In Denmark, the following must be adhered to under strict local legislation:

• Samlet Betaling Payable Quarterly
• 25 Days’ Vacation
• No minimum wage

How does payroll work in Denmark?

In Denmark, there are no mandatory pension contributions. Any scheme that is opened is negotiated by the employee and employer on a case-by-case basis. Such schemes can be split between both parties, or paid entirely by the employer.

Employers are required to contribute into Samlet Betaling on a quarterly basis. This is an overarching Government Body that collects and contributes funds into a variety of schemes aimed at improving the local labour markets for employers.

What are the general employment rules?

Full time employment in Denmark is 37 hours per week. There are no Danish laws surrounding Overtime, however, the EU Working Time Directive does apply. This states that employees must not work more than 48 hours in any given week. In cases whereby Overtime is offered, it is common for a rate of 150% to be payable for the first three hours and 200% thereafter.

What about dismissing an employee?

To dismiss an employee in Denmark, a process must be followed and sufficient grounds supplied. We recommend speaking with one of our Employment Experts before engaging in the termination process.