How do you hire a Denmark employee in 2026?
Denmark sets no minimum wage in law. Your pay floor comes from the sector collective agreement (overenskomst) that covers the role, not a national rate. Get the right agreement before you name a salary, then run the five-step hire.
· Denmark guide
Illustration · Copenhagen, Denmark
The Denmark hire process has five steps. Offer letter, work-authorisation check, written contract, ATP and payroll registration, first payday.
Denmark has no minimum wage in law. Pay is set by the sector collective agreement that covers the job. Probation can run up to 3 months. During probation, the employer gives 14 days notice.
Most office staff are salaried employees under the Salaried Employees Act (Funktionærloven). After 6 months, employer notice is 3 months and rises with service. ATP pension costs the employer kr 198/month.
What does the end-to-end Denmark hire process look like?
Five steps take you from accepted offer to first payslip. Offer letter, work-authorisation check, written contract, ATP and payroll registration, first payday.
Check the right sector collective agreement first. It sets the pay floor, since no national minimum wage exists.
| Step | What happens | Owner | Timing |
|---|---|---|---|
| 1. Offer letter | Written offer with role, salary, start date, probation terms, and the relevant collective agreement | Client / Teamed drafts | Same day after verbal accept |
| 2. Work-authorisation check | Confirm EU/EEA or Nordic status, or verify a Danish residence and work permit for non-EU nationals | Teamed | Before the employee starts |
| 3. Written employment contract | Written terms covering pay, hours, probation, and notice, given inside the first week under the Employment Certificate Act | Teamed (legal employer) | Within 7 days of start |
| 4. ATP and payroll registration | Register for ATP Livslang Pension, set up eIncome reporting to SKAT, and collect the tax card | Teamed | Days 1 to 7 |
| 5. First payday | First payslip issued; AM-bidrag of 8% and A-tax withheld, ATP and holiday allowance of 12.5% accrued | Teamed | End of first payroll month |
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Issue the offer letter
Send a written offer the same day as verbal acceptance. Check the right sector collective agreement first, since no legal wage floor exists. Include role, salary, start date, probation of up to 3 months, and notice during probation of 14 days.
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Complete the work-authorisation check
Confirm EU, EEA, or Nordic status by collecting a passport or national ID, or verify the Danish residence and work permit for non-EU nationals before the start date. Retain copies of all documents.
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Issue the written employment terms
The written terms must reach the employee inside the first week under the Employment Certificate Act. Teamed's standard Denmark terms cover the Salaried Employees Act floor. Clients choose commercial terms; Teamed signs as the legal employer.
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Register for ATP and payroll
Register the employee for ATP Livslang Pension and set up eIncome reporting to SKAT. Collect the CPR number, tax card, holiday account, and bank details. This runs across the first week.
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Issue the first payslip and file deductions
Run the first payroll at the end of the first calendar month. Withhold AM-bidrag and A-tax, accrue ATP and holiday allowance, and report to SKAT through eIncome. The employee receives their payslip and is on the payroll record.
What must a Denmark offer letter include?
The offer letter is not the binding contract. It is the document the candidate decides against.
Name the role, reporting line, start date, gross monthly salary, working location, the collective agreement that applies, probation of up to 3 months, and notice during probation of 14 days.
Three traps to avoid in Danish offer letters:
- Naming a salary before checking the agreement. Denmark has no legal wage floor. The sector collective agreement (overenskomst) sets the minimum for the role. Quote a figure that clears it, or you reopen the offer later.
- Treating the offer as the written contract. The offer is commercial. The written terms must follow inside the first week under the Employment Certificate Act and carry the full statutory detail.
- Leaving out holiday allowance. Holiday allowance of 12.5% of gross salary accrues on top of pay under the Holiday Act. Say how holiday pay works so the candidate reads the package correctly.
Teamed's standard Denmark offer letter template covers all required ground and points to the correct collective agreement. Clients choose commercial elements. Teamed holds the legal-employer position and issues the final written terms.
Denmark work-authorisation checks for new hires
EU, EEA, and Nordic citizens can work in Denmark without a permit. Non-EU nationals must hold a Danish residence and work permit before their first day.
Employing a non-EU national without the correct permit is an offence under the Danish Aliens Act (Udlændingeloven).
EU, EEA, and Nordic citizens
Citizens of EU and EEA states and the other Nordic countries have the right to work in Denmark. EU/EEA nationals who stay beyond three months register for an EU residence document with the Danish Agency for International Recruitment and Integration (SIRI), and everyone working in Denmark gets a CPR number (the personal registration number) and a tax card. The employer keeps a copy of the passport or national ID as a standard identity record.
Non-EU nationals
Every non-EU national must hold a valid Danish residence and work permit before starting. Common routes include the Pay Limit Scheme for higher-salary roles, the Positive List for occupations short of labour, and the Fast-Track Scheme for certified employers. Each route has its own salary and documentary requirements, and processing times vary, so allow several weeks for a new application.
The Salaried Employees Act governs the core terms for most office and commercial staff in Denmark, including probation limits, graduated notice periods, and statutory severance. Many of its rules cannot be set below the legal floor by contract.
Source: Retsinformation: Funktionærloven (Salaried Employees Act)
Ongoing permit renewals
Work permits in Denmark are time-limited. Employers must track expiry dates and start renewal well ahead of the deadline. Teamed monitors each permit expiry and alerts the employee and client before the renewal date so no lapse occurs.
The Denmark written contract: what must it contain?
Denmark requires written employment terms for any job lasting more than 3 weeks at more than 3 hours a week.
