PEO in Denmark

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is your top local partner for human resources services around the world. With our global PEO, you can set up your business, hire talented workers, and find success in 80+ countries, all while cutting through the red tape and extra costs that usually come with global expansion.

A PEO (Professional Employer Organization)  is a local partner that facilitates companies who want to outsource their HR services or expand into a new region or country without having to create a separate legal identity.

With a PEO, you can be assisted in employing your staff and the management of other employee services such as recruitment, payroll, benefits, and compensation. ‘These global HR outsourcing services allow you to save time and money while avoiding complicated local regulatory procedures.

PEO in Denmark - Summary

Using a PEO: Five Major Advantages

Legal Compliance

With a wealth of in-depth knowledge regarding local legal and administrative procedures at their disposal, a PEO ensures that your company complies with every aspect of local laws in an intelligent and efficient way

Reduced Cost And Time

One of the common issues encountered when entering a new market is that even a minor problem with HR can lead to shockingly high fees and fines. A PEO will help you avoid these costly errors

Increased Company Growth

By covering many laborious tasks, including payroll outsourcing, recruitment, headhunting, and contractor management services, a PEO allows you to focus your time and energy on successful market growth

Fast Market Entry

The estimated time for Company Incorporation in a new market: 4-12 months

The estimated time to establish a PEO relationship: 5 days

*Global estimate

One Platform For All Your Needs

A Professional Employer Organization covers every aspect of HR services and streamlines them into a single point of contact, saving you from having to manage multiple staff or departments at once

Why Choose PEO Over Company Incorporation?

Crossing over into a foreign market can often be a complex and challenging process, requiring both a legal and physical presence in the target market. But if you work with a PEO, your company can operate efficiently in the new market without struggling through countless laborious steps required to form and incorporate such an entity.

  • Decreases processing time
  • Reduces costs
  • Avoids potential legal pitfalls
  • Employs local networks and expertise
testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 


How Does A PEO In Denmark Work?

With four simple steps, INS Global’s PEO will take care of your employee recruitment and HR needs in Denmark:

  1. We discuss your situation and requirements, and together build a plan that best serves you.
  2. Our organization provides a legal entity to bring in employees to begin operations in Denmark.
  3. We manage all the administrative and legal aspects of hiring and paying your employees.
  4. Your employees continue day-to-day operations, setting your company on the fast track to success in the Danish market while we cover all the HR details.

What’s The Difference Between PEO And EOR?

Once you decide to expand into a new market and want to begin a PEO agreement, it’s crucial that you understand the difference between PEOs and global Employers of Record (EOR)  so that you can choose the service that’s the most suitable for your needs:

  • A PEO is a company that provides HR services to employees of other companies. These services may include payroll, tax, and legal regulation compliance, among others.
  • An EOR is a company that acts similarly to a PEO, but it can also legally and officially hire employees on behalf of other companies.
  • Beside the services provided by a PEO, Employers of Record also take on all of the liabilities for recruiting and employing workers.
  • In a PEO agreement, the contract is made between the original company and the employee.
  • In an EOR agreement, the contract is directed by the original company but made between the EOR and the employee.

Labor Law in Denmark

The contract in Denmark should be written in Danish, with the currency as Danish krone. It must include all details of an employee’s responsibilities and benefits. The contract must be completed one month before the employee begins work. Failure to comply with this could result in the employer compensating the employee up to 10,000 Kroner.

Many details regarding an employee’s rights and benefits are decided via collective bargaining agreements (CBAs). CBAs determine essential aspects such as overtime pay and vacation days, so it is necessary to thoroughly understand them and the preexisting standards established by the relevant industry.  

Working Hours and Overtime in Denmark

On average, the working week in Denmark is 37.5 hours, with 48 hours being the maximum including overtime. Employees are entitled to at least one day off per week, typically Sunday.

Employees are expected to take 11 hours off between work shifts unless otherwise negotiated.

Holidays and Annual Leave in Denmark

Public holidays in Denmark are as follows: Jan. 1, Maundy Thursday,   Good Friday, Easter Monday, Common Prayer Day, Ascension, Pentecost, Whit Monday, Christmas Day, and Boxing Day.

These days are treated as paid national holidays unless the day would otherwise fall on a weekend or rest day.

Annual paid vacation days are calculated as 2.08 days per month worked, or roughly 5 weeks of leave per year.

Sick leave in Denmark

Employers will pay for the first 30 days of sick leave in Norway. Employees can expect to receive their full salary, bonuses included. Afterwards, the state will compensate the employee up to a maximum weekly amount.

Maternity/Paternity Leave in Denmark

Expectant mothers can take 4 weeks of leave during the pregnancy, and 14 weeks post-delivery and will receive at least 50% of their salary.Depending on the CBA, the amount can be as much astotal salary compensation.

Fathers are entitled to two weeks of leave after the birth of their child, also receiving 50% of their salary. Parental leave payments are typically issued by the government, not individual employers.

Tax Law and Social Contributions in Denmark

Employees in Denmark are expected to pay a complex system of taxes that cover a range of services, including a social security tax that is 8% of gross income.

The total amount of taxes should not exceed a maximum of 52.06%, but other smaller taxes such as church tax are not included in this total.

Employers are expected to withhold salary to contribute towards an employee’s social security contributions and contribute an amount towards their employees’ contributions themselves. Employers should expect to contribute DKK8000-10000 per year per employee.


Discover More Solutions in Denmark


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.