Payroll and HR in Denmark

Local Information

Local Time (LIVE):4:49 AM
Local Currency:$1 = kr6.76
Business Language(s):Danish and English
Tax Year Dates:1st January – 31st December

 
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.

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Employer Must-Dos

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.

Termination

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.

Download Our Guide

FMP’s Danish Payroll and HR Solutions

FMP Global 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

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