As of March 2024, the estimated population of Denmark is 5.9 million.
The currency in Denmark is the Danish Krone (DKK). The currency symbol is kr.
The labor code of Denmark defines permanent employees as employees who are in an indefinite employment relationship with the employer. Employees whose employment relationship expires when they reach retirement age or who are entitled to receive a retirement pension from the employer are not temporary employees.
Employers of Danish citizens are obligated to provide a written contract containing all material terms of employment to employees working over 3 hours per week in a reference period of 4 consecutive weeks. If a collective bargaining agreement regulates the general terms of employment, the contract must include a specific reference to the agreement. The written information, in paper or digital format, must be provided to the employee within 7 calendar days of the employee's start date. Employers have the right to establish restrictive covenants with their employees, offering them options such as a non-competition clause, which prevents employees from competing with their employer, a non-solicitation of customers' clause, which prohibits employees from engaging in business with the employer's customers or associates, or a combination of both clauses. The maximum term of such clauses is 12 months. Such clauses are valid only if the employee has been informed in writing.
Law No. 595 of 2013 applies to temporary workers who have entered into an employment contract or employment relationship with a Danish or foreign temporary agency and are sent by the agency to user companies in Denmark to temporarily carry out duties under the user companies' supervision and management. The law applies to for-profit and non-profit enterprises and, among other things, obligates the temporary agency to ensure that temporary workers during their posting to a user company receive at least the same treatment as workers employed directly by the user company to perform the same tasks. The user company must ensure that temporary staff are informed of any vacancies in the user company, so that they have the same opportunity to obtain permanent employment as other employees in the company. Temporary staff must have access to the user company's collective facilities and goods, including canteen, childcare, and transport facilities, on the same terms as employees who are employed directly by the company. According to a Danish Labour Court decision, temporary workers are entitled to at least the same pay and employment terms as the user company’s own employees in comparable positions. If a collective bargaining agreement applicable to temporary workers gives them less favorable treatment than comparable permanent employees, they must receive compensatory benefits.
Under the Act on Employment Certificates and Certain Working Conditions in Denmark, probationary periods may not exceed 6 months or, for fixed-term contracts, a quarter of the employment period, not exceeding 6 months. If the employer proves that the employment was on a trial basis and the employment relationship does not last longer than 3 months, the employer must give 14 days' notice to terminate the contract, while the employee can terminate without notice. A contract may provide a more extended notice of termination for a salaried employee if the employer's notice of termination is extended accordingly.
Per the labor law of Denmark, an employee's weekly working time must not exceed 48 hours on average over a period of 4 months, including overtime. Periods of annual paid leave and periods of sick leave are not included in or are neutral in relation to the calculation of the average. From July 1, 2024, employers are allowed to enter into individual agreements with certain employees to work more than 48 hours. This applies only to employees who are covered by collective agreement provisions on on-call shifts and who perform critical functions within the areas. Employers must give a rest period of at least 11 consecutive hours within every period of 24 hours. There must be at least one 24-hour rest period per week. The employer must do their best to ensure that this period falls on a Sunday and that all employees take this rest at the same time. The regular daily working hours for night workers must not exceed an average of 8 hours over a period of 4 months. Where a night worker is employed for particularly hazardous work or for work that involves a significant physical or mental strain, no more than 8 hours shall be worked in a 24-hour period during which night work is performed. From July 1, 2024, all employers are required to adopt an objective, reliable, and accessible working time registration system that makes it possible to measure the daily working time for employees. Employers must ensure that employees have access to their information. This data must be kept for at least 5 years.
2026
2027
Under Denmark's Holiday Act, employees are entitled to 5 weeks of paid leave per year. Leave is earned continuously from September 1 to August 31 of the following year (12 months), and 2.08 days of paid leave are earned for each month of employment. Holiday pay is the same as the usual and fixed salary at the time of beginning of the leave. It is paid either at the same time as the corresponding holiday begins or holiday allowance for the period from 1 September to 31 May is paid together with the salary for the month of May, while holiday allowance for the remaining part of the holiday year is paid together with the salary for the month of August. For periods of employment of less than 1 month, the holiday is earned in proportion to the length of employment. Employees can earn and take their leave at the same time over a 16-month period. The right to paid annual leave does not accrue during periods in which the employee participates in a strike or lockout or during paid maternity or sick leave.
Employees who are unable to work due to illness or injury are entitled to sickness benefits under Denmark's Act on Sickness Benefits. Employees qualify for sickness benefits if they have been employed for at least 240 hours in the past 6 months, and for at least 40 hours in at least 5 of these months. The employer pays sickness benefits to employees on sick leave for 30 calendar days from the first day of absence. After the first 30 calendar days of sickness, the municipality will pay the employee's sickness benefits. Sickness benefit paid by the municipality is capped at DKK 5,085 (Danish krones) per week (or DKK 137.43 per hour) in 2026. An employee may receive sickness benefits for up to 22 weeks within any 9-month period; the municipality reassesses the entitlement before the 22-week mark, and the period may be extended if required. Salaried employees are entitled to full pay from their employer for the first 30 days of sick leave absence, while most collective agreements provide the same for hourly employees. It can be stipulated in the written employment contract that the employee may be terminated with 1 month's notice of resignation at the end of a month when the employee has received salary during illness for a total of 120 days within a period of 12 consecutive months.
