In 2026 the first full-time employee costs about DKK 9,600 a year in statutory contributions and holiday supplement on top of a DKK 35,000 monthly salary in an office industry, because no AUB is paid for the first. Workplace injury insurance and any pension come on top. Use the calculator in the guide “What does an employee cost?” with your own figures.
First hire
Hiring your first employee in Denmark: employer checklist
Checklist for your first hire in Denmark: registering as an employer, workplace injury insurance, written terms within 7 days, payroll, ATP, holiday and workplace assessment. Step by step.
Step-by-step guide
- 1
Register the business as an employer
Before paying the first salary, register the business as an employer on virk.dk. You can then report salary, income tax, labour-market contribution and ATP in eIndkomst. Registration also connects you to Samlet Betaling, which collects AUB, Barsel.dk, AES and the financing contribution every quarter. A payroll system automates most of it and is nearly always worth it.
- 2
Take out workplace injury insurance
Workplace injury insurance is mandatory from the first employee, including part-time and short contracts. You buy it from a private insurer, and it covers accidents at work. Occupational diseases are covered by the AES contribution, paid automatically via Samlet Betaling. Without insurance the business is liable itself if an accident happens.
- 3
Give written terms of employment
Employees working on average more than 3 hours a week must receive the key terms in writing no later than 7 calendar days after starting — other terms within 1 month. Include job title, workplace, start date, salary, working hours, holiday, notice periods and any probation. If the employee works at least 8 hours a week in, for example, office work or buying and selling, they are a salaried employee (funktionær). See the guide on employment contracts.
- 4
Set up salary, holiday and pension
Decide the pay period (typically monthly in arrears) and whether the employee gets pay during holiday with a 1% supplement or 12.5% holiday pay. Agree pension if you offer it; beyond ATP it is not mandatory without a collective agreement. Work out the total cost in advance — the guide on what an employee costs shows the contributions on top of salary.
- 5
Do a workplace assessment, and handle staff data
Every business with employees must have a written workplace assessment (APV) mapping the working environment with a plan to fix problems. It must be reviewed at least every 3 years. You also become data controller for the employee’s personal data: store CPR number, contract and payslips securely, and share only what is needed. See the guide on GDPR in recruitment.
- 6
Plan the first 90 days
Book equipment, access and the first week before the person starts. Agree 2–3 concrete goals for probation, and hold a short check-in after 30 and 60 days. As a small business there is no HR department to catch problems, so you have to ask. Use probation actively: it can last at most 3 months for salaried employees.
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Frequently asked questions
The employee is a funktionær if they work on average at least 8 hours a week in buying and selling, office work, technical or clinical assistance, or managing others’ work. Funktionærer have fixed notice periods and the right to pay during sickness, among other things. If in doubt, write in the contract that the Salaried Employees Act applies — it gives both sides clarity.
No, there is no legal requirement for a collective agreement in Denmark. You are only bound if you join an employers’ association with an agreement or sign up to one directly. Without an agreement you set salary, pension and terms in the contract — but the laws on holiday, working environment, written terms and, where relevant, salaried employees still apply.
The employer pays for the first 30 calendar days of a sickness period (the employer period) if the employee meets the employment requirement. After that you can claim reimbursement of sickness benefit from the municipality. Salaried employees are entitled to full pay during sickness, so you pay salary throughout and can claim reimbursement equal to sickness benefit after the employer period.
On Arbejd.com you can post the job for free and also search candidates yourself by role, distance and experience. Candidates are shown anonymously until you message them, and you pay only on contact. For a small business it is a way to recruit without committing money to an ad up front.