Looking to add Danes to your workforce? You’re not alone. The Danish education system cranks out a consistent flow of capable professionals in a wide variety of fields, especially IT, agriculture, and renewable energy. Plus, the workforce is English-proficient, hard-working, and creative.

Unfortunately, drawing in and hiring Danish workers isn’t as easy as posting a job ad. To find the best of the best, you must offer the minimum mandatory benefits required by Danish law. It can also be helpful to throw in supplementary benefits that matter to candidates.

This guide will cover labor laws in Denmark, mandatory and supplementary benefits, and how to build an effective employee benefits package for Danish workers. By the end, you’ll be equipped to maintain legal compliance as a Danish employer, and you’ll know how to wow candidates with an outstanding benefits package.

Labor Laws in Denmark

Pinpointing official Denmark labor laws without help can be exhausting. Unless you know the exact acts you’re looking for, it’s easy to get lost. On Denmark’s Ministry of Employment website, you’ll find an overview of employment laws with links to every piece of labor legislation you need as an employer.

A few of the main labor laws to know about include:

These are just a few of the laws – there are many more.

The above sources are in Danish, which could seem like a barrier initially. But in just a few clicks, you can either translate the text into English using your browser settings or copy and paste the information into an external translator. A couple of minutes spent on translation is 100% worth it; the official laws are your ultimate source of truth.

Mandatory Employee Benefits in Denmark

The sheer volume of labor laws in Denmark can be overwhelming, especially for those who are new to hiring in the country. But you don’t have to wade through the legalese alone. We’ve done the research for you and will share short versions of each of the mandatory employee benefits in Denmark below.

Social Security Contributions

The ATP Act covers social security contributions for Danish workers. Within the legislation, you’ll see that social security is a joint effort between workers and their employers.

As of 2024, employers have to withhold 1,188 DKK from the employee’s paycheck and contribute 2,376 DKK every year to the social security scheme. In addition to that, they have to make the following contributions:

Contribution Type Approximate Annual Cost (DKK)
Maternity Fund 1,500
Industrial Injuries Insurance 5,000
Public Social Security Schemes 5,300

Keep in mind that the contribution amounts vary widely. The job title, industry, company size, and insurance company all play a role. So, use the above values as a guide only – not solid fact.

Paid Annual Leave

Every year, Danish employees get to take 5 weeks of paid leave, equating to 25 days. These leave days are accrued at a rate of 2.08 days a month. Workers can take all of the days at once or a few days here and there as they’re accrued.

Parental leave (Maternity, Paternity, and Shared Parental Leave)

In Denmark, there are three types of parental leave: maternity, paternity, and shared parental leave. According to the Maternity Leave Act, mothers get 14 weeks of maternity leave – in certain cases, they can start the leave 4 weeks before the birth. Otherwise, it starts after the baby’s birth.

These benefits may be made available to the father or co-mother in cases where the baby’s mother dies or is too sick to administer childcare.

Expectant and new fathers are entitled to up to 2 weeks of paternity leave.

*This benefit is also available to co-mothers.

And shared parental leave is for both the mother and father – 32 weeks in total.

Here’s a table illustrating the different types of parental leave:

Type of LeaveLeave DescriptionLeave Duration
Maternity LeaveLeave for mothers, can start up to 4 weeks before birth.14 weeks (can start 4 weeks before birth)
Paternity LeaveLeave for fathers and co-mothers following childbirth.2 weeks
Parental LeaveLeave for both parents to share after childbirth.32 weeks

Sick Leave

Labor laws go into great detail on sick leave entitlements for employees. As an employer of Danish workers, you’re required to offer up to 22 weeks of sick leave during the last nine calendar months. To qualify for this benefit, workers must meet several qualifications, two of which are:

  • They can’t work because they’re ill or injured.
  • They pay Danish taxes

For the first 30 days of sick leave, you will pay the worker directly (in the amount of their full salary). After the 30 days are up, authorities in the worker’s local municipality will take over the payments. There are requirements workers must meet to receive these payments.

Workplace Injury Insurance

Workplace injury insurance, also called workers’ compensation insurance, is yet another benefit international employers should provide to Danish workers. It ensures that when workers are injured or become ill as a result of their job, they can get the money and assistance they need to bounce back. The cost of workers’ comp varies widely.

You should also make it a point to report every single work accident – failing to pay for workers’ comp insurance or report incidents could lead to hefty fines and penalties.

Termination Rights

The Civil Service Act makes termination/severance pay non-negotiable, but only in very specific circumstances. Here’s a breakdown of the pay obligations:

Years of EmploymentSeverance Pay
12 to 17 years1 month’s salary
17+ years3 months’ salary

There are situations when a worker won’t be eligible for termination pay even when they fall in one of the two categories listed above. For instance, if they are dismissed for a justifiable reason or resign themselves, they forfeit their severance.

Supplementary Employee Benefits in Denmark

Now that we’ve got the mandatory benefits covered, it’s time to get into supplementary benefits. These extras are not mandated by law, but they can help you reel in the best of the best talent. Plus, it’s always good to take care of your employees, and giving them supplementary benefits like the ones below shows that you care:

  • Dental and vision plans to help fill gaps in coverage.
  • Health insurance plans from private companies to supplement existing coverage.
  • Free snacks and meals provided on-site or as an allowance for outside purchases.
  • Paid sabbaticals to allow employees to rejuvenate and recharge.
  • More paternity, maternity, or paternal benefits than Danish law mandates.
  • Regular stipends for home office or workplace decor and equipment.
  • Memberships to gyms or yoga studios to encourage inner and outer well-being.

When it comes to supplemental benefits, you have quite a bit of creative freedom. So long as there are no rules against the benefit you want to provide, you’re okay to include it in your employee benefits package. Take some time, talk to candidates, and get a feel for what benefits mean the most to workers from Denmark.

If supplementary benefits are not in the budget, don’t worry. So long as you’ve got the mandatory benefits down, you’re in a really good spot. Supplementary benefits are extra – nice to have but not required.

How to Build an Effective Employee Benefits Package for Danish Workers

Ready to start building your employee benefits package? It’s best to have a plan in place before you start. Here are five steps to keep in mind as you’re working on it:

  • Look very closely at Danish labor laws to get a solid understanding of what’s expected of you as an employer of Danish workers. Simply skimming over the laws isn’t enough if you’re serious about expanding into the Danish market. Consult a lawyer if you need help in this area.
  • Select your supplementary benefits. Ensure that they are financially feasible for your company and bound to wow the candidates you’re searching for.
  • Compile the mandatory and supplementary benefits into a comprehensive document explaining the benefits, eligibility requirements, and any other information workers should know.
  • Distribute the benefit documentation as needed throughout the recruiting and hiring processes.
  • Keep your benefits package updated. It should reflect your business’s evolving needs as well as the changing labor laws in Denmark.

So, there you have it – all the basics surrounding Denmark labor laws and employee benefits in Denmark. We hope you found all the information you were looking for, and we wish you the best as you dive into the Danish talent pool.