Cost to Hire an Employee in Denmark (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 2.4% at a DKK 600,000 salary: DKK 14,202 a year, of which the largest is holiday supplement (ferietillæg).
• An EOR fee, if you hire without your own entity. The providers in our Denmark guide publish starting prices of US$199–599 per employee per month.

Mandatory employer costs at a DKK 600,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Employer contributions: Fixed amounts: about DKK 8,200 a year per full-time employee
• Holiday supplement: 1% of salary for monthly-paid staff
• Minimum wage: None by law; set by collective agreements
• Paid holiday: 2.08 days a month (25 days a year)
• Employer notice: 1 to 6 months (salaried employees)

• The fixed contributions are per full-time employee and don't rise with salary, so as a share of pay they fall as salaries rise.
• Occupational pension contributions agreed in a collective agreement or employment contract aren't included here.
• AES varies by industry group, from DKK 284 to over DKK 10,000 a year per full-time employee in 2026.
• The employee's ATP share and income tax are deducted from pay and are not employer costs.

Without your own entity in Denmark, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Danish ApS or branch. See the comparison in our Denmark guide and EOR vs local entity.