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Posted on January 31 2023

What are the benefits of working in Denmark?

By  Editor
Updated February 22 2024

Benefits of working in Denmark

  • The average annual salary in Denmark is 331,261 DKK.
  • Denmark offers employee benefits like maternity and paternity leaves, private pension fund, affordable taxation, flexible work culture, social security benefits, etc.
  • The current unemployment rate in Denmark is 5.5%.
  • Employees are expected to work up to 37 hours per week in Denmark.

Nowadays, employees worldwide want to move to a different country than theirs in search of work benefits, work-life balance, and handsome pay. And, while discussing all of it, you must discuss Denmark. Denmark is a Scandinavian country known for its beautiful countryside and busy city life. As per the World Happiness Index 2023, Denmark was ranked as the second happiest country on earth, after Finland. The Danish people are very welcoming, friendly, and highly educated. There are a lot of work opportunities in the country for ex-pats, and the average annual salary here is 331,261 DKK. Also, the current unemployment rate in Denmark is 5.5%.

The below table highlights some important facts one should know before applying for a work visa in Denmark:

Currency kr. Danish Krone / DKK
Working Hours 37 hours / week. Regulated by collective bargaining agreements
Public/ Bank Holidays 11 days per year
Capital Copenhagen
Language Danish
Remote Workers 1.1 million
Minimum Hourly Salary 108 DKK
Tax Year 1st Jan - 31st Dec

Is Denmark a good country to work in?

Denmark is a highly desirable country to work in, offering a host of benefits to employees. One of the main advantages is the concept of "flexicurity," which combines a flexible labor market with robust social security protections. This means that employees enjoy a high degree of job security and flexibility. Additionally, Danish culture prioritizes work-life balance making it an ideal place for professionals with families. Denmark is an attractive destination for many looking to advance their careers.

Benefits of working in Denmark

Denmark provides many benefits to its residents, such as maternity and paternity leaves, private pension fund, affordable taxation, flexible work culture, medical insurance, bonus, etc. We will be discussing the benefits of working in Denmark in detail, one by one. The advantages offered by the Danish government for its residents have been discussed below:

Working Hours and Leave Entitlements: Denmark's standard working week is 37 hours, and overtime is not permitted in the country for over 48 hours over a quarter year. Regular working hours in Denmark are from 8 or 9 AM to 4 or 5 PM, and the work week is Monday to Friday.

Employees are entitled to five weeks (25 days) of paid holidays per year, and three of these weeks must be taken between May 1 and September 30. Additionally, 12 Danish national holidays occur each year.

Employees are entitled to five weeks (25 days) of paid holidays per year and the three of these weeks are required to be taken between May 1 and September 30. Additionally, there are 12 Danish national holidays occurring each year.

Minimum wage: The minimum wage in Denmark is determined by a collective bargaining agreement. The current minimum salary is around 110 DKK per hour, followed by most public and only a few private sectors, like the hospitality sector. The payday in Denmark varies from the last day of the month to the 15th day of the next month.

  • Tax-Free Allowances: The Danish government pays various tax-free allowances to its residents, such as:
  • Family Allowance: This is paid to individuals with one child or more. The individuals must be living in Denmark, a taxpayer, have a child less than 18 years of age, and a child should be Danish residents.
  • Personal Allowance: Danish residents who are employed are entitled to receive DKK 46,500 after paying the 8% AM-ta as a personal allowance.
  • Employment Allowance: The Danish government pays an employment allowance at a specific rate of the individual's salary. The current rate is 10.50%, and the allowance cannot exceed DKK 39,400.

Affordable Taxation: Denmark is a welfare state, so the taxes here are high. However, these taxes are used to fund critical services such as healthcare and social security benefits accessible to all, regardless of income. The below table shows the Danish Income Tax rates on different income levels:

Taxable Income Bracket Marginal Tax Rate including Labour Market Tax
DKK 0 - 46,700 8%
DKK 46,701 - 544,800 40%
Over DKK 544,800 56.5%

Social security benefits: Social security benefits in Denmark are comprehensive and include

  • Family benefits include child benefits, maternity, and childcare.
  • Healthcare benefits include sickness benefits, free public healthcare, and leave-home care services.
  • Incapacity benefits include benefits in case of invalidity, injury, old age pension, and sickness.
  • Unemployment benefits are also paid in Denmark. This can only be obtained after paying unemployment insurance for one year.

One will need to apply for an SSN or CPR number to access these benefits as soon as they reach Denmark.  One will need to apply for a SSN or CPR number to access these benefits as soon as they reach in Denmark.

Private Pension: All Danish employees are required to participate in the government pension plan. Workplaces provide private plans where employees contribute around 8% of their basic salary. There is also an additional contribution by the company at 16% of the employee’s earnings.

Parental and Maternity leave: Parental leave in Denmark is generous, with parents able to take a holiday for 52 weeks. Maternity and paternity leaves are also well-established, where the mother is entitled to take a pregnancy leave for four weeks before childbirth. The mother is also entitled to maternity leave for fourteen weeks after the child's birth. The father of the child can take paternity leave for two weeks of for the father after the child is born. Additionally, the parents can take a shared parental leave for thirty-two weeks. This leave is both for mothers and fathers. The below table will show you a clearer picture:

Length of leave Who can avail?
4 weeks before the birth Mother
14 weeks after the birth Mother
2 weeks after the birth Father
32 shared weeks For both mothers and fathers

Open and flexible work culture: The most common features of a Danish workplace culture include flexible working hours, a flat hierarchy, an informal work atmosphere, and teamwork. The country highly values work-life balance, which makes it one of the most family-friendly countries in the world. Almost all workplaces in Denmark allow every employee to take five weeks of vacation every year. In Denmark, it is effortless to schedule family vacations. The demand for flexible work hours is typical in the country as most men and women work.

Wish to apply to a Danish visa and need help to apply for it? Y-Axis is here to assist you in all the procedures. Join us, to fulfil your abroad dreams!

If you found this blog engaging, then also read…

What would a student love to know about Denmark?

How to apply work visa for Denmark?


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