Grow Your Workforce in Denmark

Income Tax in Denmark

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

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.