Denmark

• There is no legislation in Denmark on public holidays, but common holidays include:
• New Year's Day
• Maundy Thursday
• Good Friday
• Easter Monday
• General Prayer Day
• Ascension Day
• Whit Monday
• Christmas Day
• Boxing Day

Working Hours

Employees can work up to 48 hours a week.

Minimum Wage

The average hourly minimum wage across all sectors is DKK 110 per hour. Wages are usually negotiated in a collective bargaining agreement.

Employee Tax

State Tax

Bottom tax rate	12.11%
Top tax rate	15%

Local Tax

Labour market tax	8%
Municipal tax	25.018%

Share Tax

Up to DKK 56,500	27%
More than DKK 56,500	42%
Church tax	0.669%
Social security (ATP)	DKK 1,135.80

Pension Fund

Full-time employee	DKK 99
Part-time employee (under 117 hours)	DKK 66
Part-time employee (under 78 hours)	DKK 33
Part-time employee (less than 39 hours)	DKK 0

Bonuses

There are no statutory bonus schemes in Denmark.

Employees in Denmark can have one of three legal statuses:

• Executive officers
• Salaried employees
• Workers

Salaried employees and workers are protected by several statutory rules.

Employment contracts must be written and contain as a minimum:

• Employee and employer details
• Place of work
• Job title and responsibilities
• Work start date and contract length (if applicable)
• Salary, leave and benefits
• Notice period
• Working hours
• Collective bargaining agreement details

Annual Leave

Minimum of 2.08 days' holiday per month of service, equating to 25 days per year.

Sick Leave

At least 30 days' paid sick leave per year, with a medical certificate required within two weeks' of the employer requesting it.

From the 30th day, sick leave is paid by the local authority.

Parental Leave

• Maternity leave: from 2-14 weeks' paid leave.
• Paternity leave: two weeks' unpaid leave.
• Parental leave: parents can share an additional 32 weeks' paid leave after statutory maternity/paternity leave.

Termination Process

Employers in Denmark can terminate a contract provided they give notice in line with legal requirements. Unfair dismissal may lead to compensation claims.

A warning is often required before an employee can be dismissed on performance-based grounds.

Employees can also give notice of termination in line with their contract terms.

Severance Pay

Salaried employees are entitled to one month’s salary up to 12 years of service, rising to two months after 15 years and 3 months after 18 years.

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance system that connects all Mauve entities to two trusted providers. As part of our comprehensive global Employer of Record services, this insurance programme supports companies employing staff overseas by ensuring they meet local legal requirements while protecting their workforce.

The insurance provides compliant coverage across international locations through a combination of the master policy and jurisdiction-specific local policies, where required by law. This guarantees alignment with local employment regulations—critical for maintaining global compliance within any international EOR payroll setup.

Policies include:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Limit varies depending on the employee’s country of work

This solution is ideal for companies seeking to streamline global employee management while maintaining full regulatory coverage for every EOR employee in their international workforce. For tailored advice on EOR insurance coverage and global compliance services in your country of interest, contact Mauve’s expert compliance team.