Denmark's Maternity Act grants a combined total of 52 weeks of shared parental leave, with up to 4 weeks reserved for the mother prior to birth. After the birth of a child, each parent has an individual right to 24 weeks of paid parental leave with maternity benefit: 2 weeks mandatory leave must be taken by each parent immediately after birth. For the non-birthing parent, this 2-week leave must be taken within the first 10 weeks after birth. 9 additional weeks are earmarked (non-transferable) to each parent, bringing total earmarked leave to 11 weeks per parent. Earmarked weeks that are not used by the parent to whom they are allocated are forfeited and cannot be transferred. 13 weeks of each parent's 24-week entitlement may be transferred to the other parent. Parents of multiple births receive 26 additional weeks of paid leave - 13 weeks per parent. Single parents of multiples receive an additional 13 weeks on top of their 46-week entitlement. Adoptive parents who are staying abroad to receive a child are entitled to leave from work for up to 4 weeks before receiving the child. In the first 10 weeks after receiving the child, each of the adopters has the right to leave for 6 weeks. Each adopter has the right to transfer up to 4 weeks of their leave to the other adopter. Adoptive parents also have the right to 32 weeks of parental leave. Each parent has the right to leave for 26 weeks after the death of the child if the child is stillborn or dies before the age of 18. Beginning January 1, 2026, eligible employees can extend maternity leave from 3 months to 12 months if their newborn child must be hospitalized. Employees are also entitled to the extended leave if their newborn is sent home for continued treatment.
The non-birthing parent, the father, co-mother, or other legal parent who did not give birth has an individual right to 24 weeks of paid parental leave with maternity benefit after the birth of a child: The law provides a 2-week paid parental leave to fathers or co-mothers after the birth or after receiving the child at home, within 10 weeks after the birth. This leave can be taken as non-consecutive periods within the first 10 weeks after the birth, in agreement with their employer. 9 additional weeks are earmarked (non-transferable) to the non-birthing parent. 13 weeks of the 24-week entitlement may be transferred to the other parent. Each parent has the right to leave for 26 weeks after the death of the child if the child is stillborn or dies before the age of 18. Beginning January 1, 2026, eligible employees can extend maternity leave from 3 months to 12 months if their newborn child must be hospitalized. Employees are also entitled to the extended leave if their newborn is sent home for continued treatment. Adoptive parents who are staying abroad to receive a child are entitled to leave from work for up to 4 weeks before receiving the child. In the first 10 weeks after receiving the child, each of the adopters has the right to leave for 6 weeks. Each adopter has the right to transfer up to 4 weeks of their leave to the other adopter. Adoptive parents also have the right to 32 weeks of parental leave. Employees receive parental benefits if they have worked at least 160 hours in the last 4 full months, and at least 40 hours per month in at least 3 of those months. The benefit is paid as a maximum of DKK 5,085 (Danish krone) per week before tax. To get the full paternity benefit amount, the employee's income must be at least DKK 264,420 per year.
Denmark's labor law stipulates that employers must give notice before terminating a salaried employee. The termination notice period applicable to both the employee and employer is often stated in the collective agreements for hourly employees. For salaried employees, the notice period is dependent on their years of service, ranging from 1 month to 6 months. If the employment relationship is temporary and does not exceed 1 month, no notice period is required. If the employment is probationary and does not exceed 3 months, the employer must provide at least 14 days' notice, while the employee is not required to give notice.
The law in Denmark entitles dismissed salaried employees to severance pay if the employee has been continuously working for the same company for at least 12 years. Severance is paid only if the employee was dismissed or unjustifiably dismissed by the employer Severance benefits are provided as follows: Employees are entitled to 1 month’s salary if they have worked for the same employer for at least 12 years Employees are entitled to 3 months of salary if they have worked for the same company for at least 17 years Severance pay is payable regardless of whether the employee is retiring or going on pension at the time of dismissal.
In Denmark, people are entitled to retirement income through 3 different pension schemes: a public/state pension (statutory pension), a pension created through employment (labor market pensions), and an individual pension. To receive the full pension amount, a person must have lived in Denmark for at least 40 years. A person who has lived in Denmark for fewer than 40 years between the ages of 15 and retirement age can receive a partial pension. The state pension retirement age for employees in Denmark is: Date of birth Public retirement age 31 December 1953 or earlier 65 1 January 1954 - 30 June 1954 65½ 1 July 1954 - 31 December 1954 66 1 January 1955 - 30 June 1955 66½ 1 July 1955 - 31 December 1962 67 1 January 1963 - 31 December 1966 68 1 January 1967 to 31 December 1970 69 1 January 1971 or later 70 The state pension consists of a basic pension and a supplemental pension. If a person earns more than a certain income, they can become ineligible to receive part or all of their basic pension and pension supplement.
