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Employer of Record Denmark

Hire staff and expand your business in Denmark with our fully-managed EOR Service

How we can help

Unrivalled Employer of Record Service in Denmark designed to expand your business seamlessly

Agility EOR delivers services for business’s looking for an Employer of Record in Denmark. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.

We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Denmark takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.

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Employer of Record in Denmark

A Brief Guide to Denmark

Denmark is a Nordic country located in Northern Europe. It is known for its high standard of living, well-developed welfare system, and strong emphasis on sustainability and renewable energy. Denmark has a constitutional monarchy with a parliamentary system of government and is a member of the European Union, the United Nations, and other international organizations.

LocationNorthern Europe     
Largest CityCopenhagen     
Official LanguageDanish     
Area43094 square kilometers    
PopulationApproximately 5.8 million    
CurrencyDanish Krone (DKK)    
Major CitiesCities Aarhus, Odense, Aalborg, Esbjerg  
GDP-2020 $355.3 billion USD   
Human Development Index (HDI) 0.94 (very high) 
Major IndustriesManufacturing, services, renewable energy, and agriculture
Business Culture

Business Culture in Denmark

Danish business culture is characterized by a flat hierarchy, open communication, and a collaborative approach. Danes value equality, work-life balance, and consensus-based decision-making. Meetings are usually informal, and everyone is expected to contribute their opinions and ideas. Punctuality and preparedness are highly regarded, and business attire is typically casual yet professional. Building trust and long-term relationships are essential in Danish business culture, and networking and socializing play a significant role in business interactions.

Danes appreciate directness and honesty, and it’s important to provide well-reasoned arguments and facts in discussions. Overall, success in Danish business culture requires a collaborative and egalitarian mindset, adaptability, and a focus on building strong relationships.

Employer of Record Denmark
Payroll and Taxes

Payroll and Taxes in Denmark

Standard practice in Denmark is to have 12 pay months in a year. Employees are entitled to receive holiday pay, which is typically 12.5% of their annual salary and is paid out in May and/or June. Employees are also entitled to a mandatory pension scheme called ATP, to which both employees and employers contribute.

Employee Taxation

Income taxes are progressive, meaning that higher income levels are subject to higher tax rates. The rate of employee taxation depends on various factors, including the employee’s income level, marital status, and number of dependents:

Gross Annual IncomeTax Rate (%)
Up to DKK 50,7618%
Up to DKK 544,80042.83%
Over DKK 544,80056.5%

Employer Taxation

In addition to income tax, employers in Denmark are also responsible for various employer costs, which may include:



Employer Costs in DenmarkApprox % of Gross Salary
Social Security Contributions2%
Labor Market Contributions8%
Health Insurance Contributions0.67%

Arbejdsmarkedets Tillægspension (ATP)


Employer of Record Denmark
Employment Law

Employment Law in Denmark

Employment Contracts: In Denmark, employment contracts can be either written or verbal, but it is common practice to have written contracts that specify important details such as the duration of the employment, working hours, salary, and notice period for termination.

Working Hours: The standard maximum working time in Denmark is 37 hours per week or 7.4 hours per day. Overtime work is generally subject to an agreement between the employer and employee, and there are specific regulations for night work, Sunday work, and public holiday work.

Leave: Employees in Denmark are entitled to various types of leave, including paid annual leave (minimum of 25 working days per year), maternity leave, paternity leave, sick leave, and family care leave.

Termination: Termination of employment in Denmark is subject to notice periods that vary depending on the length of employment. Unjustified termination can result in claims for damages or compensation.

Employees Rights: Employees in Denmark have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. There are also regulations related to working conditions, workplace safety, and employee representation.

Collective Bargaining Agreements:

Collective bargaining agreements are commonly used in Denmark and cover many aspects of employment, including wages, working hours, and other employment conditions. These agreements are negotiated between employers’ organizations and trade unions.

Pension and Healthcare

Denmark Pensions

A mandatory employer-funded pension scheme called ATP (Arbejdsmarkedets Tillægspension) exists in Denmark. This requires employers to contribute to their employees’ retirement savings. In addition, employees in Denmark can also participate in voluntary pension schemes offered by employers or set up their own private pension plans.

Healthcare in Denmark

A universal healthcare system exists in Denmark, which means that all residents are entitled to healthcare services regardless of their income or employment status. The healthcare system is funded through a combination of taxes and social health insurance contributions from employees and employers.

Employer of Record Denmark

Wondering if expanding
in Denmark is right for you?

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The Benefits

Denmark Employer of Record Benefits

When you choose Agility EOR to expand in Denmark, we guarantee an Employer of Record Service tailored to the needs of your business


We are on top of regulatory changes in Denmark so you can relax.

Cost reduction

Allow our economies of scale to work in your favour.

High Service Levels

You and your employees have a dedicated account manager.

Fixed Cost Pricing

We will agree our professional fees up front based on your needs - no nasty surprises!

Consolidated Invoicing & Payments

Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.

Fast delivery

You can have 'boots on the ground' within days on our infrastructure.

Reduced Risk

All wage taxes are remitted in full to the Denmark authorities by professionals ensuring liabilities are met, giving you peace of mind.

Supply Chain Transparency

We only pay employees through local full employed solutions meaning Denmark payroll tax is paid on all funds.

Save Time and Money

Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira