Employer of Record Denmark
Denmark is known for its flexible labour market (“flexicurity”), but employers still have important obligations regarding employment, pensions and holiday pay. With Employer of Record, it becomes possible to hire quickly and securely in Denmark without a local legal entity.
How does EOR make it easier when you hire in Denmark?
Denmark has a unique labour-market model:
Flexicurity - Means it is easy to hire and end employment, but correct pay and tax are critical.
CPR and tax card - Required for lawful employment.
Feriepenge system - Holiday pay must be handled correctly and reported properly. When employment ends, any unused accrued holiday is not paid out in the final salary, but is paid into a Ferie account that is then carried over to the next employment.
Employer responsibilities in Denmark
Employers in Denmark must, among other things:
- Pay ATP pension
- Manage feriepenge (holiday pay)
- Pay social contributions
Employers pay ATP contributions as part of the pension system. Employees accrue paid holiday through the feriepenge system. An EOR acts as the legal employer and handles, among other things:
- Local employment contracts
- Salary, taxes and social contributions
- Holiday pay (feriepenge)
- Authority reporting
- HR and compliance
When is EOR best suited in Denmark?
- For rapid expansion into the Danish market
- For a remote team in Denmark
- For temporary market testing
- When recruiting specialists
How the process works
- You choose the candidate
- BTR hires locally in Denmark
- We handle payroll and compliance
- You lead the team
Why choose BTR as your EOR in Denmark?
- We have deep employment-law expertise in Denmark
- We offer a safe and smooth onboarding
- We always provide transparent reporting
- We offer a scalable solution
Want to start hiring in Denmark? Contact us and we’ll help you hire quickly, safely and correctly from day one.
FAQ Employer of Record (EOR) in Denmark
The EOR becomes the legal employer and handles contracts, payroll, taxes and employment-law compliance while the customer manages the work.
Minimum requirements include:
- Employer and employee
- Workplace
- Role and duties
- Start date
- Salary and remuneration
- Holiday rules
- Notice period
Employees normally accrue about 2.08 days of holiday per month (≈ 25 days per year).
Holiday pay can be:
- Paid holiday with salary
- Feriepenge approx. 12–12.5% of salary paid into FerieKonto, for hourly employment or when employment ends.
The EOR handles:
- Holiday accrual
- Feriepenge reporting
- FerieKonto or equivalent system
Yes, Denmark often has more flexible employment rules compared with many EU countries.
- For rapid establishment in the Nordics
- To ensure compliance
- For project-based expansion
- When work permits are needed for foreign labour
Statutory holiday pay that employers pay.
Often more flexible, but it still requires correct handling of pensions and holiday.
Not always, but common in certain industries.
Often within a few weeks depending on the role and whether a work permit is required.