DENMARK PEO & EOR
Hire in Denmark without
a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Denmark today with Gibson Watts Global.
DID YOU KNOW
- Denmark is consistently ranked among the happiest countries in the world in global surveys, often due to its strong welfare system, work-life balance and high social trust.
- The Danish concept of “hygge” (a feeling of coziness and contentment) plays a major role in social culture, influencing home life, social gatherings and even business atmospheres.
- Denmark is a global leader in wind energy, generating a large share of its electricity from wind turbines; many offshore wind farms are among the world’s most advanced and efficient.
Forget software,
this is expansion
with a human touch
DENMARK EOR Services
A model of welfare-based business environment
Denmark offers a highly educated workforce, stable regulatory and legal systems, excellent infrastructure and strong labor protections. However, employment cost, social contributions, collective bargaining and statutory benefits are significant. By partnering with Gibson Watts Global as your Employer of Record in Denmark you gain local expertise to manage payroll, trade union agreements, social contributions, statutory leave, health and pension obligations, and compliance with Danish labor law. We take care of local contracts, benefits administration, and regulatory compliance to ensure you can scale operations efficiently.
Working in DENMARK
Financial Year Dates
The fiscal year runs from 1 January to 31 December.
Minimum Wage
Denmark does not have a statutory national minimum wage. Wages are typically set by collective agreements between unions and employers in sectors.
Standard working hours
Standard full-time working hours are about 37 hours per week in many sectors. Working days are generally five days a week.
Overtime
Hours worked beyond agreed working hours must be compensated, usually with overtime premiums as defined in collective agreements. Employers must observe rest periods and weekly maximum working time limits.
Holiday Allowance
Employees are entitled to 25 working days of paid holiday leave per year under the Holiday Act. Additional leave may apply under collective agreements or employer policy.
Sick Leave
Employees are eligible for sick leave from day one of employment. The employer pays for a portion of sick pay for initial days (exact terms depend on collective agreement), then municipal/state should cover after employer payment period. Medical certificate required in many cases.
Maternity & Paternity Leave
Mothers are entitled to 4 weeks of maternity leave before birth and 14 weeks after birth as a minimum under Danish law. Fathers have entitlement to up to 2 weeks of paternity leave, plus parental leave shared between parents of up to 32 weeks (with portions paid) depending on agreement and eligibility.
Public Holidays
Denmark observes several public holidays including:
- New Year’s Day
- Maundy Thursday
- Good Friday
- Easter Monday
- General Prayer Day
- Ascension Day
- Whit Monday
- Constitution Day
Christmas Day and Boxing Day
Social Contributions
Employee contributions
Employees contribute to social security programs, including state pension, health services and unemployment insurance via payroll deductions. The exact employee rate depends on total income and specific scheme contributions; some contributions are capped.
Employer contributions
Employers contribute significantly to pension schemes, ATP (labour market supplemental pension), work-injury insurance, unemployment insurance, health insurance components, and other statutory social schemes. Combined employer burden can be substantial, often exceeding 10-15% of gross salary depending on sector and agreement.
Income Tax
Denmark uses a progressive tax system. Individuals pay national income tax, municipal tax, labour market contributions, health contributions, and sometimes church tax. Marginal tax rates (combined) can exceed 50-55% at high income levels after all contributions. Non-residents are taxed on Danish source income.
Health Care
Denmark has universal health care funded via taxation. Registered residents receive medical treatment, hospital, preventive services free or heavily subsidised. Employers often provide supplementary private health insurance for certain employees.
Visas
EU/EEA/Swiss nationals have freedom of movement and do not require work permits. Non-EU nationals generally require work and residence permits to work legally in Denmark.
13th salary?
Denmark does not have a statutory requirement for a 13th-month salary. Any extra payments, bonuses or year-end supplements are negotiated in collective agreements or provided by employer policy.
Cultural Information
Work-life balance is highly important. Many employees enjoy flexible working arrangements, and there is strong legal and social support for parental leave, vacation and rest periods.
Cultural life is rich with design, architecture, cuisine and biking culture. Danish architecture is recognised worldwide. Food culture includes smørrebrød, pastries, rye breads, seafood, organic and locally sourced food. Festivals, hygge gatherings and a love for nature (parks, forests, coastline) are integral.