---
title: "Employer of Record in Denmark – Hire without a local entity"
description: "Expand your team in Denmark without a local entity. Fronted handles Danish employment law, payroll, and compliance so you can hire with confidence."
canonical: "https://fronted.com/countries/denmark"
updated: "2026-10-07"
---

# Employer of Record in Denmark – Hire without a local entity

_Expand your team in Denmark without a local entity. Fronted handles Danish employment law, payroll, and compliance so you can hire with confidence._

Denmark is the only labor market in the world built on a model called "flexicurity" - a deliberate combination of easy termination and generous unemployment support. This is not a marketing phrase. It is the core design principle of Danish employment law. It makes Denmark simultaneously one of the easier Nordic markets for termination and one of the most employee-protective in terms of income security. Understanding this distinction is the key to hiring in Denmark correctly.

## Frequently Asked Questions About Hiring In Denmark

### How quickly can we onboard a Danish employee?

3–5 business days for Danish and EU/EEA citizens once we have CPR number.

### What does an employer actually pay on top of salary in Denmark?

Denmark is unusual - direct employer payroll taxes are very low compared to the other Nordics. The mandatory employer costs are ATP pension (employer share around DKK 2,272/year for full-time), AES, AUB, barsel.dk parental fund and a few smaller schemes, totalling roughly DKK 12,000–15,000/year per employee. Holiday pay (12.5%) and pension contributions (typically 8–12% via collective agreement or contract) are the bigger numbers to budget for.

### How does the Danish holiday system (Feriekonto) work?

Denmark uses a concurrent holiday system since 2020. Employees accrue 2.08 days/month (25 days/year), and 12.5% holiday pay either accrues with the current employer or is paid into Feriekonto (the central holiday fund). We handle the calculations and payments either way.

### How does termination work in Denmark?

For salaried employees (funktionærer) covered by Funktionærloven, employer notice scales from 1 month (under 6 months of service) up to 6 months (over 9 years). Denmark is one of the more flexible Nordic markets - there's no general "just cause" requirement like Finland or Sweden, though unfair dismissal claims are stronger after 1 year of service but are possible before then. We make sure documentation, notice and final settlement (including outstanding holiday pay) are clean.

### What happens when we outgrow EOR and want to set up our own local entity in Denmark?

When you’re ready to establish your own presence in Denmark, we handle the full transition - entity setup, employee transfers, and ongoing payroll and accounting support. And if you’re building across multiple markets, everything stays under one roof: one vendor, one platform, multiple entities. You never have to start from scratch or manage a patchwork of local providers.

### Is supplementary health insurance expected?

Not mandatory - Denmark has universal healthcare via the public system — but private health insurance (sundhedsforsikring) is offered by most employers