If you’re hiring in Denmark, you need to know what’s required of you. The rules around leave, sick pay, and parental benefits are statutory minimums, and many are supplemented further by collective agreements. Here’s what you need to have in place in 2026.
Annual leave and the holiday supplement
Denmark’s annual leave system runs under the Holiday Act (Ferieloven) and uses a concurrent model: employees earn and use leave within the same year rather than accruing it in one period and spending it in the next.
Accrual and the concurrent holiday model
Employees are entitled to 25 working days of paid leave per year, accrued at 2.08 days per month of completed work. Leave earned in a given month can be taken in that same year. Employees who haven’t yet accrued enough to cover a requested period can still take time off, but it may be unpaid.
The holiday supplement (ferietillæg)
On top of standard holiday pay, employees are entitled to a holiday supplement called ferietillæg. The statutory minimum is 1% of annual salary, but it’s commonly 3% or higher under collective agreements. It’s paid when the employee takes their leave, so make sure your payroll setup treats it as a separate line item.
Public holidays
Denmark has 10 statutory public holidays in 2026. If your business requires work on a public holiday, check what your collective agreement or employment contract says about compensation.
Sick leave
Danish sick leave involves a handoff between the employer and the municipality. The timeline determines who pays.
The 30-day employer period
You’re responsible for sick pay during the first 30 calendar days of an employee’s illness. Payment starts from day one if the employee meets the 74-hour rule: employed for at least 8 weeks and worked at least 74 hours in that time.
The rate depends on employee status. White-collar employees (funktionærer) are typically entitled to full salary; for others, the statutory cap is DKK 5,085 per week (DKK 137.43 per hour). After day 30, the employee’s municipality takes over payments.
The 120-day rule
If written into the employment contract, the 120-day rule lets you terminate a sick employee with one month’s notice after 120 or more days of absence in a 12-month period. This clause must be in the contract before the illness starts. You can’t add it retrospectively, and without it, standard termination protections apply regardless of how long the absence lasts.
§56 Agreements
For employees with chronic conditions likely to cause 10 or more sick days per year, a §56 agreement lets you claim municipal reimbursement from day one of each absence rather than waiting through the 30-day employer period. It requires a formal agreement between you, the employee, and the municipality.
Parental leave
Denmark reformed its parental leave system in 2022. The new rules apply to children born or adopted from 2 August 2022 onwards, and the total entitlement per family is 52 weeks, split between each parent rather than pooled.
Maternity and pregnancy leave
The birth mother gets 4 weeks of pregnancy leave before the due date and 10 weeks of maternity leave after birth. Two of those post-birth weeks are compulsory, and 8 are earmarked for her and can’t be transferred.
Paternity leave
The father or co-parent gets 2 weeks of paternity leave within the first 10 weeks after birth. These weeks are non-transferable.
Earmarked and shared parental leave
Each parent also receives 9 weeks of earmarked parental leave that can’t be transferred; if unused, they’re lost. Beyond that, there are 26 weeks of shared/transferable leave (13 weeks each) that can be transferred between parents or postponed until the child turns 9.
The maximum state benefit rate (barselsdagpenge) is DKK 5,085 per week. Many employers top this up to full salary through collective agreements or individual contracts, so check what your sector requires.
Atp pension contributions
All Danish employers must contribute to the ATP labour market supplementary pension scheme. For full-time employees, the employer contribution is DKK 198 per month and the employee contributes DKK 99 per month. Rates adjust for part-time hours, and ATP is separate from any occupational pension under a collective agreement.
Collective agreements and employer top-ups
A significant portion of Danish employment terms are set by collective agreements (overenskomster) negotiated between employer associations and trade unions. These commonly set higher sick pay rates, extended parental leave top-ups, better holiday supplements, and additional pension contributions beyond the ATP minimum. Even if your business isn’t formally party to an agreement, the terms may still apply if your employees are union members or if you’ve agreed to follow a relevant agreement in your contracts.
Managing danish benefits through an Employer of Record
Denmark’s benefit rules are detailed, and the interaction between statutory minimums, collective agreements, and individual contracts creates real room for error when you’re managing from outside the country. An Employer of Record (EOR) acts as the legal employer on your behalf, handling payroll, leave tracking, sick pay, and compliance with collective agreements.
If you’re new to the model, read up on what an EOR is before evaluating options. Comparing EOR services on cost, coverage, and local expertise is a good place to start.
Book a demo to see how RemotePass manages Danish leave and benefits on your behalf.
Frequently asked questions
Do danish employees get paid during sick leave from day one?
Yes, provided they meet the 74-hour rule: at least 8 weeks of employment and 74 hours worked in that time. If they don’t meet this threshold, they may need to claim directly from the municipality.
Can you require employees to use accrued leave during a notice period?
Yes, in most cases. You can require employees to take remaining holiday during the notice period, provided you give adequate notice as set out in the Holiday Act or their contract.
Are all danish employees covered by collective agreements?
Not automatically. Coverage depends on your sector, your membership in an employer association, and whether your employees are union members. Many collective agreement terms have become market standards, so you’ll often find yourself matching them regardless of formal coverage.
What happens if you don’t include the 120-day rule in a contract?
If it’s not in the contract before the illness begins, you can’t invoke it. The employee retains full termination protections regardless of how long they’ve been absent. It’s a decision to make at the point of hiring, not after an absence has started.
