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Under Denmark's Holiday Act, employees are entitled to 5 weeks of paid leave per year. Leave is earned continuously from September 1 to August 31 of the following year (12 months), and 2.08 days of paid leave are earned for each month of employment. For periods of employment of less than 1 month, the holiday is earned in proportion to the length of employment. Employees can earn and take their leave at the same time over a 16-month period.

The right to paid annual leave does not accrue during periods in which the employee participates in a strike or lockout or during paid maternity or sick leave.

Employees who are unable to work due to illness or injury are entitled to sickness benefits under Denmark's Act on Sickness Benefits. Employees qualify for sickness benefits if they have been employed for at least 240 hours in the past 6 months, and for at least 40 hours in at least 5 of these months. The employer pays sickness benefits to employees on sick leave for 30 calendar days from the first day of absence. After the first 30 calendar days of sickness, the municipality will pay the employee's sickness benefits. Sickness benefit paid by the municipality is capped at DKK 5,085 (Danish krones) per week (or DKK 137.43 per hour) in 2026. An employee may receive sickness benefits for up to 22 weeks within any 9-month period; the municipality reassesses the entitlement before the 22-week mark, and the period may be extended if required.

Salaried employees are entitled to full pay from their employer for the first 30 days of sick leave absence, while most collective agreements provide the same for hourly employees.

Denmark's Maternity Act grants a combined total of 52 weeks of shared parental leave, with up to 4 weeks reserved for the mother prior to birth. After the birth of a child, each parent has an individual right to 24 weeks of paid parental leave with maternity benefit:

• 2 weeks mandatory leave must be taken by each parent immediately after birth. For the non-birthing parent, this 2-week leave must be taken within the first 10 weeks after birth.
• 9 additional weeks are earmarked (non-transferable) to each parent, bringing total earmarked leave to 11 weeks per parent. Earmarked weeks that are not used by the parent to whom they are allocated are forfeited and cannot be transferred.
• 13 weeks of each parent's 24-week entitlement may be transferred to the other parent.

Parents of multiple births receive 26 additional weeks of paid leave - 13 weeks per parent. Single parents of multiples receive an additional 13 weeks on top of their 46-week entitlement.

Adoptive parents who are staying abroad to receive a child are entitled to leave from work for up to 4 weeks before receiving the child. In the first 10 weeks after receiving the child, each of the adopters has the right to leave for 6 weeks. Each adopter has the right to transfer up to 4 weeks of their leave to the other adopter. Adoptive parents also have the right to 32 weeks of parental leave.

Each parent has the right to leave for 26 weeks after the death of the child if the child is stillborn or dies before the age of 18. Beginning January 1, 2026, eligible employees can extend maternity leave from 3 months to 12 months if their newborn child must be hospitalized. Employees are also entitled to the extended leave if their newborn is sent home for continued treatment.

The non-birthing parent, the father, co-mother, or other legal parent who did not give birth has an individual right to 24 weeks of paid parental leave with maternity benefit after the birth of a child: The law provides a 2-week paid parental leave to fathers or co-mothers after the birth or after receiving the child at home, within 10 weeks after the birth. This leave can be taken as non-consecutive periods within the first 10 weeks after the birth, in agreement with their employer. 9 additional weeks are earmarked (non-transferable) to the non-birthing parent. 13 weeks of the 24-week entitlement may be transferred to the other parent.

Each parent has the right to leave for 26 weeks after the death of the child if the child is stillborn or dies before the age of 18. Beginning January 1, 2026, eligible employees can extend maternity leave from 3 months to 12 months if their newborn child must be hospitalized. Employees are also entitled to the extended leave if their newborn is sent home for continued treatment.

Adoptive parents who are staying abroad to receive a child are entitled to leave from work for up to 4 weeks before receiving the child. In the first 10 weeks after receiving the child, each of the adopters has the right to leave for 6 weeks. Each adopter has the right to transfer up to 4 weeks of their leave to the other adopter. Adoptive parents also have the right to 32 weeks of parental leave.

Employees receive parental benefits if they have worked at least 160 hours in the last 4 full months, and at least 40 hours per month in at least 3 of those months. The benefit is paid as a maximum of DKK 5,085 (Danish krone) per week before tax. To get the full paternity benefit amount, the employee's income must be at least DKK 264,420 per year.

