Employee Cost Calculator
Hiring costs go beyond salary. Estimate the cost of your next hire with this calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertDenmark
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Accelerating your growth in Denmark and beyond
TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.
Meet our experts for Denmark
Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way.
Beyond a payroll serviceA globalization accelerator
Payroll platform
Global payroll simplified
Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity.
Audit
Eliminate barriers to growth
Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals.
Intelligence
Build a data-driven talent strategy
Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits.
Advisory
Expert guidance that turns complexity into clarity.
Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion.
Looking at other markets too?
We help organizations with employ and pay teams in over 180 countries.
Denmark payroll: frequently asked questions
A specialist provider runs your payroll in Denmark end to end — calculating gross-to-net pay in Danish krone (DKK), withholding A-tax (A-skat) income tax withheld via PAYE, applying ATP labour market supplementary pension and labour market contribution (AM-bidrag) where required, and filing and remitting to Danish Tax Agency (Skattestyrelsen) by the local deadlines. You keep managing your team while the compliance and administrative burden shifts to the provider, so you avoid penalties and stay current with local rules.
A-tax (A-skat) income tax withheld via PAYE is withheld from each employee’s pay and remitted to Danish Tax Agency (Skattestyrelsen). A provider applies the correct brackets, reliefs and deductions and files the required returns on time; resident and non-resident employees can be taxed differently, so accurate set-up matters.
Payroll in Denmark includes ATP labour market supplementary pension and labour market contribution (AM-bidrag), funded by employer and (where applicable) employee contributions. Welfare is funded mainly through taxes, so statutory social contributions are comparatively small. A provider registers your staff, calculates each contribution and remits it with the payroll cycle so nothing is missed.
On top of gross salary in Danish krone (DKK), employers typically fund their share of ATP labour market supplementary pension and labour market contribution (AM-bidrag) and any statutory levies or end-of-service entitlements. The labour market contribution (AM-bidrag) is withheld before income tax. Exact rates change with legislation, so a provider keeps your cost calculations accurate as the rules update.
Employers report and remit payroll deductions and contributions to Danish Tax Agency (Skattestyrelsen) and the relevant social bodies on the local statutory calendar. Missing a deadline triggers penalties, so a provider manages the full filing and payment schedule on your behalf.
To hire and pay staff directly you generally need a registered entity in Denmark plus the associated tax and social-security registrations, which takes time to set up. Alternatively, an Employer of Record (EOR) already has a compliant local entity and can employ, payroll and onboard your workers in Denmark without you incorporating.