Denmark flag Denmark: Operating a Business in Denmark

Work conditions in Denmark

The Active Population in Figures

201820192020
Labour Force 2,982,4723,023,9043,022,416

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 77.89%78.20%79.01%
Men activity rate 80.61%81.00%81.93%
Women activity rate 75.13%75.35%76.04%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2015
Human health and social work activities 17.4%
Wholesale and retail trade; repair of motor vehicles and motorcycles 14.4%
Manufacturing 12.0%
Education 9.5%
Construction 6.0%
Professional, scientific and technical activities 5.4%
Public administration and defence; compulsory social security 5.3%
Transportation and storage 4.6%
Accommodation and food service activities 4.3%
Information and communication 4.1%
Administrative and support service activities 3.8%
Financial and insurance activities 2.7%
Arts, entertainment and recreation 2.5%
Agriculture, forestry and fishing 2.5%
Real estate activities 1.2%
Water supply; sewerage, waste management and remediation activities 0.6%
Electricity, gas, steam and air conditioning supply 0.5%
Mining and quarrying 0.2%
 

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Working Conditions

Legal Weekly Duration
37 hours
Retirement Age
65
Working Contracts
Permanent contract, fixed-term contract, training contracts.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
According to the government data, the average monthly income is DKK 44,513 in 2020 (Statistics Denmark).
Average Wage
According to the government data, the average yearly income is DKK 326,048 in 2019.
Social Contributions
Social Security Contributions Paid By Employers: Supplementary Pension Scheme (ATP) : DKK 2,271.60 annually
Maternity fund : DKK 1,350 annually
Industrial injury insurance : around DKK 5,000 annually (depends on type of work, number of employees, insurance company etc.)
Other social contributions : around DKK 5,000 annually
Social Security Contributions Paid By Employees: Supplementary Pension Scheme (ATP) : DKK 1,135.80 annually.

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Social Partners

Social Dialogue and Involvement of Social Partners
The labour market is quite regulated by collective agreements. Many employers are members of the Danish Employers’ Confederation (Dansk Arbejdsgiverforening/DA) or one of the special employers’ associations (e.g. the Financial Sector or Agriculture). Employees are often members of the relevant trade union (Metal Workers, Commerce and Office, etc.), although most of these unions are also members of the 'umbrella' employee's confederation, the Danish Federation of Trade Unions (Landsorganisationen/LO). The LO is a service organisation that negotiates and co-ordinate various matters common to all trade unions.
Unions

Unionisation Rate
According to OECD data, as of 2013, Denmark's trade union density is 67%.
Labour Regulation Bodies
Danish Employers' Confederation (DA)
National Labor Market Authority

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Latest Update: June 2022

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