Employment law, compensation, equity, and visas for hiring in Denmark.
Employment Types
Comparison
Type
Employer Costs
Benefits
Flexibility
Full-time Employee
Highest (+ benefits)
5 weeks vacation, pension, insurance
3-6 month notice
Contractor (Freelancer)
Medium (invoice rate)
None (handled by contractor)
High (project-based)
Consultant (via firm)
Highest (hourly rate)
None
Very high
Intern
Low (often unpaid/stipend)
Minimal
3-6 months
Employee vs Contractor
Use contractors when:
Project-based work (e.g., design, one-off development)
Testing before hiring full-time
Specialized expertise needed short-term
Hire employees when:
Core team members
Long-term relationship expected
Offering equity compensation
Misclassification risk: SKAT can reclassify contractors as employees if they work exclusively for you, follow your schedule, use your equipment, etc. This results in back taxes and penalties.
Employment Law
Key Employment Rights
Benefit
Requirement
Notes
Vacation
5 weeks (25 days) per year
Paid at 12.5% of annual salary
Sick leave
Paid from day 1
Employer pays first 30 days, then municipal reimbursement
Parental leave
52 weeks total
Paid by government, not employer (after initial weeks)
Notice period
1-6 months (by seniority)
Longer for older employees
Pension
Usually 8-17% of salary
Split between employer and employee
Employment Contract Requirements
Must be provided within 1 month of start date:
Job title and description
Start date
Salary and payment schedule
Working hours
Vacation entitlement
Notice period
Pension scheme details
Termination Rules
Notice periods (by law):
First 3 months: 14 days
3-6 months: 1 month
6 months - 3 years: 3 months
3+ years: Up to 6 months (increases with tenure)
Severance pay: Required if employee has 12-17+ years of service (1-3 months salary).
Important: Denmark has strong employee protections. Get legal advice before terminating employees to avoid wrongful dismissal claims.
Compensation
Salary Benchmarks (2026)
Note: Salary ranges are approximate based on market data. For current benchmarks, check Glassdoor or ask other founders in your network.
Role
Junior
Mid-level
Senior
Software Engineer
350-450k DKK
500-650k DKK
700-900k DKK
Product Manager
400-500k DKK
550-700k DKK
750-950k DKK
Designer (UI/UX)
350-450k DKK
500-650k DKK
700-850k DKK
Sales/BD
350-450k DKK
500-700k DKK
700-1M+ DKK
Marketing
350-450k DKK
500-650k DKK
700-900k DKK
Note: Ranges vary by company stage, funding, and individual experience. Add 20-30% for employer costs (pension, vacation accrual, social contributions).
Total Employer Costs
Beyond gross salary, expect these additional costs:
Pension: 8-12% employer contribution (typical)
Vacation accrual: 12.5% of salary (5 weeks)
AES (social contributions): ~1-2% of salary
ATP: Small annual fee (~1,200 DKK/year)
Insurance: Workers' compensation, liability
Total: Salary × 1.25-1.30 as true cost
Benefits Startups Typically Offer
Pension: Required, typically 8-12% total contribution
Health insurance: Optional, ~2,000-4,000 DKK/year per employee
Lunch: Popular perk, fully/partially subsidized
Phone/laptop: Standard for most roles
Home office allowance: ~1,000-2,000 DKK/month
Learning budget: 5,000-20,000 DKK/year for courses/conferences