Denmark PEO Services

A flourishing business environment in one of the world's happiest countries

Denmark is a nation that consistently comes out on top. For many consecutive years, it has ranked among the top locations worldwide for its business climate, with the World Bank labelling it as the leading country in Europe and the fourth-best globally in terms of ease of doing business. Expanding your business in this country can be highly advantageous due to its exceptionally low employer costs and social security rates, which are among the lowest in Europe.

The Danish economy is home to world-class firms across a variety of industries, with a particular emphasis on renewable energy. As a result of more than 40 years of ambitious energy policies, Denmark is now at the forefront of the fast-growing cleantech sector, and by 2050 it intends to be completely fossil fuel-free.

Denmark offers many opportunities for companies looking to expand, but without the right support, the process can be costly, time-consuming, and risky. Those challenges can be worked through more efficiently and cost-effectively with the help of a global Professional Employer Organisation (PEO) such as Procorre Global.

Working in Denmark

Expanding into Denmark can provide businesses with access to top talent, a culture of innovation, and a reliable and predictable business climate that can help drive growth and success.

Minimum wage

There is no official minimum salary in Denmark, however, as of 2023 most minimum wages in the country hover around 110 DKK per hour.

Working hours

The majority of sectors have 37 hours weekly, and usual working hours are Monday to Friday, from 8 or 9 AM to 4 or 5 pm. Maintaining a good work-life balance is very important to Danish people, and employers tend to discourage working overtime. Businesses largely shut down during the last weeks of July as Danes take time off to enjoy the short Danish summer.

Leave entitlement

In Denmark, all employees have a legal right to five weeks (25 days) of paid vacation annually, and the Danes are not shy about taking every minute of it. In 2020, Denmark rolled out a new holiday act changing the holiday year to run from September 1st to August 31st.

Denmark is frequently listed as having some of the best parental leave policies in the world, offering a total of 52 weeks of paid parental leave. Mothers are entitled to 4 weeks of leave before the expected delivery date, followed by 14 weeks after birth. Fathers are also entitled to take two weeks of leave during the first 14 weeks after the birth. The remaining 32 weeks can be shared between both parents as they see fit, offering a flexible approach to managing work and family life.

Employees who are absent from work due to illness are entitled to sickness benefits from the local authority for up to 22 weeks. However, from day 15, they must provide a medical certificate, and from day 30, the employer may receive a partial reimbursement from the municipality where the employee resides.

Notice periods

According to Danish labour law, an employer must provide a minimum of one month's notice to the employee when ending a contract that has lasted up to six months. The length of notice increases in proportion to the duration of employment, with contracts lasting ten years or more requiring six months' notice.

Public holidays

Denmark celebrates the following public holidays:

  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Easter Monday
  • General Prayer Day
  • Ascension Day
  • Bank Closing Day
  • Whit Monday
  • Christmas Day
  • St. Stephen’s Day
  • New Year’s Eve

Please note the above lists the national public holidays additional regional holidays may also apply, Collective agreements may also grant additional days.

Visas

Denmark's work visa system is designed to attract highly skilled professionals to the country, making it an attractive option for those seeking to work in Europe.

Nordic citizens can reside and work in Denmark without restrictions, while citizens of EU/EEA member states and Switzerland are subject to special regulations based on EU rules on freedom of movement.

If you are not a resident of Nordic, EU, or EEA countries, you must obtain a residence and work permit before entering Denmark. Applications are evaluated based on the applicant's qualifications and the type of work.

Taxes

In Denmark, citizens are subject to some of the highest tax rates globally, with payments sometimes reaching up to 50% of their earnings. Surprisingly, despite this substantial burden, the majority of Danes have a positive attitude towards paying taxes. Why? Because they can clearly see the benefits of their contributions.

An individual becomes fully tax liable by living in Denmark for more than six consecutive months. Denmark offers a favorable tax climate for businesses, with a corporate tax rate of 22% which is below the OECD average, as well as attractive tax rules for expatriates. A special taxation scheme is available for high-salaried expats, enabling them to pay a reduced income tax of 27% for up to 7 years.

Cultural information

Trust and community values are strongly rooted in Danish culture and society. Even when it comes to business, corruption in business or among public servants is very rare. In 2016, the Ministry of Culture even held a public vote to decide the country's official values, and trust came out on top.

The high levels of trust and safety in Denmark mean that children can enjoy much more freedom and independence, and it isn't uncommon to see children as young as age 8 or 9 travelling alone on public transport.

Languages

Denmark has one official language: Danish, being spoken by over 98% of the population. There are three minority languages including German, Faroese, and Greenlandic.

Danes are also taught English from a very young age and 86% of all Danes speak English as a second language.

Religion

Approximately 75% of the Danish population is Evangelical Lutheran, but less than a fifth of Danes see themselves as “very religious.”  Other religions include Islam (4%) and Roman Catholicism (3%).

The Danish Market - Did you know?

  • The Danish flag holds the Guinness World Record for being the oldest continuously used national flag, dating back to the Battle of Lyndanisse in 1219.
  • Denmark people are so trusting that it's not uncommon to find babies sleeping outside by themselves in backyards, parks, and even restaurants. The thinking goes that sleeping outside is good for the immune systems and reduces the risk of cough, colds, and infection by building natural immunity.
  • In Denmark, if you're still single when you turn 25, it gives people social license to cover you from head to toe with cinnamon. The tradition dates back hundreds of years to when spice salesmen would stay bachelors because they travelled so much.
  • The Danish language has a word that has no English equivalent - “Hygge” (pronounced hoo-gah). It is a unique term that defines cosy social gatherings and intimate get-togethers between family and friends.
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