What are the benefits of working in Denmark?
Posted on September 3, 2020
If you have planned an overseas career in Denmark and have landed a job there and plan to move there, you will be happy to know that there are a lot of benefits of working in Denmark.
Denmark is known for the ‘flexicurity’ (flexibility and security) it offers to employees. The concept is based on a welfare state which combines a flexible labor market with social security for all employees.
Working hours and paid time off
According to a 2019 OECD report, Denmark ranks first in terms of providing work-life balance to its employees. This is reflected in the working hours which is only 37 hours per week and where overtime is not allowed to exceed 48 hours per week.
Employees are entitled to five weeks of the paid holiday if you have worked for one calendar year before the beginning of the holiday year.
There is no fixed minimum wage in Denmark. The minimum salary is fixed through labor market agreements that are negotiated between unions and business associations.
The minimum salary in the country are around 110 DKK per hour.
Since Denmark is a welfare state, the taxes are high. The taxes are used towards payment for certain universal critical services are universal regardless of the income. Here is a table of the tax rates:
8.00% up to 50,543 DKK
40.20% up to 50,543- 577,174 DKK
56.50% up to 577,174 DKK and above
Social security benefits
If you are working in Denmark and make a payment towards social security, you are entitled to social security benefits which include:
- Family benefits that include maternity and child benefits, and childcare
- Health benefits such as free public healthcare, sickness benefit and leave Home care services including care of close relatives who are disabled or ill
- Incapacity benefits include benefits in case of sickness, injury, invalidity, and old-age pension.
Apart from this, you will be entitled to unemployment benefit if you have paid unemployment insurance for at least a year.
To avail of the social security benefits, you must have a social security number or CPR number which you must apply for as soon as you reach Denmark.
Parents in Denmark can avail 52 weeks of parental leave. Maternity and paternity leave and benefits are divided as follows:
|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|
Understanding Danish culture will make the transition easier. Their culture is characterized by flat hierarchy, teamwork, flexible working hours, and an informal work atmosphere.