Denmark

[Updated 3/13/24] Employees in Denmark value and involve themselves significantly when it comes to employee benefits. Therefore, when setting up an office in Denmark, multinational companies must set up pension and benefits plans to meet expectations and attract talented people. Taking a serious part in a healthy workforce secures both the employees and the employer’s operation through quick and preventive solutions.

Asinta Partner
Lasse Siggaard

Ensure

More Info

Mandatory employee benefits in Denmark

The only mandatory employee benefits are workers’ compensation and holiday pay. However, the insured benefits outlined below are expected when hiring people in Denmark (and could, in theory, be described as mandatory) and are the norm in the marketplace.

 

Supplementary employee benefits in Denmark

Medical insurance (health insurance)

Employees consider health insurance the most valued benefit, and managed care schemes are the most common. Employees have access to a healthcare provider network provided by the insurance company on top of Danish social benefits. Typically access to a pre-examination, specialist treatment at a private hospital system from private consultants, as well as treatment by a physiotherapist, chiropractor, psychologist, and acute crisis assistant, are offered.

Additionally, this plan could cover osteopaths, nutritionists, etc. It also could cover employees’ children up to age 24.

Disability insurance/income protection

Disability insurance/income protection is a supplement to public benefits. It is set up with a mandatory base level and built into the pension plan. The employee could select more cover, and the additional premium is funded from the pension contribution.

Critical illness

Critical Illness is set up with a mandatory base level and typically ‘built in’ the pension plan. The employee could select more cover, and the additional premium is funded from the pension contribution.

Life insurance

Life insurance is set up with a mandatory base level and typically ‘built in’ the pension plan. The employee could select more cover, and the additional premium is funded from the pension contribution.

Pension plan

Pension plans are a defined contribution scheme funded through an insurance contract, and retirement pay-outs can be via a lump sum, annuities, lifelong, or a mix of the three.

Dental

Dental is not a widespread benefit in Denmark, but more and more clients add this line to their program.

 

Perks in Denmark

Company Cars

Employees with high business mileage are often offered a company car which, in addition to being used for business, may also be used for private purposes. The employee is taxed on the free car when the company provides a vehicle instead of paying operating costs. Purchase and operating costs are borne exclusively by the company.

Fitness memberships      

If the employer pays for the employee’s membership of associations, clubs, lodges, etc., this is generally a payment of private expenses on which the employee must pay tax. The employee must also be taxed if the employer provides other benefits such as free tickets, access to annual passes, or similar as part of the employment relationship.

Flexible Benefits          

Large and mid-sized employers will often provide employees with a range of ‘voluntary benefits’ provided at discounted prices through the employer. However, employees incur taxes on most of them.

Work from Home        

An increasing number of employers have been creating working models that include the possibility of employees working from their homes, particularly in the technology sector.

Canteen

Canteen arrangements are standard with larger employers and particularly in industrial facilities. Food is provided at a discounted rate and can include breakfast and lunch. No tax is payable on the employer’s contribution to the canteen scheme if the employee pays at least DKK 15 for a standard meal without drinks or DKK 20 with drinks.

 

This information about employee benefits in Denmark is provided by Ensure, Asinta’s employee benefits consulting Partner in the country.