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

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 solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.