Minimum Wage

There is no statutory minimum wage that applies to all employees in Denmark. Minimum wages are regulated by collective agreements at the sectoral level or negotiated individually between employers and employees.

Payroll frequency

The most common payment systems in Denmark are based on monthly wages, day wages, hourly wages, and piecework wages. Hourly, day, and piecework wages are generally paid once or twice a month, and monthly wages are naturally paid out monthly retrospectively.

Overtime, Holiday & Vacation Pay

There are no statutory provisions for overtime pay in Denmark, although collective agreements generally entitle the employee to compensatory time off or a pay supplement for working overtime hours. The law states that employees' working hours cannot exceed 48 hours in a week, including overtime. On Sundays and public holidays, the rate in collective agreements is usually 200% of the hourly wage. Danish employees are also generally entitled to 5 weeks of paid leave annually.

Notice Period

Denmark's labor law stipulates that employers must give notice before terminating a salaried employee. The termination notice period applicable to both the employee and employer is often stated in the collective agreements for hourly employees. For salaried employees, the notice period is dependent on their years of service, ranging from 1 month to 6 months.

If the employment relationship is temporary and does not exceed 1 month, no notice period is required. If the employment is probationary and does not exceed 3 months, the employer must provide at least 14 days' notice, while the employee is not required to give notice.

Severance Benefits

The law in Denmark entitles dismissed salaried employees to severance pay if the employee has been continuously working for the same company for at least 12 years. Severance is paid only if the employee was dismissed or unjustifiably dismissed by the employer

Severance benefits are provided as follows:

• Employees are entitled to 1 month’s salary if they have worked for the same employer for at least 12 years
• Employees are entitled to 3 months of salary if they have worked for the same company for at least 17 years

Severance pay is payable regardless of whether the employee is retiring or going on pension at the time of dismissal.

Pension

In Denmark, people are entitled to retirement income through 3 different pension schemes: a public/state pension (statutory pension), a pension created through employment (labor market pensions), and an individual pension.

To receive the full pension amount, a person must have lived in Denmark for at least 40 years. A person who has lived in Denmark for fewer than 40 years between the ages of 15 and retirement age can receive a partial pension.

The state pension retirement age for employees in Denmark is:

The state pension consists of a basic pension and a supplemental pension. If a person earns more than a certain income, they can become ineligible to receive part or all of their basic pension and pension supplement.

Dependents/Survivors Benefits

An employer is required to pay benefits to a surviving spouse and children in case of an employee's death:

• 1 month's salary if the employee has worked for 1 year
• 2 months' salary if the employee has worked for 2 years
• 3 months' salary if the employee has worked for more than 3 years

The Labor Market Business Insurance handles workers' compensation claims. There are 3 possible benefits for survivors who lost someone to a workplace accident or occupational disease: a transitional allowance, compensation for the surviving spouse, partner, or children, and special compensation for surviving dependents.

The compensation rates are (applicable till March 31, 2026):

• Maximum compensation for surviving dependent, spouse: DKK 192,420
• Compensation for surviving dependent, child, 10% maximum: DKK 38,484
• Compensation for surviving dependent, child, 15% maximum: DKK 57,732
• Compensation for surviving dependent, child, 20% maximum: DKK 76,968

Invalidity Benefits

Denmark's Act on Social Services provides disability assistance for people with permanent physical and mental impairments. The Government of Denmark pays entirely for disability pensions without any contributions from the employees or the employers. Municipalities are responsible for supporting individuals, and district councils decide on the type and amount of assistance.

The application for a pension is to be submitted to the municipal council. To be approved for disability, individuals have to show that their ability to work is substantially and permanently reduced to such a degree that work of any kind is impossible. Applicants must go through a rehabilitation program first to see if their ability to work can improve. A disability application will be denied if the applicant's ability to work improves with treatment and activity unless the applicant is within 5 years of retirement age. Disability payments are subject to income tests.

From April 1, 2026, to March 31, 2027, permanent disability pension payments for work-related injuries are up to DKK 315,840 annually. Eligible individuals may be subject to different requirements and amounts. Rates are adjusted annually on January 1 to add 2% to the adjustment percentage for the financial year under consideration, taking into account taxation, salary adjustments, interest rates, and mortality. The Danish Supreme Court ruled that injuries sustained while working from home fall within the scope of the Workers' Compensation Act, provided the injury arises from the work or the conditions under which it is performed (regardless of location).

