Denmark Payroll Guide

Q: How does payroll work in Denmark?

In Denmark, there are no mandatory pension contributions. Any scheme that is opened is negotiated by the employee and employer on a case-by-case basis. Such schemes can be split between both parties, or paid entirely by the employer. Employers are required to contribute into Samlet Betaling on a quarterly basis. This is an overarching Government Body that collects and contributes funds into a variety of schemes aimed at improving the local labour markets for employers.

Q: What are the general employment rules?

Full time employment in Denmark is 37 hours per week. There are no Danish laws surrounding Overtime, however, the EU Working Time Directive does apply. This states that employees must not work more than 48 hours in any given week. In cases whereby Overtime is offered, it is common for a rate of 150% to be payable for the first three hours and 200% thereafter.

Q: What about dismissing an employee?

To dismiss an employee in Denmark, a process must be followed and sufficient grounds supplied. We recommend speaking with one of our Employment Experts before engaging in the termination process.

Hire employees in Denmark

Currency

Danish Krone (DKK)

Population

5,824,857

Capital

Copenhagen

Official language(s)

Danish

Date format

dd/mm/yyyy

Fiscal year

1 January - 31 December

Why use PeoplePay?

Guaranteed Compliance

Robust, compliant payroll and hiring supported by a dedicated Account Manager.

Local Expertise

Avoid international payroll and hiring pitfalls including language barriers, regulations and employment laws.

Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.

Denmark Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.

Denmark HR

Helping you hire compliantly, steering you through the local HR laws and regulations.

Denmark Payments

Consolidated, one-wire transfers to cover your entire global workforce – at competitive rates.

Denmark Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Denmark

In-Country Employment Contracts

Creation of locally-compliant Danish employment agreements, ensuring you and your employees are protected in-country. Our experts in Denmark will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Denmark’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.

To discuss your individual needs get in touch today

Who we work with

We're here to help you scale

employees paid

0 +

countries covered

0 +

transactions

0 m +

currencies supported

0 +

Frequently Asked Questions

In Denmark, there are no mandatory pension contributions. Any scheme that is opened is negotiated by the employee and employer on a case-by-case basis. Such schemes can be split between both parties, or paid entirely by the employer.

Employers are required to contribute into Samlet Betaling on a quarterly basis. This is an overarching Government Body that collects and contributes funds into a variety of schemes aimed at improving the local labour markets for employers.