Denmark EOR & PEO services
Denmark offers a diverse range of PEO/EOR employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
PEO/EOR employment termination and notice period in Denmark
There is no “at-will” termination in Denmark. In order to terminate the employment contract of an employee, sufficient reasoning must be provided. The notice period in Denmark is fixed by law. Employees with an indefinite employment contract are entitled to a notice period of 1 to 6 months, depending on the length of the employment and the type of the employment contract.
| Length of employment | Notice Period Denmark |
| < 6 months | 1 month |
| 6 months to 3 years | 3 months |
| 3 years to 6 years | 4 months |
| 6 years to 9 years | 5 months |
| > 9 years | 6 months |
*If a termination is made after 5 and a half months of employment, the notice period is 3 months, not 1 month. This is because of the fact that with a notice period of 1 month, the employee has been employed for more than 6 months at the time of termination.
Fixed-term contracts can be terminated automatically on their expiry date or upon completion of specified tasks. To learn more about fixed-term contracts in Denmark we invite you to read this blog on Fixed-Term Contracts in Denmark, Germany and France.
In Denmark, there are no general rules or regulations when it comes to severance pay. The only aspect that is set is that salaried employees who have been in continuous employment for 12 to 17 years are entitled to a severance payment of between 1 to 3 months’ salary. Some collective bargaining agreements also include rules on severance pay that depend on seniority.
As the Danish PEO and EOR provider is the formal employer of your employees in Denmark, they are also responsible for terminating the contract while applying the applicable French terms.
PEO/EOR employment in Denmark: Salary, employer costs and working hours
In Denmark, salary can be determined in various ways: individually, between the employer and employee and your employer, or partly collectively through agreements with a trade union.
The average annual wage in Denmark was $58.430. This is lower than the average annual wage in the United States: $69.392
As an employer through PEO/EOR services in Denmark, the actual employer costs are around $2,388 higher than the gross annual salary. Based on a $ $58.430 annual salary, the employment costs would be $60.818
See all average salaries in Europe in 2024
In Denmark, the standard working week is 37 hours. By law, the maximum average working hours cannot exceed 48 hours per week. A lunch break of 30 minutes is normal. In the public sector, lunch breaks are usually paid, which is not always the case in the private sector. Employees are entitled to at least one day off per week.
Paid vacation leave and public holidays in Denmark EOR/PEO employment
Denmark has a “concurrent holiday” system, meaning that employees earn the holidays each month. Employees earn 2.08 days of paid holiday every month, for a total of 25 days per year. Employees begin to accumulate their holidays on September 1, and run through August 31 of the following year. In general, employees accrue 12.5% of your salary in holiday allowance.
- New Year's Day - 1 January
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Maundy Thursday – 28 March
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Good Friday –29 March
- Easter Monday – 1 April
- Ascension Day – 9 May
- Bank closing Day - 10 May
- Whit Monday – 20 May
- Constitutional Day - 5 June
- Christmas Eve - 24 December
- Christmas Day – 25 December
- 2nd Christmas Day – 26 December
Social Security tax for Denmark EOR/PEO employers
Danish employers must, just like other employers in European countries, pay social contributions to their employees. However, compared to most other European countries, the social security contributions are low in Denmark.
On average, as a PEO/EOR employer in Denmark, you pay around $ 199 per month and $ 2.388 per year. In the table, you can find an overview of the taxes you, as an employer in Denmark, have to pay on an annual basis.
To learn more about the social security tax in Europe, we invite you to read this article on Social Security Tax Rates for Employers Across Europe.
*Industrial injury insurance is calculated based on the type of industry, number of employees, and the used insurance company.
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Monique Ramondt-Sanders
CCO & VP of HR Outsourcing