I want to thank you for the impressive service and attention to my needs during the 3 plus years working in Denmark, the attention to my documents and scheduling of the appointments was very good.

Rodney Grubham, TotalEnergies




Danish Krone (DKK)



Table of Contents

Payroll Denmark

GTS Nordic offers comprehensive services related to Payroll in Denmark. 

For businesses and contractors in Denmark, payroll management is an essential aspect that requires strict adherence to Danish employment laws. Noncompliance not only leads to hefty fines and fees but also affects employee relations. At GTS Nordic, we provide expert payroll services to ensure compliance with Denmark’s employment regulations, allowing you to concentrate on other aspects of your business.

Our comprehensive payroll processing services cover various areas, including employee salaries, tax legislation, bonuses, and more. Some examples of the services we offer include:


  • Income, regional, and corporate taxes
  • Social security, including health insurance, unemployment benefits, and pension
  • Types of leaves and holiday compensation
  • Employee deductions
  • One-to-one guidance with your personal contact person
  • An easy payslip system (GTS Portal)
  • Full compliance throughout the entire process

Payroll Processing in Denmark

The payroll process in Denmark consists of three phases: pre-payroll, calculation, and post-payroll. Each stage of the process is guided by local legislation, which payroll experts at GTS Nordic are well-versed in.

To ensure a successful payroll process in Denmark, due diligence during the pre-payroll phase is crucial. At GTS Nordic, our payroll management expertise can guide you through the process, starting with setting up your organization.

Or you can skip the hassle and let GTS Nordic be your dedicated payroll provider.

Employer of Record in Denmark

Setting up the Organization

During the pre-payroll phase, it’s important to standardize and prepare your organization’s policies to ensure compliance with local labor laws. Some facets that you should pay attention to include:

Business Profile

Your business profile should include accurate and updated registered business numbers and other identifications for submission of statutory documentation, including tax forms and invoices.

Work Location

Make sure your policies match based on the location and nature of your business, especially if you have several business sites located throughout Denmark.

Attendance Policies

Clear, transparent, and compliant leave policies that align with Danish laws and regulations are essential for operating your business in Denmark succesfully.

Statutory Components

With comprehensive coverage of labor laws in Denmark, you need to secure in-house expertise or outsource to someone with in-country know-how to successfully implement Denmark’s labor requirements into your internal policies, such as GTS Nordic.

Salary Components

Employee salaries need to balance mandatory guidelines with company policies, including cost of living, market conditions, and industry averages, to determine base rates, deductions, and benefits.

Payroll Processing in Denmark: Payroll Calculation Phase

In Denmark, payroll calculation involves computing wages, which includes base rates, benefits, bonuses, taxes, contributions, and other deductions. Salary calculation in Denmark can be complex due to the nature of local law, which we are experts in at GTS Nordic. Software and payroll systems can make the process more efficient if calibrated correctly and aligned with the policies set during the pre-payroll phase. Our streamlined payroll system GTS Portal is designed to collect all the necessary information to stay compliant with ease.

Payroll Processing in Denmark: Post-payroll Phase

After salary computation, the post-payroll phase includes salary payments, accounting, reporting, and compliance. Payment processors or banks are notified to implement salary disbursement. Automated direct deposit features of software and solutions providers can make the process more cost-efficient. You need to account for salaries paid out as a significant business expense and report the numbers internally and externally. This includes submitting any statutory supporting documentation such as tax forms and invoices to the appropriate government body for compliance purposes.

Contact GTS Nordic to learn more about the three phases of Payroll Management in Denmark, and how we can help you stay compliant.

Minimum Wage in Denmark

Denmark’s compensation is largely governed by collective agreements, with a minimum wage of 138,75 DKK ($20 USD) per hour as of March 2023. The typical workweek is 37 hours with hours in the 6 a.m. to 6 p.m range. Overtime is capped at 48 hours per week and paid at various rates above the base minimum wage.

Employer Social Contributions

Employers in Denmark are required to pay social contributions to their employees of approximately EUR 2,000 per year per full-time employee. Employers are required to pay to a total of seven different schemes such as ATP, AUB, AES, AFU, Pension Finance Scheme, Maternity Leave Fund and Industrial Injury Insurance. Usually these contributions are not included in the fee when you select an Employer of Record (EOR) or Payroll Management Solution, but with a solution from GTS Nordic, we make sure that the required contributions are paid on time – without you having to pay extra.

Public Holidays

Denmark has several statutory public holidays, as well as “closing days” and days off established by collective agreements. Furthermore, it is possible to earn vacation days through the new Danish Holiday Act. The statutory public holidays in Denmark include:

Date Holiday
January 1

Thursday before Easter Sunday

Friday before Easter Sunday

Date varies between March 22 and April 25

Day after Easter Sunday

Fourth Friday after Easter

Sixth Thursday after Easter

Day after Whit Sunday

June 5

December 25

December 26
New Year's Day

Maundy Thursday

Good Friday

Easter Sunday

Easter Monday

Great Prayer Day

Ascension Day

Whit Monday

Constitution Day

Christmas Day

Second Christmas Day

Partner with GTS Nordic in Denmark

Outsourcing your payroll processing in Denmark can be a great way to ensure compliance and save time for your growing business. Partnering with a trusted payroll service provider like GTS Nordic can help you navigate the complex landscape of local labor compliance and focus on expanding your business. With expertise in Danish payroll regulations and processes, GTS Nordic can streamline your payroll operations and ensure accurate and timely payments for your employees.

Ready to take the next step?

Contact GTS Nordic
for a consultation and learn how our payroll solutions can benefit your business.

Contact GTS Nordic Denmark directly

Kalkbrænderiløbskaj 6A, 2100 Copenhagen, Denmark

+45 70 24 80 80
[email protected]