Payroll and HR in Denmark
The International HR & Payroll Company
That Speaks Your Language
IRIS FMP will simplify Danish payroll and HR. As a recognized global payroll and HR specialist, we operate 88 in-country teams to help ensure your international employees are taken care of.
Navigating the intricacies of global payroll and HR in Denmark is not always easy. As compliance is always a top priority for businesses, we can support you during a global expansion with any HR or payroll inquires. With the differing laws, cultures and regulations, it can feel overwhelming to stay ahead. Fortunately, our expert teams are here to help. We offer:
Looking for a Payroll and HR Solution?
Payroll in Denmark
We take away the complications of global payroll and manage everything for you – including local pay to benefits, and more. Through our payroll support, your growing workforce will be paid accurately, on-time, every time.
Danish Employment Law Compliance
We will help you to seamlessly and compliantly onboard your organization’s people. As an in-country specialist, we can help with contracts, policies, handbooks and more.
Jump to section
- Europe (Northern Europe)
- Calling Code
- UTC-04:00, UTC-03:00, UTC-01:00, UTC, UTC+01:00
- Timezone in Capital
- (europe/copenhagen) 3:28 AM
- Danish krone (DKK)
$1 = kr7.04
- Main Language
- Other Business Languages
- Danish and English
- Tax Year Start
- 1st January
- Tax Year Start
- 31st December
Details correct at time of publication. You should not rely on these details without first seeking professional international advice.
A trusted advisor for global expansion
We support businesses in 135 countries worldwide to reach their expansion goals.
Global Expansion in Denmark
Did you know, the UN World Happiness Report has rated Danes as the happiest people on earth two years in a row? With Denmark’s flourishing economy, easy access to Northern European markets and English speaking natives, it’s no wonder businesses are flocking.
However, whilst opportunities for growth are appealing, there are some key considerations to remember. To ensure you maintain tax and regulatory compliance, and are paying your employees accurately, on time, you need a global payroll and HR expert by your side.
In Denmark, the following reports must be submitted to strict deadlines
- Monthly Social Security reports
- Monthly Taxable Benefits report
- Annual corporate income tax returns
Payroll in Denmark
What tax considerations are there?
In Denmark, personal income tax is variable depending on personal circumstances and the type of benefits employees are receiving. The Danish tax authority is called SKAT, however, it is worth noting all systems are available in Danish only and most communications from SKAT are in Danish.
When it comes to social security, employers in Denmark pay a selection of minor contributions amounting to approximately DKK8-10000 per employee per year for ATP (statutory pension fund) contributions. The employee also contributes approximately DKK1080 per year (in full time employment). With AM (labour market) contributions, employees are liable to pay 8 percent of their income.
HR in Denmark
What are the regular working hours in Denmark?
As the Danish value their work/life balance greatly, it is unusual for them to work late into the day. Usual working hours are Monday-Friday from around 8am to 5pm with average weekly working hours sitting at around 37 hours a week.
In Denmark, people are employed under legislation called “funktionærloven” which compiles clear notice period rules and reasoning guidelines. Employers are within their rights to terminate employment based on financial reasons, cooperation issues or if an employee is ill for more than 120 days in a twelve-month period.
Looking for more information?
To get to grips with international payroll and the key considerations that come along with it, download our free guide to international payroll.
IRIS FMP’s Danish Payroll and HR Solutions
IRIS FMP has a wealth of experience when it comes to payroll and HR overseas. Whether you’re looking for payroll and HR services in Copenhagen or Aarhus, we can help. Our services include but are not limited to:
- Recruitment and Background Screening
- Danish Employment Contracts
- Payroll Processing
- Regulatory Compliance
- Benefits Administration
- Pension Administration
- Tax and Labour Law Consulting
- EU/EEA Citizen Support
- Company Formation
- Representation Agent & Address of Record
- Bookkeeping & Accounting Services
- VAT & Tax Processing
- Business Visa Applications
- Work Permit Applications
- Expert Tax Relief Applications
- Virtual Office & Mail Forwarding
- Translation Services
- Website Services
- Affiliations with the American Chamber of Commerce
Stay Compliant – Payroll and HR Services in Denmark
Our in-country team will ensure your business meets the mandatory requirements of payroll and HR processes in Denmark. Speak to us today