The key terms must reach the employee inside the first week of work under the Employment Certificate Act (Ansaettelsesbevisloven).
What the Denmark written employment terms must cover under the Employment Certificate Act and the Salaried Employees Act:
- Names and addresses of both the employer and the employee
- Place of work
- Job title or a description of the work
- Start date of employment
- The collective agreement that applies, where one does
- Gross salary, pay components, and pay interval (monthly for most salaried staff)
- Working hours, within the maximum average week of 48 hours
- Paid annual holiday of 5 weeks and holiday allowance of 12.5% of gross salary under the Holiday Act
- Probation terms where agreed, capped at 3 months for salaried employees
- Notice each side must give: 1 month from the employer in the first 6 months, then 3 months, rising to a maximum of 3 months plus more with long service
- Pension arrangements, including ATP and any agreement pension
Denmark calls this the ansaettelsesbevis (employment certificate), the local equivalent of the UK Section 1 statement or Germany's Nachweisgesetz statement. The salaried-employee terms in the Salaried Employees Act sit on top of it and cannot be cut below the legal floor by contract. Teamed's standard Denmark terms satisfy both. Clients choose commercial terms; Teamed signs as the legal employer.
Key source: Funktionærloven (Salaried Employees Act) via Retsinformation.
Onboarding admin in the first week
Days 1 to 7 cover the written terms, the CPR number and tax card, ATP registration, eIncome setup, and bank details.
Teamed handles the registrations. The client handles the operational side.
| Onboarding task | Who does it | Day |
|---|---|---|
| Written employment terms issued | Teamed | By day 7 |
| Work-authorisation check completed | Teamed | Day 0 (before start for non-EU nationals) |
| CPR number confirmed and tax card collected from SKAT | Employee with Teamed | Days 1 to 7 |
| ATP Livslang Pension registration | Teamed | Days 1 to 7 |
| eIncome (eIndkomst) reporting setup with SKAT | Teamed | Days 1 to 7 |
| Holiday account (FerieKonto) and feriepenge setup | Teamed | Days 1 to 7 |
| Bank account details collected for payroll | Teamed | Days 1 to 7 |
| Equipment and system access | Client | Days 0 to 1 |
| Manager introduction and first-week plan | Client | Days 0 to 7 |
| 30-60-90 day plan documented | Client (manager) | Days 1 to 14 |
How does Teamed handle Denmark employment for you?
Teamed becomes your legal employer of record in Denmark for from $599 per employee per month, with zero FX mark-up in any currency.
The Salaried Employees Act, ATP, holiday allowance, and SKAT reporting all run on one platform.
Real HR and legal experts handle your Denmark hires, from the first offer letter through every monthly A-tax, AM-bidrag, and ATP filing. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice, including ATP at kr 198/month.
EOR payroll, contractor onboarding, and entity setup all live on one platform. A Denmark contractor who converts to direct employment keeps their record. Run the Crossover Calculator to see when your Denmark hire is ready to graduate to your own entity. EOR is the right model for a first Denmark hire, until it isn't. Start from the Denmark hiring overview; each guide here takes one layer of Danish employment law.
Key sources: Funktionærloven (Salaried Employees Act), SKAT labour market contribution, and ATP contribution rates.
Frequently asked questions
Is there a minimum wage in Denmark?
No. Denmark has no statutory minimum wage. Pay floors are set by sector collective agreements (overenskomster) negotiated between employers and trade unions, not by national law. The right agreement for the role decides the minimum you can pay, so confirm which agreement applies before you name a salary.
How long does it take to hire someone in Denmark through Teamed?
Teamed can onboard an EU, EEA, or Nordic citizen within a few business days once the offer is accepted. The written employment terms must reach the employee inside the first week under the Employment Certificate Act. ATP and SKAT registrations are completed in the first week. Non-EU nationals who need a Danish residence and work permit must have it in place before the start date, which adds lead time depending on the permit route and processing queue.
What is the probation period in Denmark and what notice applies during it?
For salaried employees under the Salaried Employees Act, probation is capped at 3 months. During an agreed probation of up to three months, the employer can end the employment with 14 days notice. Once probation ends, the longer graduated notice periods apply.
What notice period applies after probation ends?
For a salaried employee, the employer gives 1 month notice in the first 6 months of service. After 6 months it rises to 3 months, then increases by one month for every three further years of service, up to a maximum of 6 months after more than 9 years. The employee's own notice is shorter and set by the same Act.
What pension and holiday costs apply when hiring in Denmark?
Every employee joins ATP Livslang Pension. The total ATP contribution for a full-time private-sector employee is kr 297/month, split as kr 198/month from the employer and kr 99/month from the employee. On top of pay, holiday allowance of 12.5% of gross salary accrues under the Holiday Act, funding 5 weeks of paid annual holiday.
How many public holidays does Denmark have?
Denmark has 10 days public holidays in 2026. Great Prayer Day (Store Bededag) was abolished from 2024, which reduced the count. Public holidays are observed through the church calendar and collective agreements rather than a single paid-holiday statute, so paid-holiday treatment can depend on the applicable collective agreement.
Companies hiring in Denmark for the first time look for a minimum wage and find none. The number that matters is the sector collective agreement rate, and naming a salary below it reopens the whole offer. Check the agreement before you talk money, not after.
Denmark writes no minimum wage into law. The sector collective agreement sets the floor, and it changes the salary conversation completely.
Probation caps at three months for salaried staff, with just two weeks' notice inside it. After six months the notice jumps to three.
The written terms land in week one. ATP and holiday pay follow on the first payslip.
