Employee agreements

In Denmark, written employment contracts are required for employees working more than eight hours per week over a four-week period. These contracts must detail key terms including salary, working hours, holidays, and notice periods. Greenland typically follows similar practices, guided by Danish labor standards.

Probationary periods

Employers in Denmark can include a probation period of up to three months for salaried employees. During this time, notice periods typically run around 14 days. Greenland mirrors this structure, but local agreements can vary in detail.

Average working hours

The standard workweek in Denmark is 37 hours, and Danish labor laws emphasize work-life balance. Employees in Greenland generally follow similar schedules, though variations exist by industry and local agreement.

How an employer of record helps with the hiring process

Working with an EOR in Denmark enables companies to avoid entity setup, reduce compliance risk, and onboard talent more efficiently. Velocity Global’s EOR solution ensures full compliance with Danish and Greenlandic labor laws, so your team can focus on growth—not legalities.

Payroll cycles

Most employees in Denmark are paid monthly, typically on the last banking day of the month. Greenland follows a similar monthly payroll cycle.

Wages

There is no statutory minimum wage in Denmark or Greenland. Instead, wages are often governed by collective bargaining agreements (CBAs) negotiated between trade unions and employer associations.

Bonus payments

Bonuses are not mandated by law but are commonly offered as part of a competitive compensation package. Performance-based and annual bonuses are the most common types.

How an EOR helps run payroll

Velocity Global’s EOR solution handles everything from gross-to-net salary calculations to on-time, compliant payroll and tax withholdings. Our in-country teams understand local requirements and automate complex processes, helping companies avoid costly penalties.

Tax due dates

In Denmark, personal income tax returns are generally due by July 1 of the year following the income year. In Greenland, the tax year follows the calendar year, with filings typically due around May 1.

Tax thresholds

In Denmark, individuals are subject to progressive tax rates, with a top marginal rate of about 55.9%, including local and national taxes (Taxation in Denmark). Greenland applies a flat-rate income tax, typically ranging from 42% to 44%, depending on the municipality.

Health insurance

Denmark provides universal health care funded through taxes. All residents, including foreign workers with valid permits, are entitled to free access to the public healthcare system. Greenland also provides tax-funded healthcare.

Pensions

Employer pension contributions in Denmark are not required by law, but are often mandated through CBAs. A common arrangement includes a 12% employer contribution to occupational pension schemes. Greenland follows similar practices, usually negotiated through labor agreements.

How an EOR helps calculate and manage taxes

Velocity Global ensures accurate and timely tax filings, as well as compliance with evolving tax regulations. Our experts manage payroll taxes, pension contributions, and reporting requirements for your supported employees.

Annual leave

Employees in Denmark are entitled to five weeks (25 days) of paid vacation each year, as outlined in the Holiday Act (Ferieloven). In Greenland, employees are entitled to five weeks of paid leave by law.

Parental leave

New parents in Denmark are entitled to 52 weeks of combined maternity, paternity, and parental leave, with various compensation rates depending on the type of leave. Greenland offers a 17-week maternity leave, with some parental leave options depending on local policies (The Ministry of Employment).

Sick leave

Employees in Denmark receive full pay for up to 30 days of illness, after which the state may provide sickness benefits. Greenland provides similar protections, typically outlined in collective agreements.

Holidays

Denmark recognizes 11 public holidays, including Christmas Day and Constitution Day. Greenland observes national holidays such as National Day (June 21), alongside select Danish holidays.

How an EOR helps manage leave and PTO

Velocity Global ensures that all leave entitlements are tracked, documented, and processed in compliance with local laws and collective bargaining agreements (CBAs). From vacation accrual to parental leave support, we help companies manage time-off with ease.

Federal benefits

Statutory benefits include healthcare, paid leave, and unemployment insurance contributions. These benefits are typically funded through employer taxes and mandatory contributions.

Supplemental benefits

Employers often enhance employee packages with private healthcare, gym memberships, meal vouchers, and stipends for phone or transportation. Supplemental pensions and life insurance are also common among white-collar roles.

How an EOR helps administer benefits

Velocity Global’s EOR solution enables employers to offer attractive benefits without managing multiple vendors. We administer both statutory and supplemental global benefits through local partnerships and our Global Work Platform™.

Notice periods

Danish employment law mandates notice periods that vary by tenure. For example, employees with six or more years of service must receive a four-month notice. Greenland generally follows similar guidelines.

Severance pay

There is no general statutory requirement for severance pay in Denmark, unless it is stipulated by contract or a collective bargaining agreement. However, employers must still observe the correct termination process to avoid claims of unfair dismissal.

How an EOR helps process terminations

From preparing final payslips to ensuring proper notice and documentation, Velocity Global supports compliant offboarding. Our in-country experts help mitigate risk while providing a smooth experience for departing employees.