Employer of record in Denmark: costs and rules
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The part of a Danish employee's cost we can price is about DKK 14,000 to 17,000 a year in fixed employer contributions, including the employer share of ATP, or 5.4% to 6.6% of a DKK 258,000 salary, according to Deloitte's Denmark Highlights 2026; a required occupational injury policy is extra, and so is the EOR service fee: $199 (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster) a month (October 2026). The mistake US companies make is budgeting a payroll tax percentage: Danish charges are mostly flat amounts, and the cost that moves with salary is the labor-market pension that collective agreements and contracts often set at 8% to 12% from the employer.
An employer of record in Denmark is a Danish company that employs your hire, pays the fixed employer contributions, insures them against occupational injury and runs payroll, while you manage the work.
- Currency
- DKK
On this page
Why Danish payroll does not look like US payroll
There is no percentage-based employer social security tax in Denmark. The employee pays an 8% labor-market contribution (AM-bidrag) plus a fixed DKK 99 a month ATP share. The employer's side is a set of fixed levies, so its percentage falls as pay rises: DKK 14,000 to 17,000 is 5.4% to 6.6% of DKK 258,000 but only 2.7% to 3.3% of DKK 516,000.
- No statutory minimum wage. Pay floors come from collective agreements.
- Probation: up to 3 months for salaried employees if agreed. During it the employer gives 14 days' notice and the employee none.
- Notice for salaried staff (Salaried Employees Act): 1 month in the first 6 months, 3 months up to 3 years, 4 months up to 6 years, 5 months up to 9 years, then 6 months. The employee gives 1 month. Notice must be in writing.
- Payroll is monthly.
We have not yet confirmed Denmark's holiday allowance, annual leave, public holidays, standard hours or severance rules from an official source. Ask your EOR for the terms it applies and check them with the Danish Working Environment Authority or Business in Denmark.
Employment costs and rules in Denmark
| Item | Denmark |
|---|---|
| Employer social contributions | About DKK 14,000 to 17,000 per employee per year in employer social charges (ATP and other fixed levies), about 5% to 7% at the sample salary; no percentage-based employer social security tax |
| What the employer pays | Employer fixed contributions (ATP employer share, AER, AES occupational injury, maternity fund, and others): about DKK 14,000 to 17,000 per year per full-time employee in total (secondary; item amounts not confirmed); Occupational injury insurance (private policy) required; Labor-market pension (often 8% to 12% employer) is set by collective agreement or contract, not statute |
| Caps and ceilings | Charges are mostly fixed amounts, not percentages, so there is no salary cap concept |
| Employee contributions | 8% labor-market contribution (AM-bidrag, a tax on gross pay) plus fixed ATP of DKK 99/mo (secondary) |
| Minimum wage | No statutory minimum wage; collective agreements set pay floors |
| Probation | Up to 3 months if agreed (salaried employees, Salaried Employees Act); employer notice during probation 14 days, no notice required from the employee |
| Notice period | Salaried employees: employer 1 month (0-6 months of service), 3 months (6 months-3 years), 4 months (3-6 years), 5 months (6-9 years), 6 months (9+ years); employee 1 month. Contract or collective agreement may differ; termination must be in writing |
| Payroll frequency | Monthly |
| Sample salary used | DKK 258,000 per year, about USD 40,000 at an assumed 6.45 DKK/USD (rate not fetched); a typical Danish professional salary is much higher |
| Employer cost on that salary | 5.4% to 6.6% (DKK 14,000 to 17,000); 6.4% to 7.6% with the 1% holiday supplement (unconfirmed) |
Checked October 16, 2026. Source type: secondary (Deloitte Denmark Highlights 2026, Jan 2026). Sources are listed at the end of this page.
What an EOR charges to employ someone in Denmark
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
What hiring one person in Denmark costs
DKK 258,000 is about USD 40,000 at an assumed 6.45 kroner per dollar, a rate we did not confirm. That is well under typical Danish professional pay, which is why the fixed charges look large here.
| Line | Per year |
|---|---|
| Gross salary | DKK 258,000 |
| Fixed employer contributions (ATP employer share, AER, AES, maternity fund and others) | DKK 14,000 to 17,000 |
| Share of salary | 5.4% to 6.6% |
| Salary plus fixed contributions (partial: insurance and pension not included) | DKK 272,000 to 275,000 |
| Occupational injury insurance (private policy) | Insurer-priced |
| Labor-market pension, if the contract or agreement requires it | Set by agreement |
| EOR fee at $599 a month (USD) | $7,188 |
Source: Deloitte Denmark Highlights 2026 (Jan 2026), a secondary source; item amounts not confirmed on atp.dk or virk.dk. Fee: the $599 Deel and Remote list price on Oct 16, 2026, kept in USD because we did not confirm a krone rate. Checked Oct 2026.
Arithmetic: 258,000 + 14,000 = 272,000 and 258,000 + 17,000 = 275,000. The fee is $599 x 12 = $7,188 ($2,388 at $199, $4,788 at $399, $8,388 at $699). A pension of 8% to 12%, if your offer includes one, adds DKK 20,640 to 30,960 on this salary, more than the statutory charges. Price other pay levels with the international cost calculator.
Working through notice in Denmark
Notice is the Danish exit cost to plan for. Someone hired through an EOR and let go after 4 years is owed 4 months' notice. Multiplier says it sets its deposit from employment costs, fees and notice periods, so long Danish notice can raise the amount you put down. Ask each provider how it calculates the deposit and when it is returned.
A Danish ApS or an EOR
Your own Danish company brings business registration, accounts for the fixed levies, an occupational injury policy and, in many sectors, a collective agreement to follow. For one or two hires the EOR fee is usually the smaller overhead. Our EOR versus own entity guide shows how to compare them.
Freelancers in Denmark
Because Danish employer charges are low, a contractor setup saves less than in most of Europe. The real differences are notice, holiday and pension rights. If a contractor works like an employee, those rights can be claimed back. Pay independent contractors through a contractor management platform, or use a contractor of record.
Choosing an EOR for Denmark
Denmark rewards reading the contract. Remote's standard terms run 12 months and renew automatically, and Deel's promotional order forms need two years. Ask each provider which collective agreement it will follow and whether its pension offer matches what Danish candidates expect. Our published scores rank Multiplier first (79/100) and Oyster second (64/100); see how scores are set.
Use the EOR ranking for the side-by-side, the Remote, Deel and Oyster reviews for contract details, and the cost index for Nordic comparisons.
Frequently asked questions
What does it cost to hire employees in Denmark through an EOR?
Does Denmark have employer social security tax?
What is the minimum wage in Denmark?
What notice does a Danish employer give a salaried employee?
How long is probation in Denmark?
Sources (10)
- Business in Denmark (Danish Business Authority): Resignation and termination (checked Oct 16, 2026 (page updated May 19, 2026))
- Life in Denmark: Resignation and termination (checked Oct 16, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- Deloitte: Denmark Highlights 2026 (secondary, Jan 2026) (checked Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.