True Cost Of Hiring A new Employee In Denmark

If you have a business in Denmark and want to employ permanent or temporary staff, you can use this checklist to find out which obligations you must fulfill. This checklist also includes a number of obligations relevant for employing staff from outside Denmark.

Please Check This List Below

Screen Your Future Employees: When you hire employees, who will hold integrity-sensitive positions, you may need to screen future employees. This is not only possible when hiring regular staff, but also for interim personnel, self-employed professionals, temporary staff and interns.

Register As An Employer With The Dutch Tax & Customs Administration: If you are hiring workers for the first time, you must register as a worker with the Tax and Customs Administration. You will then receive the necessary forms to pay your payroll tax obligations.

Pay At Least The Minimum Wage & Holiday Allowance: Everyone working in Denmark is entitled to the statutory minimum wage and a holiday allowance. This also applies to short-term workers, flex workers, and foreign personnel.

Provide Healthy & Safe Working Conditions: As an employer, you must ensure a healthy and safe workplace for all your workers. The SZW Inspectorate or your sector institute can provide you with information about the rules.

Fixed Social Contribution Rate: Denmark provides the world’s lowest employer costs with employers paying less than one percent (maximum 1,350 Euro) per employee per year in the social event. This is owing to the reality that healthcare and social welfare benefits are financed by the Danish State and that most pension schemes in Denmark are private rather than public.

Work-related Costs Scheme: The work-related price scheme allows employers to supply some benefits tax-free, such as travel allowances, learning costs, lunches, and Christmas hampers. Employers may provide such items tax-free only if their total value is less than 1.6% of salary costs. If their total value exceeds 1.6%, the employer must pay an 80% tax on the excess.

Employee Pension: Many companies provide a pension for their employees. It varies from 3-5% of employees in total salaries. This is an extra cost which managed by the company.

So, from the above-mentioned point, we can say that it's much better and hassle-free to hire an employee virtually. There's no need for an additional cost to hire a virtual employee.

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