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Posted on April 22 2022

What are the benefits of working in Denmark?

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By  Editor
Updated January 24 2024

If you are planning on working in Denmark after having landed a job there, know what the country has on offer for immigrants. Denmark offers flexibility to its employees.

Work hours and vacation

This Nordic country ranks first among nations that provides to its employees’ excellent work-life balance. It is indicated in the fact that employees need to work for only 37 hours a week and people who put in more hours are not allowed to work for more than 48 hours per week.

All employees who have worked for more than one year are entitled to five weeks of paid holiday. This is in addition to the 12 national holidays of this Scandinavian country ever year.

Minimum wages

Although there is no fixed minimum salary in Denmark, a minimum income of 110 Danish Krone (DKK) per hour has been established via labor market arrangements that are agreed upon between business houses and unions representing workers.

Taxes

With Denmark being a welfare state, it comes as no surprise that its taxes are high. Most of this  tax amount is used to pay for certain crucial services

The slabs for tax rates in Denmark are 8% for salaries up to 50,543 DKK, 40.20% for those earning between 50,543 and 577,174 DKK, and 56.50% for those taking home earnings of up to 577,174 DKK and more.

Social security benefits

If you work in Denmark and contribute to social security, you are eligible for social security benefits, including family leaves (paternal and maternal), child benefits, and childcare, healthcare benefits like free healthcare, sickness benefit and homecare services, including for the close relatives who are differently abled or ailing, and benefits to cover for illnesses, injuries, disabilities, and old-age pensions.

In addition, those who have been without a job for a minimum of one year are eligible for unemployment benefits.

To access the social security benefits of Denmark, you must be holder of a social security number, CPR number, for which all migrant employees should apply as soon they begin work in Denmark.

Pension plans

All Danish employees need to participate in the government’s pension plan. Certain workplaces also offer private plans for which employees contribute around 5% of their basic income while the company contributes 10% of their earnings.

Also included in the pension plan are long-term disability insurance and  extra life insurance.

Parental leaves

Both parents in Denmark are eligible for 52 weeks of parental leave.

  • Maternity and paternity leave
  • A four-week pregnancy leave is granted to the mother before the childbirth.
  • A mother is granted a maternity leave for 14 weeks after the delivery.
  • A father is eligible for two weeks of leave following childbirth.
  • In addition, both parents are granted 32 weeks of combined parental leave which the parents can divide among themselves.

Maternity benefits

Maternity benefits are covered for the income not earned when a mother is on maternity leave.  Eligibility for maternity benefits is decided by the employment status of the mother, including whether she is a paid employee, or is an unemployed person, a self-employed person, or a student or newly employed person.

Work-life balance

The business culture of the country emphasizes on work-life balance.

Each employee is eligible for a vacation of five weeks per year.

If you are currently a UAE resident and plan to work in Denmark, contact Y-Axis, the World's No. 1 Immigration Consultant.

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