Hire in Denmark

Overview of Denmark

Population: 5,939,695 people

GDP: $409.47 billion

Economic Overview

Denmark is currently the 36th largest economy with an economic freedom score of 77.8, ranking it 10th among the freest economies in the Index. Its overall score has fallen by 0.5 points, owing to a decrease in labor freedom. Denmark is ranked 5th among 45 countries in the European region, and its overall score is above the regional and world averages.

Denmark's real GDP is expected to grow at a robust 2.8 percent and approximately 2.9 percent as local and global demand stabilized.

According to the European Commission, private consumption grew by 4.7 percent and roughly 3 percent. However, there is still a lot of uncertainty because firms may postpone or cancel investment decisions.

Denmark's economy would be ranked as free if it weren't for its history of low scores for tax burden and government spending. For the 20th year in a row, it has remained in the free category.

Market Size

Denmark's labor market is large enough to handle the entire country's working-age population. The Danish economy grew by 2.8 percent and 2.9 percent, respectively. Containment restrictions were reinstated after a significant wave of infections before the turn of the year, hampering economic development. The economy gradually reopened, allowing demand and GDP to accelerate.

A Brief Glimpse of Industries in Denmark

• Denmark's government has worked hard to expand its trading routes worldwide, particularly in the United Kingdom, China, and Ireland. As a result, the Danish market has received a large amount of attention.
• The Danish government appears to be eager and capable of fostering entrepreneurship and business. It has long supported initiatives with significant infrastructure, including financing from the Danish government, mentoring, and low-cost legal aid to start and operate businesses.
• The main industries where Denmark has started to invest more are wind turbines, pharmaceuticals, medical equipment, shipbuilding and refurbishment, iron, steel, nonferrous metals, chemicals, etc.
• The government intends to create 120,000 jobs for the people who are now looking for work by 2030 in private companies.
• Denmark's average Internet speed is 49.19 Mbps. In Denmark, the average download speed is 93.49 Mbps, while the upload speed is 21.77 Mbps.
• The administration also wants to strengthen the country's industrial sector, accounting for 19.1% of GDP.
• The government is also pressuring the trade and manufacturing businesses to adopt flexible work agreements.

Cost of Living

The cost of living is the amount of money required to cover basic needs such as housing, food, taxes, and healthcare. Here are the essential products and services that an ordinary person requires to live a normal existence. The Bureau of Economic Analysis (BEA) breaks up necessary expenses into nine groups, i.e., education, apparel, food, housing, transportation, medical, recreation, and other goods and services.

A person's cost of living is determined by many factors, including where they live, the dominant industry in the area, state revenue, taxation policies, etc. The essential aspect in influencing the cost of living is location.

A Breakdown of the Average Cost of Living in Denmark

Cost of Renting

In Denmark, the average monthly rent for a single person ranges from $481 to $1347. On the other hand, depending on where you live and how you live, your expenses may vary. Living alone is more expensive than sharing a living place.

Your Cost of Living in Denmark Depends on Your Location

The cost of living varies significantly in different cities in Denmark.

Top Industries that are Expected to Hire in Denmark in 2025

Denmark's Top Skills

The labor market in Denmark is booming. For innovative and dedicated individuals, there are several entry-level work prospects. Senior-level positions are best suited for experienced and industry specialists. Depending on their primary occupation, different cities have different types of abilities.

The following are the major industries in Denmark that are hiring the most people:

• wind turbines
• pharmaceutical
• medical equipment
• food processing
• electronics
• furniture and other wood products
• iron, steel, nonferrous metals
• textiles and clothing
• construction
• chemicals
• machinery and transportation equipment
• shipbuilding and refurbishment
  

Top Skills City-wise and Occupation-wise

Due to differences in geography and temperature, certain types of industry employment are more common in certain parts of Denmark.

Copenhagen, Denmark's capital, is located on the islands of Zealand and Amager off the coast of Denmark. It is the focal point of one of Northern Europe's most vibrant regions, thanks to its strategic location and highly developed society. Many foreign enterprises have recognized the opportunity that Copenhagen and the surrounding region can provide, especially in the industries listed in the table.

Aarhus is Denmark's second-largest city and the administrative center of Aarhus municipality. It is situated in the Kattegat Sea on the eastern coast of Jutland. It is one of Denmark's oldest cities, dating back to at least the late eighth century. It began as a small harbor village at the mouth of the Aarhus River and swiftly grew into a major trading center. Aalborg is a city in the process of transforming from a working-class industrial area to a knowledge-based community.

