment exceeding one month with weekly hours exceeding eight. Although verbal agreements are valid, having a written contract ensures clarity and compliance with Danish labor laws. Written contracts are particularly important for roles involving special conditions, such as international assignments or fixed-term employment.

In Denmark, the salary should be clearly stated in Danish kroner (DKK). It should include details on base salary, payment frequency, bonuses, allowances, and overtime rates. If applicable, information about adjustments linked to collective bargaining agreements or inflation must also be outlined.

Key clauses often included in Danish employment contracts are:

  • Non-compete clauses: Prevent employees from joining competitors for a specified period.
  • Confidentiality clauses: Ensure sensitive company information remains protected.
  • Remote working clauses: Detail the terms and conditions for employees working from home.
in Denmark

1. What are the key steps in employee onboarding in Denmark?

Onboarding in Denmark includes registering the employee with the Danish Civil Registration System (CPR) and obtaining a tax card from SKAT (the Danish Tax Agency). Employees must also provide identification, proof of eligibility to work in Denmark, and, if required, a work permit. Employers should familiarize new hires with workplace policies and safety procedures.

2. When should employees complete pre-hire medical checks in Denmark?

In Denmark, pre-hire medical checks are typically required for roles in healthcare, manufacturing, or other physically demanding sectors. These checks should be completed before the employee begins work to ensure compliance with health and safety standards.

3.What documents are required for onboarding in Denmark?

The following documents are generally required for onboarding in Denmark:

  • Proof of identity (passport or national ID card).
  • Danish tax card.
  • Work and residence permits (if applicable).
  • Signed employment contract.

in Denmark

In Denmark, salaries are typically paid monthly, and the structure includes the base salary along with allowances, bonuses, and overtime payments. Salaries are deposited via bank transfer, and all necessary deductions, such as income tax and labor market contributions, are made at the source.

For remote employees in Denmark, payroll must comply with Danish labor laws. Employers need to ensure tax and social security contributions are accurately calculated and provide remote work allowances for utilities, equipment, or other expenses.

Denmark does not have a statutory minimum wage. Wages are typically determined through collective bargaining agreements or direct negotiations between employers and employees.

In Denmark, there is no legal requirement for a 13th or 14th salary. However, some collective bargaining agreements or individual contracts may include additional bonuses, such as holiday allowances.

in Denmark

1.What are the income tax rates in Denmark?

In Denmark, income tax rates are progressive, with rates ranging from approximately 37% to 52%, including state, municipal, and healthcare contributions. Higher-income individuals may be subject to an additional top tax rate.

2. How does the tax system apply to non-residents Denmark?

Non-residents in Denmark are taxed on income earned within the country at a flat rate of 27% for the first DKK 600,000 and 42% for income exceeding this threshold. Additional taxes may apply depending on residency status and income sources.

3. When should tax returns be submitted in Denmark?

In Denmark, the annual tax return (Selvangivelse) must be submitted by May 1st of the following year. Employers are responsible for withholding taxes throughout the year.

4. What social security contributions are required in Denmark?

Employers in Denmark contribute approximately 12% of the employee’s gross salary to social security funds, covering benefits such as healthcare, unemployment, and pensions. Employees also contribute through income tax.

in Denmark

Employees in Denmark are entitled to five weeks (25 days) of paid annual leave. Leave is accrued at a rate of 2.08 days per month worked and must be taken within the holiday year, which runs from September 1st to August 31st.

In Denmark, employees can begin using their accrued leave during the same holiday year. This flexibility is designed to promote work-life balance.

In Denmark, maternity leave is 18 weeks, with four weeks before the due date and 14 weeks after. Paternity leave is two weeks, and both parents can share an additional 32 weeks of parental leave. Payments are provided through the Danish social security system.

Denmark has 11 public holidays, and employees are typically entitled to time off. However, public holiday pay is often determined by collective bargaining agreements or individual contracts.

in Denmark

1.What benefits are mandatory in Denmark?

Mandatory benefits in Denmark include social security contributions, healthcare coverage, pensions, unemployment insurance, and paid leave (annual, maternity, and parental leave).

2. How is the home office allowance structured in Denmark?

In Denmark, home office allowances are not legally mandated but are often provided to remote employees to cover expenses like electricity, internet, and equipment. These allowances may be negotiated individually or included in collective agreements.

3. When should meal allowances be provided in Denmark?

Meal allowances in Denmark are not mandatory but are often offered for employees traveling for work or working overtime. These allowances must comply with tax regulations to be exempt from taxation.

4. What additional benefits are common in Denmark?

Common additional benefits in Denmark include private health insurance, transportation allowances, wellness programs, and flexible working arrangements. Employers may also offer subsidized meals, gym memberships, or professional development opportunities.

TERMINATIONS

in Denmark

In Denmark, the notice period depends on the length of service and the terms of the employment contract or collective agreement. Typically, it ranges from one month for newer employees to six months for those with over nine years of service.

In Denmark, termination without notice is allowed only in cases of gross misconduct, such as theft, fraud, or violent behavior. Employers must follow fair procedures, including proper documentation and an investigation.

Severance pay in Denmark is generally determined by collective agreements or individual contracts. Employees with significant tenure may be entitled to additional payments, but statutory requirements are minimal compared to other EU countries.

Mutual termination in Denmark requires a written agreement outlining the terms, including the last working day, severance payments, and any waivers of future claims. Both parties must freely consent to the agreement.

FAQs

Globaine ensures compliance with Denmark’s labor laws by providing contracts that align with local regulations, including salary, working hours, and benefits. We also handle tax, social security contributions, and ensure adherence to the Danish Employment Act and other legal requirements.

By using Globaine’s EOR solution, companies save on costs associated with establishing a local entity, such as registration, legal fees, and operational overhead. Globaine also manages payroll, benefits, and compliance, reducing the need for a dedicated HR team and minimizing risk-related expenses.

Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.

Yes, Globaine can handle complex employment scenarios in Denmark, including drafting bilingual contracts and managing terminations. Our legal team ensures that all contracts are compliant with local laws, and we support all termination processes in accordance with Danish labor regulations.

Hiring without an EOR in Denmark can lead to non-compliance with complex labor laws, exposure to hefty fines, and difficulties with payroll and tax reporting. Globaine mitigates these risks by managing all legal, financial, and compliance aspects, ensuring that companies operate within the bounds of Danish law.

 
Employer of Record (EOR) Denmark

Need assistance with hiring or managing employees in

Denmark?

Reach Out to Our Experts today and hire with confidence!