Denmark has been rated one of the easiest places to do business in Europe and is a very competitive economy, offering companies a range of opportunities to grow and expand.

There is no national minimum wage in Demark, but there are collective bargaining agreements in some industries and more than 65% of workers in Denmark are members of different unions.

Employment contracts must be sent to the Danish tax authorities, along with a personal registration number (CPR) each month. Every employee must have a login credential (Nem-ID) to access government services and view personal tax details. Each company must have an administrator who helps employees obtain their Nem-ID.

In accordance with the labor laws of Denmark, employees are entitled to sickness benefits for the first 14 days they are absent from work. After 14 days and up to one year, benefits are paid by the local authority at a rate of 90% of the employee’s salary. EU and Swiss citizens who would like to stay in Denmark for longer than 3 months must obtain an EU residence permit. All other foreign nationals must apply for a residence and work permit to live and work in Denmark. There are several options for work and residence permits to off-set worker shortages for specific skills, and a fast track scheme to speed up the visa process.

Blue Marble can help simplify your payroll and compliance in Denmark, with our easy-to-use technology with aggregated, customized reporting. You can view your payroll across all countries and currencies, and ensure your payroll is running accurately and in compliance with local regulations. Our hybrid service model gives you a US-based service team and direct access to in-country providers in Denmark to help when questions come up. Get your payroll and compliance under control with integrated, cloud-based solutions. To learn more about simplifying your global payroll, click here