Denmark EOR & PEO services


Denmark offers a diverse range of PEO/EOR employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.

PEO/EOR employment contracts in Denmark


It is a legal requirement that employers must provide the employee with an employment contract if their employment lasts for at least a month and the average weekly working time exceeds eight hours per week. If the general terms of the employment are regulated by a collective agreement, the employment contract will typically include a reference to the applicable collective agreement.

In Denmark PEO/EOR employment, several types of employment contracts exist. The most common one is an indefinite contract – a contract without a specified end date.


Another common employment contract is a fixed-term contract. A fixed-term contract can only be renewed more than once if a justified reason exists. There is, however, no legal limit for the maximum number of successive fixed-term contracts if a justified reason is given.

The Danish Confederation of Salaried Employees and Civil Servants states that usually, 2 successive renewals can be based on objective reasons.

PEO/EOR employment termination and notice period in Denmark


There is no “at-will” termination in Denmark. In order to terminate the employment contract of an employee, sufficient reasoning must be provided. The notice period in Denmark is fixed by law. Employees with an indefinite employment contract are entitled to a notice period of 1 to 6 months, depending on the length of the employment and the type of the employment contract. 

Length of employment Notice Period Denmark
<  6 months 1 month
6 months to 3 years 3 months
3 years to 6 years 4 months
6 years to 9 years 5 months
> 9 years 6 months

*If a termination is made ​​after 5 and a half months of employment, the notice period is 3 months, not 1 month. This is because of the fact that with a notice period of 1 month, the employee has been employed for more than 6 months at the time of termination.

Fixed-term contracts can be terminated automatically on their expiry date or upon completion of specified tasks. To learn more about fixed-term contracts in Denmark we invite you to read this blog on Fixed-Term Contracts in Denmark, Germany and France.

In Denmark, there are no general rules or regulations when it comes to severance pay. The only aspect that is set is that salaried employees who have been in continuous employment for 12 to 17 years are entitled to a severance payment of between 1 to 3 months’ salary. Some collective bargaining agreements also include rules on severance pay that depend on seniority.

As the Danish PEO and EOR provider is the formal employer of your employees in Denmark, they are also responsible for terminating the contract while applying the applicable French terms. 

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PEO/EOR employment in Denmark: Salary, employer costs and working hours


In Denmark, salary can be determined in various ways: individually, between the employer and employee and your employer, or partly collectively through agreements with a trade union

The average annual wage in Denmark was $58.430. This is lower than the average annual wage in the United States: $69.392 

As an employer through PEO/EOR services in Denmark, the actual employer costs are around $2,388 higher than the gross annual salary. Based on a $ $58.430 annual salary, the employment costs would be $60.818

See all average salaries in Europe in 2024

In Denmark, the standard working week is 37 hours. By law, the maximum average working hours cannot exceed 48 hours per week. A lunch break of 30 minutes is normal. In the public sector, lunch breaks are usually paid, which is not always the case in the private sector. Employees are entitled to at least one day off per week.

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Paid vacation leave and public holidays in Denmark EOR/PEO employment


Denmark has a “concurrent holiday” system, meaning that employees earn the holidays each month. Employees earn 2.08 days of paid holiday every month, for a total of 25 days per year. Employees begin to accumulate their holidays on September 1, and run through August 31 of the following year. In general, employees accrue 12.5% of your salary in holiday allowance.

Denmark has 11 official public holidays:
  • New Year's Day - 1 January 
  • Maundy Thursday – 28 March
  • Good Friday –29 March
  • Easter Monday – 1 April
  • Ascension Day – 9 May
  • Bank closing Day - 10 May
  • Whit Monday – 20 May
  • Constitutional Day - 5 June
  • Christmas Eve - 24 December
  • Christmas Day – 25 December
  • 2nd Christmas Day – 26 December

Add 2024 Denmark public holidays to your calendar

EOR/PEO denmark

Maternity and paternity leave through EOR/PEO in Denmark


In Denmark, expecting mothers are entitled to a total of 18 weeks of leave – 4 weeks before birth and 14 weeks after. Employees receive 50% of their wages for this time. Employees who are covered by the agreement may be entitled to full pay. New fathers in Denmark are entitled to 2 weeks’ leave, which must be taken during the first 14 weeks following birth.  


Find out everything you need to know about maternity leave in other European countries

Social Security tax for Denmark EOR/PEO employers

Danish employers must, just like other employers in European countries, pay social contributions to their employees.
However, compared to most other European countries, the social security contributions are low in Denmark.

On average, as a PEO/EOR employer in Denmark, you pay around $ 199 per month and $ 2.388 per year. In the table, you can find an overview of the taxes you, as an employer in Denmark, have to pay on an annual basis.

To learn more about the social security tax in Europe, we invite you to read this article on Social Security Tax Rates for Employers Across Europe.

denmark tax table-1

* kr - Danish Krone 

*Industrial injury insurance is calculated based on the type of industry, number of employees, and the used insurance company.


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Europe is home to a diverse range of countries, each with its unique employment characteristics. These reflect the diverse economic and cultural landscapes across the continent.

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Get in touch with our team of experts to identify the best PEO and EOR solutions for your needs in Denmark today.

Our HR Outsourcing services provide you with the right helping hand to enable you to grow.

Monique Ramondt-Sanders

Monique Ramondt-Sanders

CCO & VP of HR Outsourcing