Odense is Denmark's third-largest city, with the advantage of being centrally positioned in the country, making it an excellent meeting location. Odense has the lowest level of taxation and fees among Denmark's main cities to attract business and enterprises, and we offer, among other things, excellent networking and exposure opportunities, as well as clear, efficient handling of paperwork.

Hiring Costs

When it comes to hiring employees, the cost of hiring is something to consider. It gets determined by multiple factors, including the cost of living in the city and the total amount of money spent there. A lot of factors influence the cost of recruiting someone in a specific city, including -

• Onboarding expenses
• Orientation and training costs
• The cost of conducting interviews, doing background checks, and executing the employment process
  

Salary Structure for Various Roles by Average Salary Survey

Employment Laws in Denmark

The principal sources of law and regulation in the Danish labor market are:

• legislation
• collective agreements
  

Some statutes like the Danish Salaried Employees Act create a legal framework for specific employee groups, which protects and guarantees minimal rights to salaried employees, such as notice periods and compensation for arbitrary dismissal. Other regulations, such as the Danish Holiday Act, control specific issues that affect all employees.

Furthermore, the Danish Salaried Employees Act governs restrictive covenants, and a restrictive contract must meet criteria to be valid under the Act. It includes a demand that the employee in question gets compensated.

How Can Skuad Help You in Hiring in Denmark?

Hiring in Denmark is a multi-faceted operation that requires a thorough understanding of the regulations, trends, hiring costs, city-wise living costs, and more. Skuad joins the team as a one-stop shop for all of your recruitment needs. It allows you to focus on your project and expansion goals without having to worry about hiring. To learn more, contact Skuad Experts.

FAQs

How to hire employees in Denmark?

Companies can hire employees in Denmark by either setting up a local entity (e.g., an ApS — private limited company) or by working with an Employer of Record (EOR). Setting up a Danish entity involves registering with the Danish Business Authority (Erhvervsstyrelsen), enrolling in the Central Business Register (CVR), and handling payroll, taxes, and social security contributions locally. Alternatively, an EOR can legally employ workers on behalf of the foreign company, handling employment contracts, payroll, tax withholdings, and compliance with Danish labor laws, all without requiring the foreign company to open a Danish office.

What is the minimum wage in Denmark?

Denmark does not have a statutory national minimum wage. Instead, minimum wages are typically set through collective bargaining agreements (CBAs) between unions and employer associations. These vary by industry but generally range between DKK 110–130 per hour (approximately $16–$19 USD/hour) depending on the sector and role. Most full-time workers earn well above these minimums due to strong union representation.

Can a US company hire employees in Denmark?

Yes, a US company can hire employees in Denmark in two main ways:

• Setting up a local subsidiary, such as an ApS, and employing staff under Danish law.
• Using an Employer of Record (EOR) to compliantly hire and pay employees without establishing a legal entity. The EOR handles employment contracts, tax reporting, benefits, and payroll on the US company’s behalf.

What are the employment laws in Denmark?

Danish labor law is shaped by a mix of legislation and collective bargaining agreements (CBAs). Key employment regulations include a 37-hour standard workweek, with additional hours considered overtime (handled per CBA), 5 weeks of paid annual leave, plus 11+ public holidays, no statutory minimum wage — wage terms are set by CBAs or contract, sick leave: first 30 days paid by the employer, then by local municipalities, parental leave: up to 52 weeks, with benefits shared between parents and partially paid by the government, employment contracts are mandatory for engagements over 1 month or 8 hours/week and notice periods: range from 1 to 6 months, depending on tenure and contract terms.

How to get a work visa in Denmark?

To work in Denmark as a non-EU/EEA national, a foreign worker must obtain a residence and work permit before entering the country. The process requires a valid job offer from a Danish employer, an application through the Danish Agency for International Recruitment and Integration (SIRI).

   Common permit types:

• Fast-track Scheme (for certified companies)
• Pay Limit Scheme (for high-salary roles above DKK 480,000/year)
• Positive List (for roles in demand)

One can apply with the required documents like a valid passport, an employment contract, educational qualifications, proof of salary and working conditions. The processing time is typically 1–3 months. Permits are usually tied to the sponsoring employer and are renewable.

How can a US company pay its employees in Denmark?

A US company can pay Danish employees through:

• A local Danish payroll if the company has a registered entity, meeting all requirements for tax, social contributions, and reporting.
• Global payroll platforms that handle multi-currency payments and local tax compliance.
• An EOR, which simplifies cross-border employment by acting as the legal employer in Denmark, running payroll in DKK, deducting appropriate taxes, and issuing pay slips.

Employers must contribute to Danish social security, ATP pension, holiday fund, and labor market insurance. All wages must be paid in Danish kroner (DKK) via local bank transfers.