Payroll
Denmark
- Experts in Danish law
- Personal contact person
- Highly flexible
- Get paid on time. Every time.
Population
5.790.000+
Currency
Danish Krone (DKK)
Capital
Copenhagen
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:
Services
- 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.
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:
Your business profile should include accurate and updated registered business numbers and other identifications for submission of statutory documentation, including tax forms and invoices.
Make sure your policies match based on the location and nature of your business, especially if you have several business sites located throughout Denmark.
Clear, transparent, and compliant leave policies that align with Danish laws and regulations are essential for operating your business in Denmark succesfully.
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.
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
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]