Denmark: Payroll & Employment Facts
Verified statutory employment facts for Denmark, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Denmark employer-of-record guide and the Denmark country hub.
What is the minimum wage in Denmark?
| National minimum wage |
No statutory national minimum wage
|
|---|
What employer social contributions apply in Denmark?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
Not available
|
|---|---|
| Pension |
Not available
|
| Healthcare |
0.00%
|
| Arbejdsmarkedets Tillægspension (ATP) |
3,384 DKK/year
|
| Arbejdsgivernes Uddannelsesbidrag (AUB) |
3,015 DKK/year
|
| Barsel.dk (Maternity Leave Fund) |
1,350 DKK/year
|
| Finansieringsbidrag (FIB) |
498 DKK/year
|
| Lønmodtagernes Garantifond (LG) |
280 DKK/year
|
| Arbejdsmarkedets Fond for Udstationerede (AFU) |
55 DKK/year
|
| Arbejdsmarkedets Erhvervssikring (AES) |
Not available
|
| Annual contribution ceiling |
Not available
|
| Total employer burden |
1.62%
|
What notice and leave rules apply in Denmark?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0 to 5 months | 4 weeks |
| 6 to 35 months | 12 weeks |
| 36 to 71 months | 16 weeks |
| 72 to 107 months | 20 weeks |
| 108+ months | 24 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
25 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
10 days
|
Is 13th-month pay required in Denmark?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
Yes
|
How is severance calculated in Denmark?
| Formula |
Salaried employees (funktionaer) under the Salaried Employees Act s.2a: 1 month's salary after 12 years' service, 2 months after 15 years, 3 months after 17 years. Not payable if the employee receives an old-age/company pension at termination.
|
|---|---|
| Per-year multiplier |
Not available
|
| Minimum qualifying tenure |
144 months
|
| Calculation base |
Gross
|
Worked example
An employee with 5 years of service and an annual salary of £30,000 (approx. 258,000 DKK) is made redundant. Service: 5 years (60 months). Qualifying Tenure: The minimum qualifying tenure for statutory severance pay is 12 years (144 months). Calculation: As the employee's service is less than the 12-year minimum, they are not entitled to any statutory severance pay. Result: 0 DKK.