Employer of Record and Payroll Services in Denmark
|Cserve owned legal entity
- Employer of record
- Contractor management
- Global payroll
- In-country payroll
Cserve offers complete payroll, PEO and HR services in Denmark
Backed by a solid educational system and a broad-based economy, Denmark is one of the world’s best places to visit and do business in. The country has a productive and motivated workforce, well-connected infrastructure and an innovation-friendly environment. Key industries include cleantech, life sciences, food, maritime and design and innovation. That said, Denmark has set its terror threat level at significant currently as right-wing extremism is rising and continues to be a threat.
Doing Business in Denmark#1 in Europe for ease of doing business according to the World Bank (2012-2020), Denmark is one of the world’s top locations for tech activities including Quantum Technology, Robotics and Wireless and Mobile Technology. Registering a company is easy and quick to do. Download PDF
Setting up a new business or expanding an existing one in Denmark is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.
Banking Hours: from 10:00 am – 4:00 pm from Monday to Friday (except Thursday) till 5:00 pm.
The standard working week is from Monday to Friday from 6:00 am – 6:00 pm.
Denmark operates Flexicurity which means that employers can easily hire and fire to adjust to market conditions and yet, protect the welfare of employees. The Danish Financial Act allows foreign labor to apply for jobs in certain industries where labor is lacking, which opens up for more skilled foreign workers.
|Wind turbines, pharmaceuticals, medical equipment, shipbuilding and refurbishment
|Dates & Numbers
|Official State Name
|The Kingdom of Denmark
|International Dialing Code
Payroll in Denmark
Cserve payroll services in Denmark provide a fully managed payroll solution to process employees’ salaries and related financial transactions in compliance with Danish labor laws and regulations, ensuring accuracy, confidentiality, and timely payments.
Denmark does not impose a complicated or onerous tax system on foreign companies operating in the country. When it comes to Denmark payroll, foreign companies who need to comply with Danish tax laws have the following primary concerns: Individual income tax (IIT) for employees, social security costs, payroll tax, VAT, withholding tax, business tax, and permanent establishment.
However, you need not worry if you plan to hire or carry out payroll in Denmark since we do the hard work for you. With experience, expertise, and smart payroll technology, our UK-based payroll team delivers industry-leading outsourced payroll services. As one of the largest payroll provider in Demark, Cserve is a leader in the industry.
As a specialist payroll service provider in Denmark, we can help your team navigate ever-evolving regulations by taking the hassle out of complex and time-consuming payroll processes, including managing Real Time Information (RTI), reporting, and pension auto-enrolment. You can rely on our dedicated payroll experts to respond to all your payroll-related queries and your requirements in real time
Salary conditions are generally determined by collective agreements or individual agreements between companies and employees. Pay levels and agreement terms vary across sectors.
Employer of Record (EOR) in Denmark
PEO in Denmark
Cserve PEO (Professional Employer Organization) services in Denmark provide a comprehensive HR outsourcing solution for foreign companies to establish a local presence, compliantly hire and manage employees, handle HR, payroll, benefits, tax compliance, and other administrative tasks, while reducing costs and administrative burden.
Through our PEO in Denmark, we provide services that are flexible and cost-effective for companies seeking to outsource their HR and payroll processes. As a Professional Employer Organization, Cserve offers a range of services including employee benefits, payroll administration, and compliance with Danish employment laws. By entrusting their HR and payroll needs to Cserve, companies can focus on their core business activities and ensure a smooth and efficient HR operation.
Tax and Social Security
Danish Customs and Tax Administration (SKAT) manages and enforces tax laws. All employees are mandatory members of the Danish social security scheme and obliged to pay social security contributions
The corporate tax rate is below the OECD average and Denmark presents a tax-efficient location compared to other Nordic countries.
|Corporate Income Tax
|Personal Income Tax
The Danish state provides subsistence payments for individuals who have lost their livelihood due to illness, divorce or unemployment and for those who do not qualify under other social welfare schemes (such as pension or unemployment benefit).
|Social Security Rate
|Social Security Rate for Employers
|Social Security Rate for Employees
There are several types of regulations including applicable legislation, executive orders and WEA (Working Environment Authority) guidelines. Employers can hire and fire at will. An employee can pay for unemployment insurance which provides unemployment benefits for up to two years after losing their job.
A collective agreement is an agreement between two parties that define working conditions that apply to workers in a specific company or industry. Neither Danish nor foreign companies are legally required to comply with or conclude a collective agreement.
Strikes are generally uncommon as both employers and employees feel a sense of duty in reaching agreement on issues. The EU’s Working Time Directive defines the framework for working hours including a daily rest period, a maximum weekly working hours of 48 hours and no more than six days between two days off.
At minimum, an employee is entitled to the length of holiday and pay that applies according to the Danish Holiday Act. Should the holiday scheme in the employee’s home country be less favorable than the Act, the employee may accumulate additional paid leave during their posting in Denmark.
An employer must always have a good reason for terminating an employee such as unfitness or any other situation which the company may consider dismissal (such as work shortage or restructure). The termination notice period must be stated in the employment contract.
Citizens from a Nordic country may freely live and work in Denmark. Citizens from an EU or EEA country or Switzerland may apply for a EU registration certificate on arrival. For all other citizens, all the necessary applications and documentation needs to be coordinated with the ICS (International Citizen Service).
For foreign workers intending to stay in Denmark for longer than three months, the registration process varies depending on the nationality of the worker. Nordic citizens shall apply for a CPR number and a tax card. EU/EEA/Swiss citizens shall apply for an EU residence document with which they can then apply for a CPR number (Danish ID) and a tax card. Others will need to apply for a residence and work permit prior to applying for a CPR number and tax card.
|Work Permit validity
EU national requirements:
Compliant, reliable, error-free and touchless payroll in Denmark
Build the best team and hire top talent compliantly in Denmark. Get in touch with Denmark payroll outsourcing & PEO specialists for a free consultation!
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