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Employment contracts

We support permanent, part-time, temporary, and contractor agreements, outlining role, pay, benefits, leave, working hours, and termination terms depending on the role and agreement.

Background checks

With candidate consent, we arrange checks covering criminal records, employment history, education, and credit reports where applicable.

Equipment provisioning

We make employee onboarding effortless by managing all equipment provisioning. We also have ties with multiple co-working spaces to boost employee productivity where possible.

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Salary structuring

We set up salaries to include base pay, allowances, contributions for eligible employees (citizens and employees from GCC countries), and statutory entitlements such as gratuity and holiday pay. Overtime is paid at the employee’s normal salary, plus a premium depending on the time/day the overtime is carried out, except for certain categories of employees, such as supervisors.

Taxes

There is no personal income tax in the UAE. Employers contribute 17.5% to social security for eligible UAE nationals; employees contribute 5%.

Payouts

Employees are paid in AED, with payroll cycles aligned to UAE Wage Protection System requirements. Payslips, bank transfer letters, and gratuity calculations are included.

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ATP Pension

Employers contribute two-thirds and employees one-third to the Danish Labor Market Supplementary Pension Fund (ATP), paid alongside regular wages.

Health Insurance

Eligible employees can access Denmark’s national health insurance scheme, which covers most medical services. In some industries, it is common for the employer to pay for medical insurance for the employees and their families.

Work Injury Insurance

Occupational accident insurance is mandatory to cover medical expenses, rehabilitation, and wage loss due to work-related injuries.

Unemployment Insurance

Employees may choose to join an unemployment insurance fund (A-kasse) for income support if they lose their job. It is optional and common in Denmark.

statutory benefits

Employment laws

We meet Denmark’s core labor requirements, including the Danish Salaried Employees Act for contracts, notice periods, and severance; the Holiday Act for 5 weeks of paid leave; the Working Environment Act for workplace safety; equal pay and anti-discrimination laws; and rules on restrictive covenants in employment contracts.

Worker classification

We can help correctly classify employees, contractors, and temporary staff to align with Danish laws and sector agreements, reducing the risk of penalties.

Audit-ready documentation

Employment contracts, payroll records, and benefit contributions are maintained in line with SKAT and labor authority requirements, so you’re prepared for inspections or audits.

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Annual leaves

Holiday calculations in Denmark are one of the most complicated in Europe. Employees need to accrue holidays before they have the legal entitlement to take them. However, some employers are a little more flexible since the change in Laws in 2019. Each full-time employee (working 5 days per week) accrues 2.08 days holiday per month, which equates to around 25 working days holiday each year.

Sick leave

Employees can take up to 30 days of paid sick leave, with additional provisions based on collective agreements.

Parental leaves

Up to 50 weeks, including maternity, paternity, and shared parental leave. Mothers can take 4 weeks before birth and 14 weeks after; fathers get 2 weeks after birth. The remaining 32 weeks can be shared if eligible.

leave policies

Notice periods

The Danish Salaried Employees Act sets notice periods ranging from one month for employees with less than five months’ service to six months for those with more than eight years of service. These timelines apply unless otherwise agreed in the employment contract or collective agreement.

Severance pay

Depending on tenure, employees may be entitled to one or three months’ salary as severance, typically paid with the final salary. The requirement for severance is determined by the Danish Salaried Employees Act or sector-specific agreements.

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Trusted by businesses worldwide

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Jon Santavy

Managing Partner, Simwell

Payoneer Workforce Management has been a game-changer for us, completely transforming the way we manage our global team. Payoneer Workforce Management’s digital onboarding has made our international payments as easy as our domestic ones. Payroll management that used to take hours is now error-free and takes just a few minutes.

Lavinia Davison

Lavinia Davison

Global Head of Talent & Operations, OpenSolar

Payoneer Workforce Management, has been a key partner in our international expansion. Their seamless onboarding process and compliance expertise have allowed us to focus on our core mission which is to accelerate the world’s transition from fossil fuels to solar energy.

Brian Butcher

Brian Butcher

EVP, Corporate Development, PureRed

Payoneer Workforce Management made our team expansion possible, handling the complex onboarding and payroll processes across six different countries with ease. Their local expertise ensured our compliance, letting us focus on what we do best—serving our clients.

Bret Michaelsen

Bret Michaelsen

Human Resources Director, VRP Consulting

Payoneer Workforce Management’s solutions empowered us to scale our workforce globally with ease, ensuring timely payroll, compliance, and a seamless onboarding experience—all on one powerful platform.

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Shaik Mohammed Shabaz

Head of Human Resources & Administration, Microsense

Payoneer Workforce Management simplified our contractor engagement from start to finish. Their platform covered onboarding, payments, and compliance, making our expansion into new markets practically frictionless.

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Payoneer Workforce Management helps companies expand internationally by hiring employees in Denmark without setting up a local entity. We can support employment contracts, payroll, ATP pension contributions, tax deductions, and compliance with Danish labor laws, while you manage the day-to-day work.

Our EOR pricing starts at $499/month per employee. Contractor management starts at $19/month.

No. Payoneer Workforce Management is the legal employer, enabling you to expand your workforce internationally, whilst we pay employees in Denmark without you needing to incorporate locally.

We manage statutory entitlements such as ATP pension contributions, paid leave, work injury insurance, and access to Denmark’s national health insurance scheme.

Yes. Employer of Record is not formally recognised in Denmark; however, the Workforce Management solution is a legally compliant entity within Denmark, meeting all of the legal requirements and obligations in the country. As the official employer, handling compliance, payroll, HR, and employment contracts, you have the flexibility to direct the day-to-day work.

Onboarding timelines depend on document readiness and approvals, but we can typically prepare employment contracts, payroll, and statutory registrations within 5 to 7 business days.

Written employment contracts are mandatory. They must include job responsibilities, salary structure, benefits, leave entitlements, notice periods, and termination clauses in accordance with Danish labor laws.

The information on this page reflects the details available at the time of publication. For the most up-to-date information, please consult a Payoneer Workforce Management representative or account executive. Skuad Pte Limited (a Payoneer group company) and its affiliates & subsidiaries shall provide EoR, AoR, and contractor management services.

🔔 Skuad is now Payoneer Workforce Management.