Good to know
Denmark offers one of the world’s most extensive parental leave programs, granting parents the right to a combined total of up to 52 weeks of partially compensated leave.
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Denmark is an ideal destination for hiring due to its highly educated and skilled workforce, which is a result of the country’s significant investment in education. Danish workers are renowned for their competence, creativity, and adaptability, making them valuable assets for any organization.
Furthermore, Denmark’s high level of English proficiency simplifies the process of attracting international talent and enables effective communication with employees and partners from diverse backgrounds across the globe.
In addition to its skilled workforce, Denmark offers a stable and well-functioning economy, complemented by a robust social safety net. This economic stability is particularly appealing to businesses seeking to establish a long-term presence in the country, as it provides a secure and reliable environment for operations.
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There is no statutory minimum wage in Denmark, they are set through collective bargaining agreements. An agreement may set actual pay rates or minimum pay rates at the industry level.
Furthermore, the collective agreements also provide for wage increase in the event of inflation. However, the Danish government has established the government fees and minimal salary for foreign nationals employed in Denmark within the pay-limit scheme for the year 2023. Under the pay-limit scheme, Denmark’s minimum annual gross salary has been raised to 465,000 DKK.
Standard Working Hours
A work week in Denmark is around 37 hours and it should not exceed 48 hours, including overtime. The standard work week is Monday – Friday.
The standard rate for overtime compensation is 150% of the regular pay for the initial 3 hours, and it increases to 200% for subsequent hours, holiday shifts, or Sunday work.
The payroll cycle in Denmark is generally monthly and employers must make payments on the same day of each month before the end of the month.
Additionally, it is not a legal requirement to pay a 13th-month salary payment, however, employers are known to offer employees bonuses.
Paid time off
Employees in Denmark are only entitled to paid holiday when it has been accrued in the previous calendar year. Employees earn 2.08 days’ paid holiday for each month of work in the preceding year, and so they can earn up to 25 working days of paid vacation per year. Workers must use at least 20 days per year, any remaining can be carried over to the following year.
Employees in Denmark receive full pay during sick leave. This is paid for by their employers for the first 30 days, after which it is paid by social benefits for up to 22 weeks. The sickness benefit is calculated based on the employee’s hourly pay and weekly working hours.
Employees are entitled to 18 weeks of maternity leave, 4 weeks preceding the due date, and 14 weeks after the birth, where the first 2 weeks are mandatory. Employees meeting the criteria (with a minimum of 160 hours worked in the past 4 calendar months, and a monthly commitment of 40 hours in at least 3 of these months) are qualified to receive 50% of their wages for this duration. However, employees falling under an agreement might be eligible for full compensation.
The father is entitled to take two weeks of paternity leave during the mother’s 14-week period of maternity leave. There is no legal obligation for the employer to pay salary during paternity leave.
Subsequently, parents have the option to take an additional 32 weeks of leave, which can be divided between both parents. This extended leave period entails a lower monthly rate.
Termination of Employment
Employers can terminate a fix term contract for business, personal or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain actions.
Employees with a consistent employment history of 12 years or more are eligible for severance pay ranging from one to three months’ salary. Employees with shorter terms might qualify for severance pay determined through their employment agreement or based on the terms of a collective agreement.
When it comes to dismissal, employees are entitled to a notice period of between 1 and 6 months, depending on their seniority. For resignations, employees in Denmark must provide their employer with 1 month’s notice.
The length of the probationary period in Denmark varies based on the nature of the position and is defined in the employment contract. Typically, probationary periods is up to 3 months.
The visa rules in Denmark vary depending on the nationality and purpose of the visit. Citizens of the European Union (EU), the European Economic Area (EEA), and Switzerland do not require a visa to enter Denmark and can travel freely for short stays. Non-EU/EEA citizens generally need a Schengen visa for short stays of up to 90 days within a 180-day period. This visa allows travel to Denmark and other Schengen Area countries. For longer stays or specific purposes like work, study, or family reunification, non-EU/EEA citizens may need a residence permit or other specific visas. The application process and requirements differ based on the individual’s situation and the purpose of their stay.
The standard rate of VAT in Denmark is 25.00%.