Persons with permanent disabilities can also apply for other assistance, including supplemental income for additional expenses.

Personal Income Tax

The income tax year in Denmark is the same as the calendar year. Taxes are paid on the national and municipal levels, and there are additional taxes for church affiliation. Married couples are taxed individually. Children are also taxed individually.

A personal allowance of DKK 54,1000 (Danish kroner) applies to the personal income of taxpayers for 2026. Residents are subject to the following taxes for the year 2026, depending on the type of income:

• Equity income - 27% below the income of DKK 67,500 and 42% above it
• Employment income - 8% tax on income over a deduction of 10.65% of the income (limited to DKK 63,300). There is an additional deduction of 11.50% provided to single parents, limited to a maximum of DKK 50,600
• Bottom tax - a tax that everyone who has income pays on the amount of personal income that exceeds the personal allowance - 12.01%
• Middle-bracket tax - 7.5% - applies to personal income exceeding DKK 641,200 after labor market contribution, or if an individual has capital income that exceeds the bottom-bracket tax of DKK 55,000
• Top tax - 7.5% of the personal income that exceeds DKK 777,900 after labor market contribution
• Additional top tax - 5% applies to personal income that exceeds DKK 2,592,700 after labor market contribution
• Tax ceiling on personal income - total tax rate on the personal income, municipal tax + health contribution + bottom tax + top tax) - 44,57%
• Health contributions - tax abolished from 2019

Visas

The immigration law of Denmark requires a visa for entry into the country unless the individual is exempt from the visa requirements. The following individuals are exempt from the visa requirements:

• Citizens of Finland, Iceland, Norway, and Sweden
• Foreign nationals who are nationals of a country that is affiliated with the European Union
• Foreign nationals who hold an EU residence card issued in another Schengen country
• Foreign nationals who possess an EU residence card issued by a non-Schengen country when accompanying or joining the EU citizen
• Foreign nationals with a residence permit or long-term visa in another Schengen country
• Foreign nationals who are exempted from European Union visa rules
• Foreign nationals who are nationals of a country with which Denmark has entered into a visa-free agreement

Denmark issues national long-stay visas and Schengen visas, valid for all Schengen countries. The visa is valid for 180 days, but a continuous stay in any Schengen country is limited to 90 days. Foreign nationals who wish to study in Denmark are required to obtain a residence permit.

Work Permits

Citizens from the Nordic countries, the European Union (EU), European Economic Area (EEA), and Switzerland are entitled to work in Denmark without a permit. However, persons who are EEA or Swiss citizens and intend to reside in Denmark for more than three months must apply for an EU residence document.

Other foreign nationals who wish to be employed in Denmark are required to obtain work permits. The Danish Immigration Service concludes a contract of employment with the foreign national who has the right to be advised about the terms of employment either orally or in writing.

From January 1, 2026, foreign employers/service providers who post third-country nationals to Denmark must, when registering in the RUT (Register of Foreign Service Providers), upload:

• Copy of the service agreement between the foreign company and the Danish company
• Copies of the employment contracts of the individuals providing the service
• Copies of applicable work and residence permits (for non-EU posted workers)

Beginning January 1, 2025, foreign employees are required to carry a valid identification document and present it during inspection visits by the Danish Working Environment Authority or the Danish Agency for International Recruitment and Integration. Non-compliance may result in fines.

The legal working age in Denmark is 15 years, provided they have completed compulsory education. Young people who have reached the age of 13 can only be employed in limited types of light work. The total working hours for individuals between ages 13 and 15 years may not exceed 2 hours per day or 12 hours per week during school days and school weeks. Workers under the age of 15 may work up to 7 hours during non-school days but no more than 12 hours in any week. The law prohibits persons below the age of 18 years from being employed in occupations that are harmful to their health. The working time of young persons between ages 15 and 18 may not exceed 8 hours per day or 40 hours a week.

Employees below the age of 18 years must be given a break of 30 minutes after working for 4.5 hours. Young workers under 15 years of age may not be employed in night work and are entitled to daily rest of at least 12 hours.