Hi Cheryl, jumping in from our perspective at WorkSphere as an Employer of Record (EOR) — we see a few recurring patterns in Danish remuneration:
Two common employment setups
Permanent employment is the standard setup and typically includes:
A fixed monthly salary (variable pay exists in some roles, but isn’t universal)
Holiday entitlement of 5 weeks / 25 days under Danish rules
Often an employer pension plan (levels vary by company/sector)
Temporary / hourly employment
Often comes with a higher hourly rate, and for highly skilled specialists it can outperform permanent packages financially — especially if combined with the expat tax scheme, depending on the total setup.
Important nuance: hourly/temp workers still generally accrue holiday entitlement — the difference is often how it’s paid (holiday pay/allowance vs paid leave) and which benefits (pension, insurance, notice, etc.) are included.
Taxes & deductions (expat vs ordinary taxation)
Denmark withholds taxes at source, and there is an 8% labour market contribution (AM-bidrag) on salary income and 36 - 42 % taxes.
For eligible hires, the researcher/expat tax scheme is 32.84% (27% + AM-bidrag) for up to 7 years.
The common commuting “transport support” is actually a tax deduction (kørselsfradrag/befordringsfradrag), and it does not pay out as cash.
Under the expat tax scheme, you generally can’t claim deductions in A-income, so commuting deductions typically won’t apply to that scheme income.
All-inclusive packages
We increasingly see “all-inclusive” rates for international hires (meant to cover benefits like pension expectations, transport costs, etc.). These can be convenient, but they need careful comparison to a standard Danish package.
Visa compliance + timelines
For work permits, SIRI requires that salary and employment terms correspond to Danish standards — offers below market can be rejected during review.
Visa processing can take time, but if the employer/EOR is SIRI-certified, the Fast-Track scheme can materially reduce time-to-hire (including “quick job start” options).
In practice, we often see that hiring can be smoother when the process is planned before arrival, especially if a work permit is required.
Labour unions and salary levels
Labour unions in Denmark are strong and influential, and while there is no statutory minimum wage, collective agreements and market standards play a major role in setting salary expectations.
As a result, salaries that fall significantly below the norm are generally not accepted, either by the market or during visa assessments. This also means that the gap between low-salary / low-cost countries and high-salary / high-cost countries like Denmark is substantial, and something internationals should factor into expectations when considering relocation.
This dynamic is closely linked to Denmark’s emphasis on fair competition, equal pay standards, and protection of the local labour market.
Extra note for temporary internationals: §53A pension
If you’re in Denmark temporarily, a §53A-type pension setup can be relevant in some cases: payouts from §53A arrangements are generally tax-free in Denmark, and it can be structured to be more portable when leaving Denmark (subject to provider terms and documentation).
Hope this helps add a practical EOR angle to the thread.
Feel free to reach out for assistance!
/ Simon
