Our Expertise
Managing a global workforce in Denmark
Managing a global workforce in Denmark requires an understanding of the local work culture, which values work-life balance, employee autonomy, and flat hierarchies. TopSource Worldwide helps align your global workforce strategies with these cultural norms, ensuring smooth business operations and facilitating the integration of international employees into the Danish work environment.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Denmark
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Denmark. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Denmark-based employees.
End-to-end Denmark payroll services
Looking to expand into Denmark? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Denmark expansion initiatives.
Global entity management
Venturing into the Danish market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Denmark
Entering the Danish market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Denmark.
Denmark Insights
Key insights into Denmark's landscape
VAT rates: Denmark's standard VAT rate is 25%. There are no reduced or zero-rated VAT categories.
Ease of Doing Business rank: Denmark ranked 4th in the World Bank's Ease of Doing Business index in 2020.
Consumer Confidence Index: Denmark's Consumer Confidence Index increased to 99 in July 2023.
Employee maternity/paternity leave: In Denmark, maternity leave is 18 weeks and paternity leave is 2 weeks, with additional shared parental leave.
Employee termination period: Notice periods in Denmark vary from 1 to 6 months, depending on employment duration and agreements.
Employee salary pay date: Typically, employee salaries in Denmark are paid monthly, often on the last banking day of the month.
Bank holidays: Denmark's bank holidays include New Year's Day, Easter, Great Prayer Day, Ascension, Constitution Day, Christmas, and others.
An overview of employing in Denmark
Social security in Denmark is largely financed by state taxes. All employees working in Denmark who are fully tax liable to Denmark will be mandatory members of the Danish social security scheme and are obliged to make social security contributions (ATP).
Employers are expected to make contributions per employee. An exemption may be obtained in the case of foreign workers if there is a totalization agreement in place between Denmark and the home country/jurisdiction.
Denmark provides public healthcare to citizens and residents, largely funded through tax-payer contributions.
Contractual provisions
Standard working hours are 37 hours weekly. The maximum working hours per week should be no more than 48 hours (calculated on average, over a four-month period) including overtime.
A probationary period of three months is standard practice in Denmark.
Many people working in Denmark are employed on the basis of the Danish Salaried Employees Act (funktionærloven). Funktionærloven, like collective bargaining agreements, includes laws concerning the employment relationship with regard to, among other things, termination, sickness, parental leave, and competition and customer clauses.
Employees will usually expect to be compensated for any time worked in excess of 37 hours per week. It may be possible to include an all-inclusive compensation to cover incidental overtime. Our Contracts team will be able to advise on this during the contract drafting stage.
All employees over the age of 18 years old are entitled to:
- A daily rest period of at least 11 consecutive hours.
- A break during any working day lasting more than six hours. The length of the break depends on its purpose.
- One rest day (24 hours) per week that must be in connection with a daily rest period. No more than six days are allowed between two rest days.
A night worker may not work more than 8 hours per 24-hour period on average.
An employee earns the right to 2.08 days of paid holiday for every month they work in the course of a year from 1 September – 31 August the following year. This period is called the accrual year.
Vacation days may then be spent in the concurrent holiday period from 1 September to 31 December the following year (16 months). The new Holiday Act also permits employees to take paid holiday provided that an agreement is made between the employer and employee.
Employees either receive their regular salary during their holiday or they can receive holiday pay, corresponding to 12.5 per cent of their salary in the accrual year and a holiday supplement of 1 per cent.
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