Global Expansion Resources | Denmark
Denmark Payroll Services
Ensure compliant and straightforward expansion into Denmark.
Expanding your business into Denmark gives you access to a skilled workforce, stable markets and a strategic gateway to Northern Europe. But their payroll regulations, tax structure and local employment laws may not be what you’re familiar with, and navigating these all compliantly can quickly become a job in itself. Leap29’s Denmark payroll services take the stress out of global expansion, helping you stay compliant, avoid delays and focus on growing your operations.
With more than 25 years’ experience supporting global expansions in over 180 countries, our team of payroll and compliance specialists acts as your Denmark PEO (Professional Employer Organisation). We handle every aspect of employment, payroll and HR compliance so you can concentrate on the core operations of your business.
Want to expand into Denmark?
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.
"*" indicates required fields
What’s included:
HR software
Bespoke employee management software included in our PEO service.
Global compliance
We have expert teams across the world to ensure global compliance.
Transparent pricing
Avoid hidden costs and account for our fee with our transparent pricing.
Denmark Expansion Advice
Denmark Payroll: Digitally Advanced
Denmark is renowned for its transparent and digitally advanced payroll system, yet this sophistication comes with complexity for companies new to the country. Almost every step of the process runs through government-operated platforms like e-Income and e-Boks, which integrate salary reporting, tax filing and employee documentation. For businesses unfamiliar with Denmark’s system, this creates a steep learning curve.
Monthly payroll is the standard across sectors in Denmark, with salaries typically paid on the last working day of the month. All wages must be paid in Danish kroner, usually via bank transfer – cash payments are uncommon and may raise compliance concerns. Employers must also issue payslips that clearly show gross salary, withheld taxes, labour market contributions, church tax where applicable, social contributions, benefits and any deductions or bonuses. Payslips are usually delivered digitally through e-Boks, though physical payslips are still used in some sectors.
Income Tax, Church Tax and Regional Variations
Payroll compliance in Denmark requires careful navigation of multiple tax layers. Employees are subject to national income tax, municipal tax and the flat-rate labour market contribution of 8% of any personal income. For high earners, the combined effective tax rate can reach over 50%. Employers are responsible for withholding and remitting all these amounts accurately through the e-Income system and any errors can lead to audits, fines or year-end corrections.
Church tax adds a further layer of complexity. Employees registered with the Church of Denmark, or other recognised religious bodies, pay a small percentage of their taxable income. Employers must correctly factor this into payroll and reflect it on employee payslips. Municipal tax rates also vary by location, meaning each employee’s home municipality must be correctly assigned in payroll systems to avoid errors in withholding and reporting.
Social Contributions and Mandatory Benefits in Denmark
Unlike many countries, Denmark does not fund social security through traditional contributions. Instead, employers are responsible for specific obligations including ATP, the mandatory pension scheme, as well as industry-specific contributions such as AES (Labour Market insurance), AUB (an employers’ reimbursement system) and FIB (Financing Contribution). Compliance is essential – all payments must be reported accurately through government portals like NemRefusion. While these contributions are modest compared to other markets, it’s vital that they be included correctly in payroll calculations.
How Leap29 Supports Your Danish Expansion
Our Denmark payroll services handle the full spectrum of employment obligations. We calculate salaries and bonuses, process deductions for taxes, social contributions and church tax, issue detailed payslips and submit payroll reports through e-Income. We also manage employment contracts, leave, terminations and benefits, ensuring compliance with Danish law at every step.
By managing multi-currency payroll and integrating with your HR or finance systems, we reduce risk, prevent disputes and free internal teams to focus on strategic growth. Leap29 allows you to expand into Denmark without establishing a local entity, acting as your Professional Employer Organisation.
Why Choose Leap29 for Danish Payroll Solutions
Leap29 offers Denmark payroll services with 99.99% accuracy, full regulatory compliance and transparent pricing. Our experience spans sectors from aerospace, construction and technology to healthcare, manufacturing and renewable energy. By combining deep expertise with digital payroll proficiency, we simplify even the most complex expansions.
Don’t take our word for it!
“
Denmark Payroll FAQs
What makes payroll in Denmark different from other countries?
Denmark’s payroll system is highly digital, integrating salary, tax and employee records through platforms like e-Income and e-Boks. It also features multiple tax layers, region-specific municipal rates, church tax obligations and industry-specific contributions, making compliance more complex than in many other European countries.
Do I need a legal entity to run payroll in Denmark?
Yes, if you don’t use a PEO. Leap29 can act as your Denmark PEO, removing the need to set up a local company while handling payroll, taxes, benefits and compliance.
How does Leap29 manage payroll complexity?
We handle all salary calculations, deductions, reporting and employee documentation. We ensure tax, municipal, church and social contributions are correctly applied and we integrate leave, sick pay and parental leave entitlements into payroll.
How Leap29 Supports Your Danish Expansion
Our Denmark payroll services handle the full spectrum of employment obligations. We calculate salaries and bonuses, process deductions for taxes, social contributions and church tax, issue detailed payslips and submit payroll reports through e-Income. We also manage employment contracts, leave, terminations and benefits, ensuring compliance with Danish law at every step.
By managing multi-currency payroll and integrating with your HR or finance systems, we reduce risk, prevent disputes and free internal teams to focus on strategic growth. Leap29 allows you to expand into Denmark without establishing a local entity, acting as your Professional Employer Organisation.
How much do Leap29’s Denmark payroll services cost?
Leap29’s Danish payroll services start at $15 per employee per month, covering accurate payroll, optional system integrations and local and regional support. Additional HR, tax or compliance services are available to meet your business needs.
Talk to an expert today
Whatever stage you’re at in your global expansion journey, we can help.
Contact us today to see how Leap29 can be the trusted PEO partner that supports your global expansion.
"*" indicates required fields
Denmark
Expansion Resources
Denmark’s 2025 Student Visa Shake-Up: What You Need to Know
Denmark PEO Services
Denmark Employment Contracts
Denmark Work Permits & Visas
Denmark EOR Services
Denmark Entity Set Up
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
We make expansion in Denmark simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.