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Posted on October 22 2021

Work overseas: The benefits you will get if you work in Denmark

By  Editor
Updated June 07 2023

Denmark is a prominent and progressive country in Europe. It’s a member state of the EU and is quite ideal a place to work overseas. Here, we will look into the benefits of working in Denmark.

Working hours and paid time off

Denmark tops the ranks when it comes to providing work-life balance to employees. Denmark has only 37 hours of work assigned for employees per week. In case overtime is involved, the total work hours aren’t allowed to go beyond 48 hours per week.

Besides that, employees are entitled to a paid holiday of 5 weeks. This is applicable if they have worked for one calendar year prior to the beginning of the holiday year. 3 weeks of this holiday period allowed must be spent from May to September.

Besides this, employees get about 12 Danish national holidays every year.

Minimum wage

Denmark has no fixed national minimum wage in Denmark. It gets fixed through labor market agreements. These are set as a result of negotiations between business associations and the unions.

The average wage as of now is approximately DKK 10 which is $18 per hour in international currency. The annual minimum wage in Denmark currently is $44,252.00 in International Currency.


Denmark is a welfare state. This is the reason that the country has high tax rates. The taxes collected by the country are to fund certain universal critical services. Here are the tax rates in Denmark:

Tax rate Income ceiling
8% Up to DKK 50,543
40.20% DKK 50,543 to 577,174
56.50% DKK 577,174 and above

Social security benefits

If you pay towards social security in Denmark, you are entitled to social security benefits. They include:

  • Family benefits including maternity and child benefits, as well as childcare
  • Health benefits like free sickness benefit, public healthcare, and leave home care services that include caring for your ill or disabled close relatives
  • Incapacity benefits that include benefits for cases like invalidity, injury, sickness, and old-age pension

You will also be entitled to unemployment benefit in case you have made payments towards unemployment insurance for a minimum of 1 year.

To get the use of the social security benefits, you need to obtain a social security number or CPR number. As soon as you reach Denmark, you must apply for this.

Pension plan

All workers in Denmark must participate in the pension plan of the Danish government.  Most workplaces provide you with private plans. In such plans, you contribute around 5% of your basic salary. I the same plans, the employing company contributes an extra 10% of your earnings.

The pension plan generally has long-term disability insurance and extra life insurance included in it.

Parental leave

Parents in Denmark can take parental leave of 52 weeks.

Maternity and paternity leave

Before childbirth, a mother will get a 4-week pregnancy leave. Her maternity leave after childbirth is for a period of 14 weeks.

A father gets paternity leave for 2 weeks once his child is born. This is as per the agreement with the employer before the child gets to the age of 14 weeks.

Parents could divide parental leave of 32 weeks amongst them.

Maternity benefits

Maternity benefits could mean compensation for the lost income during your maternity leave. Your employment status determines your eligibility for maternity benefits. This includes the factor whether you are on maternity leave as a paid employee, an unemployed person, a self-employed person, or a student or freshly qualified person.

Workplace culture

Transition is easier if you understand the culture of the Danes. In Danish culture, there’s teamwork, flat hierarchy, informal work atmosphere, and flexible working hours.

Work-life balance

Work-life balance is an important facet of Danish business culture. That puts Denmark among the countries that are the most family-friendly in the world.

Employees are entitled to 5 weeks of vacation every year. So, employees will get ample time to spend with family as well as travel to meet relatives abroad.

Get world-class immigration services and overseas job search services from Y-Axis, the World’s No.1 immigration & visa company. Click here to connect with us.

Here are some recommended articles for you:

  1. Work overseas: The benefits you will get if you work in Germany
  2. Work overseas: The benefits you will get if you work in UK


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