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What are the benefits of working in Denmark?
Posted on September 3, 2020
If you have planned an overseas career in Denmark and have landed a job there and plan to move there, you will be happy to know that there are a lot of benefits of working in Denmark.
Denmark is known for the ‘flexicurity’ (flexibility and security) it offers to employees. The concept is based on a welfare state which combines a flexible labor market with social security for all employees.
Working hours and paid time off
According to a 2019 OECD report Denmark ranks first in terms of providing work-life balance to its employees. This is reflected in the working hours which is only 37 hours per week and where overtime is not allowed to exceed 48 hours per week.
Employees are entitled to five weeks of paid holiday if you have worked for one calendar year before the beginning of the holiday year.
Three weeks of this holiday must be used between May and September. This is on top of the about 12 Danish national holidays that occur each year.
Minimum wage
There is no fixed minimum wage in Denmark. The minimum salary is fixed through labor market agreements that are negotiated between unions and business associations.
The minimum salary in the country are around 110 DKK per hour.
Taxes
Since Denmark is a welfare state, the taxes are high. The taxes are used towards payment for certain universal critical services are universal regardless of the income. Here is a table of the tax rates:
8.00% up to 50,543 DKK
40.20% up to 50,543- 577,174 DKK
56.50% up to 577,174 DKK and above
Social security benefits
If you are working in Denmark and make payment towards social security, you are entitled to social security benefits which include:
- Family benefits that include maternity and child benefits, and childcare
- Health benefits such as free public healthcare, sickness benefit and leave home care services including care of close relatives who are disabled or ill
- Incapacity benefits which include benefits in case of sickness, injury, invalidity, and old age pension.
Apart from this you will be entitled to unemployment benefit if you have paid unemployment insurance for at least a year.
To avail of the social security benefits, you must have a social security number or CPR number which you must apply for as soon as you reach Denmark.
Pension plan
Everyone working in Denmark is required to participate to the Danish government pension plan, and most workplaces provide private plans in which you contribute roughly 5% of your basic salary and the company contributes an additional 10% of your earnings.
Extra life insurance and long-term disability insurance are generally included in the pension plan.
Parental leave
Parents in Denmark can avail 52 weeks of parental leave.
Maternity and paternity leave
- A four-week pregnancy leave for the mother before the planned childbirth.
- The mother’s maternity leave for a period of 14 weeks following the birth of the kid.
- Paternity leave for the father for two weeks following the birth of the child, according to the employer’s agreement before the child reaches the age of fourteen weeks
- Up to 32 weeks of parental leave which the parents will be able to divide.
Maternity and paternity leave and benefits are divided as follows:
| Length of leave | Who can avail? |
| 4 weeks before the birth | Mother |
| 14 weeks after the birth | Mother |
| 2 weeks after the birth | Father |
| 32 shared weeks | For both mothers and fathers |
Maternity benefits
Maternity benefits are benefits that you may be eligible for as compensation for the income you would be missing while on maternity leave. Your eligibility for maternity benefits is determined by your employment status, which includes whether you are a paid employee on maternity leave, an unemployed person on maternity leave, a self-employed person on maternity leave, or a student or newly qualified person on maternity leave.
Workplace culture
Understanding Danish culture will make transition easier. Their culture is characterized by flat hierarchy, teamwork, flexible working hours, and informal work atmosphere.
Work-life balance
Danish business culture emphasizes work-life balance, making Denmark one of the most family-friendly countries in the world.
Every employee is entitled to five weeks of vacation per year, making it simple to schedule time with family and travel to see relatives abroad.
The majority of both men and women work, which drives employee demand for flexible work hours.
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