Employment taxes

Denmark has a progressive income tax system, with rates ranging from 8% to 56.5%, depending on your income level.

If you're employed by a company, they’ll also cover several payroll contributions like pension, insurance, education, and maternity leave funds, adding up to around DKK 945 per month, plus a 0.45% tax on your annual salary (to compensate for the Great Prayer Day). You don't need to worry about anything, as they handle it all for you.

Leave policy

• Vacation Leave: In Denmark, you earn 2.08 days of paid vacation each month, totaling 25 days (5 weeks) per year. Thanks to the concurrent holiday system, you can start using your vacation days as you earn them. You're encouraged to take at least 15 consecutive days (3 weeks) between May 1 and September 30, which is considered the main holiday period.
• Public Holidays: Denmark has 10 paid national holidays, including Christmas, Easter, and Constitution Day.
• Sick leave: Employees are entitled to 30 days of paid sick leave, covered by the employer, after which the Danish Social Security system takes over.
• Parental leave: Denmark offers generous parental leave; you can take up to 52 weeks in total, split between both parents, with the option to extend the leave period. You’ll receive benefits from the state during this time.

Employment termination

• Notice period: The notice period depends on the length of your employment with your employer. The minimum is 2 week and it extends with more years of service.
• Termination must be in writing and follow fair and objective reasons, such as voluntary termination by the employee, both you and your employer agree to part ways, or if the employer ends the contract because of performance issues, misconduct, during the probation period, or when a fixed-term contract expires.

Hiring & Contracts

• Contracts: Contracts in Denmark are typically written, and they must be signed by both parties (employer and employee).
• Details: The contract should include important information, such as your job title, start date, salary, work hours, and vacation days.

Payroll and salary payments

• The standard workweek in Denmark is 37 hours, usually Monday to Friday, with 7.4 hours per day.
• Overtime pay isn’t guaranteed by law, but it is often included in collective agreements. If included, it usually means bonus pay or extra time off.
• Salaries are usually paid once a month, usually at the end of the month.
• You may also receive a Holiday Allowance (Ferietillæg)—a legally required bonus paid out during vacation time. It’s usually 1% of your previous year’s salary, and it’s often paid out in May.
• Bonuses and allowances, such as performance bonuses, transportation subsidies, or lunch perks, may be part of your package, depending on the employer.

Benefits

• Health insurance: Many companies provide supplementary health insurance.
• Pension schemes: Most employers contribute to a pension fund.
• Wellness programs often include gym memberships or fitness programs.
• Work flexibility: Remote work and flexible hours are common.
• Childcare assistance: Some companies offer subsidized daycare and on-site childcare.

Monthly living costs (Copenhagen edition)

Living in Copenhagen is a bit pricey, but totally worth it. Here’s a rough idea of what you might spend each month:

• Rent: Around DKK 9,000–12,000 for a one-bedroom apartment in the city.
• Groceries: About DKK 2,000–3,000, depending on how much you love cooking (or snacks).
• Transport: A monthly public transport pass costs about DKK 400–600.
• Going out (coffee, drinks, dinners): Budget around DKK 1,000–2,000 if you enjoy social time out.
• Utilities & Internet: Expect around DKK 800–1,200 combined.

Getting Your Local ID Number (CPR)

To settle in properly, you’ll need a CPR number; it’s your key to public services like healthcare and banking. You can get it at the International Citizen Service once you’ve registered your address and have your work permit sorted. It’s straightforward, but make an appointment early; slots fill up fast.

Social security registration

If you’re working in Denmark, you’re automatically part of the social security system once you have your CPR number. It covers topics such as healthcare, unemployment, and pensions. There's no need to do anything special; it’s all built into your job and taxes.

Banking

Opening a bank account is easy once you have your CPR number.

• Some of the popular banks are Danske Bank, Nordea, Jyske Bank, and Nykredit.
• You’ll use your NemID or MitID (a digital ID) for most banking and online government stuff. Don’t worry, it sounds more complicated than it is.

Housing and rentals

Finding a place to live can be a challenging task, especially in Copenhagen. Many people start by joining Facebook groups or using rental platforms like BoligPortal or Lejebolig. Tenants in Denmark have solid rights, so once you’re in, you’re well protected. Read your lease carefully and ask questions if anything seems unclear.

Healthcare

Once you’ve got your CPR number, you’re in the public healthcare system, and it’s excellent. You’ll receive a yellow health card (sundhedskort) with your assigned doctor's details. Most visits are free, and if you ever need a specialist, your doctor will refer you.

Driving and public transport

Public transport is clean, reliable, and easy to use. The metro, buses, and trains are all connected. Biking is huge here, Copenhagen is one of the most bike-friendly cities in the world. If you drive, please note that you’ll need a valid license and may need to convert it if you plan to stay long-term.

Emergency numbers and contacts

• Emergency (Police, Fire, Ambulance): 112
• Non-emergency Police: 114
• Medical Advice (non-emergency): 1813
• Find a doctor or dentist: borger.dk

Work permit and Visa

If you're from the EU/EEA, you’re good to go - no visa is needed. Just register and obtain your CPR number. If you’re from outside the EU, you’ll most likely need a work permit to live and work in Denmark legally.

At Swapp Agency, we can help you with Work Permit Services and provide all the up-to-date information you need. Contact us for an offer, and we’ll walk you through the details.