A. Pension contribution for the employee as well as the employer must be withheld each month if applicable. The contribution is calculated upon the actual pensionable salary. In this example employee contribution is 5%, deductible in the taxable income, employer’s contribution is 10%. Please note that pension amounts can be subject to and determined by collective agreements.
B. Compulsory ATP contribution also called “old age pension”. The employee contribution is DKK 94.65 each month and employer contribution is DKK 189.35 each month for a full-time employee in year 2018. See current contribution rates on this link https://lifeindenmark.borger.dk/-/media/LID/Documents/ATP/ATP_Contribution_rates_2016.ashx
Payment of withheld contribution for the employee as well as the employer is due every third month on the 7 th in the month of February, May, August and November. If the original due date is in a weekend or on a public holiday, the due date will be changed to the first coming weekday after the original due date.
C. Labor market contribution 8% (AM-bidrag) All working citizens must pay labor market contributions. The employer will deduct the contributions from the employees pay. Labor market contributions are used for the Government's labor market expenses, for example to cover unemployment benefits, supplementary training courses and maternity. It should be noted that the labor market contributions are actually a tax, deducted from employees' gross pay. Company withheld labor market contribution is paid together with the company withheld tax for employees. You can find more information about tax payment and due dates etc. via the following link http://www.skat.dk/skat.aspx?oid=2244415&ik_navn=transport
D. Tax, as a foreign company liable to pay tax in Denmark, you must withhold labor market contributions and A-tax for your employees according to the same rules that apply to Danish businesses with employees. You must withhold tax from the employees' first day of work in Denmark. Every employee needs to have a Danish civil registration number (CPR number) and their own personnel tax card with a tax percentage and a tax-free amount each month. When you hire a new employee, Visma will automatically request the tax card electronically from SKAT. If an employee gets a new tax card Visma will automatically get the new tax card from SKAT. For more info please visit http://www.skat.dk/skat.aspx?oid=2244389&ik_navn=transport
E. The tax card Basis for holiday payment is the holiday entitled pay, taxable amount of company car and telephone if applicable. The employee saves up an additional holiday supplement of 1% that is due with the salary in May, if the employee still is employed with the company. It is calculated upon basis for holiday payment earned the previous year. When an employee is terminated, he/she is entitled to 12,5% of basis for holiday payment earned the previous year. In Denmark, you earn the right to 2,08 days of holiday per month during the calendar year, which is 25 days for a whole year = 5 weeks. You take the holiday earned the previous year from May to April. Ex. Holiday earned in 2 January – December 2017 – can be taken from April 2018 – May 2019.
Please note that new vacation rules will apply as of September 2019. You can find an description of the new holiday law here: https://community.visma.com/t5/Vejledninger/The-new-Danish-Holiday-Law-English-version/ta-p/133245/jump-to/first-unread-message
The employer’s actual costs are:
Pension (if applicable)
Company car (if applicable)
Company telephone (if applicable)
Holiday payment 12½ %
AER DKK per employee every three month