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Labor Laws in Denmark

  • Annual Leave: 25 days
  • Maternity Leave: 18 weeks
  • Public Holidays: 11
  • Workweek: 37 hours per week.

Income Tax in Denmark

Individual income taxes are progressive, ranging from 12% to 52.7% based on the worker’s earnings and location.

Value Added Tax (VAT) in Denmark

The standard VAT is 25%.

Social Security in Denmark

Social security contributions for employers and employees are as follows:

Employer Contributions

  • Employers pay contributions to seven types of social security schemes.
  • The total employer contributions are modest, averaging around EUR 2,140 (DKK 15,900) per year per full-time employee.

Specific employer contributions include:

  • ATP (labor market supplementary pension): DKK 2,376 per year
  • Maternity fund contribution: estimated at DKK 1,350 per year
  • Industrial injuries insurance: estimated at DKK 5,000 per year, varying based on industry.
  • Other public social security schemes: estimated at DKK 5,300 per year.

Employee Contributions

  • Employees make minimal contributions to social security in Denmark.
  • The main employee contribution is to the ATP (labor market supplementary pension): DKK 1,188 per year.
  • The employer deducts employee social security contributions from the employee's gross salary before income tax is calculated.

Work Visas in Denmark

Types of Work Visas in Denmark:

The Positive Listincludes professions experiencing a shortage of qualified workers. If a non-EU citizen has a job offer in one of these professions, they can apply for a Danish work permit under this scheme.

The Pay Limit Schemeis for foreign professionals with an annual pay exceeding a certain threshold.

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