An employer is required to pay benefits to a surviving spouse and children in case of an employee's death: 1 month's salary if the employee has worked for 1 year 2 months' salary if the employee has worked for 2 years 3 months' salary if the employee has worked for more than 3 years The Labor Market Business Insurance handles workers' compensation claims. There are 3 possible benefits for survivors who lost someone to a workplace accident or occupational disease: a transitional allowance, compensation for the surviving spouse, partner, or children, and special compensation for surviving dependents. The compensation rates are (effective April 1, 2026): Maximum compensation for surviving dependent, spouse: DKK 197,400 Compensation for surviving dependent, child, 10% maximum: DKK 39,480 Compensation for surviving dependent, child, 15% maximum: DKK 59,220 Compensation for surviving dependent, child, 20% maximum: DKK 78,960
Denmark's Act on Social Services provides disability assistance for people with permanent physical and mental impairments. The Government of Denmark pays entirely for disability pensions without any contributions from the employees or the employers. Municipalities are responsible for supporting individuals, and district councils decide on the type and amount of assistance. The application for a pension is to be submitted to the municipal council. To be approved for disability, individuals have to show that their ability to work is substantially and permanently reduced to such a degree that work of any kind is impossible. Applicants must go through a rehabilitation program first to see if their ability to work can improve. A disability application will be denied if the applicant's ability to work improves with treatment and activity unless the applicant is within 5 years of retirement age. Disability payments are subject to income tests. From April 1, 2026, to March 31, 2027, permanent disability pension payments for work-related injuries are up to DKK 315,840 annually. Eligible individuals may be subject to different requirements and amounts. Rates are adjusted annually on January 1 to add 2% to the adjustment percentage for the financial year under consideration, taking into account taxation, salary adjustments, interest rates, and mortality. The Danish Supreme Court ruled that injuries sustained while working from home fall within the scope of the Workers' Compensation Act, provided the injury arises from the work or the conditions under which it is performed (regardless of location). Persons with permanent disabilities can also apply for other assistance, including supplemental income for additional expenses.
The income tax year in Denmark is the same as the calendar year. Taxes are paid on the national and municipal levels, and there are additional taxes for church affiliation. Married couples are taxed individually. Children are also taxed individually. A personal allowance of DKK 54,1000 (Danish kroner) applies to the personal income of taxpayers for 2026. Residents are subject to the following taxes for the year 2026, depending on the type of income: Equity income - 27% below the income of DKK 67,500 and 42% above it Employment income - 8% tax on income over a deduction of 10.65% of the income (limited to DKK 63,300). There is an additional deduction of 11.50% provided to single parents, limited to a maximum of DKK 50,600 Bottom tax - a tax that everyone who has income pays on the amount of personal income that exceeds the personal allowance - 12.01% Middle-bracket tax - 7.5% - applies to personal income exceeding DKK 641,200 after labor market contribution, or if an individual has capital income that exceeds the bottom-bracket tax of DKK 55,000 Top tax - 7.5% of the personal income that exceeds DKK 777,900 after labor market contribution Additional top tax - 5% applies to personal income that exceeds DKK 2,592,700 after labor market contribution Tax ceiling on personal income - total tax rate on the personal income, municipal tax + health contribution + bottom tax + top tax) - 44,57% Health contributions - tax abolished from 2019
The immigration law of Denmark requires a visa for entry into the country unless the individual is exempt from the visa requirements. The following individuals are exempt from the visa requirements:
Denmark issues national long-stay visas and Schengen visas, valid for all Schengen countries. The visa is valid for 180 days, but a continuous stay in any Schengen country is limited to 90 days. Foreign nationals who wish to study in Denmark are required to obtain a residence permit.
Citizens from the Nordic countries, the European Union (EU), European Economic Area (EEA), and Switzerland are entitled to work in Denmark without a permit. However, persons who are EEA or Swiss citizens and intend to reside in Denmark for more than three months must apply for an EU residence document. Other foreign nationals who wish to be employed in Denmark are required to obtain work permits. The Danish Immigration Service concludes a contract of employment with the foreign national who has the right to be advised about the terms of employment either orally or in writing. From January 1, 2026, foreign employers/service providers who post third-country nationals to Denmark must, when registering in the RUT (Register of Foreign Service Providers), upload: Copy of the service agreement between the foreign company and the Danish company Copies of the employment contracts of the individuals providing the service Copies of applicable work and residence permits (for non-EU posted workers) Beginning January 1, 2025, foreign employees are required to carry a valid identification document and present it during inspection visits by the Danish Working Environment Authority or the Danish Agency for International Recruitment and Integration. Non-compliance may result in fines.
