EOR Service in Denmark

Shraddha Saxena

Hire, Onboard and Pay Employees in Denmark Quickly and Efficiently

Hiring in Denmark at a glance

CURRENCY
Danish Krone (DKK)
working hours
37 hours per week
public/bank holidays
11 public holidays
capital
Copenhagen
language
Danish
date format
DD-MM-YY
remote workers
1.2M
tax year
Jan 1st - Dec 31st
minimum hourly salary
No minimum wage
CURRENCY
Danish Krone (DKK)
public/bank holidays
11 public holidays
capital
Copenhagen
language
Danish
date format
DD-MM-YY
tax year
Jan 1st - Dec 31st
payroll frequency
Monthly
GDP
USD 398.30 billion (2021)
working hours
37 hours per week

Employer of Record in Denmark

Employers of Record (EORs) play a crucial role in compliantly hiring employees in Denmark. EORs have employment and recruitment specialists to help you onboard your team in Denmark. EORs ensure employment agreements are compliant with local labor regulations, mitigating legal risks for businesses. Collaborating with a Denmark-based EOR enables you to leverage their expertise in the domestic market, benefiting from streamlined HR procedures and quickly acquiring the right talent.

Why use Denmark EOR?

To protect the rights of its exemplary talent force, Denmark has a distinct set of employment laws. These laws are built around its social welfare model, labor union recommendations, and a tradition of cooperation between employers and employees. For example, Denmark follows the "flexicurity" model, which combines labor market flexibility for employers in addition to ensuring security and rights for employees. For example, employers can hire and fire employees at-will. However, such unemployed workers are compensated by the social security system.  Secondly, a significant portion of Denmark's labor laws - wages, working hours, pension schemes, vacations -  are determined through collective bargaining agreements between trade unions and employers' organizations. 


Navigating these laws and hiring talent compliantly can be daunting for employers. Here’s where A Danish EOR/PEO can help. An Employer of Record ensures compliance with the country's complex labor laws, minimizing the risk of non-compliance and associated penalties. Tech-based EORs such as Gloroots help you with hiring processes, payroll, tax compliance, and benefits administration, on a single platform. 

EOR Costs in Denmark

The cost of Denmark EOR/PEO services in Denmark may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Denmark EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employers

Denmark's highly-educated talent pool needs no introduction. For the unaware, Denmark’s population is highly literate and the country ranks 3rd in the Global talent Competitiveness Index. The country ranks 11th for innovation output and 2nd for the number of scientific and engineering articles  per 10,000 inhabitants. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Denmark.

Factors Global Ranking Interpretation
Rule of law 5 Indicates effectiveness of law enforcement
Labour-employer cooperation 1 Indicates positive labor-employee relationships
Reading Maths, and Science 16 Indicates average scores in OECD's survey of 15-year old students
University Ranking 15 Indicates average QS rankings
Labour productivity per employee 10 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 19 Indicates findability of skilled talent
Workforce with tertiary education 18 Indicates % of workforce with PG degrees
Digital Skills 7 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Denmark.

Why work in Denmark ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights.

Utilizing a PEO/EOR in Denmark  helps mitigate the risks associated with misclassification by ensuring compliance with labor laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

Contact Us

Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

Calculate Now

Employing in Denmark

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Employee Income Tax

Tax/Contributor Rate / Amount Description
VAT standard 12.10% -
Top Tax 15% (15% of part of the top tax base Exceeding 568,900)

Local Tax 

Tax/Contributor Rate / Amount
Labour Market Tax 8.00%
Municipal Tax 24.91%

Payroll Contribution

Category Tax/Contributor Rate / Amount
Employer Mandatory Social Security 2,271.00 DKK (annually) for full time employee
Public social security schemes (estimated) 5,300.00 DKK
Industrial injuries insurance (estimated) 5,000.00 DKK
Maternity Leave Fund 1,350.00 DKK
Holiday Bonus (accrued each month & paid out in May) 1%
Total Employment Cost 11,921.00 DKK +1%
Employee Contribution Social Security (ATP) 1,135.80 DKK p.a.

Separation

Termination process

Termination of the employment relationship in Denmark requires written notice with proof of receipt. Employees with at least one year of employment are protected against dismissal without just cause, while collective bargaining agreements offer similar protection after 9 months. Valid reasons for termination include changes in the employer's financial situation, company restructuring, issues with employee cooperation or trust, employee incompetence, or breach of contract, such as serious misconduct or theft.

Notice period

The notice period for employers depends on the duration of employment:

  • Less than 6 months: 1 month
  • Between 6 months and 3 years: 3 months
  • Between 3 and 6 years: 4 months
  • Between 6 and 9 years: 5 months
  • More than 9 years: 6 months

Probation periods

For salaried employees, probationary periods of up to three months are allowed. During this time, both parties can agree to terminate the employment with 14 days' notice.

For non-salaried employees, there is no set minimum or maximum probationary period unless specified in a collective agreement.

Start Hiring in Denmark today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Denmark

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Denmark must have a local legal organization and utilize local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Denmark makes compliance with employment laws demanding.

With Gloroots' global Employer of Record (EoR) service, you can let Gloroots handle the heavy lifting of payroll, tax, benefits, and compliance, allowing you to concentrate on what matters most: your employees and company growth.

Are you Ready to
Experience Seamless Hiring in Denmark ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Denmark .

Speak to our Expert