The Danish Model
Denmark has a unique employment model that is crucial to attract key employees. It includes high income tax rates, a developed social safety net, and strict business regulations. Employers in organised businesses must follow collective agreements, while unorganised businesses enjoy more freedom in employment contracts and wage setting.
Benefits to Attract Employees
Benefits are the most popular way to attract qualified employees in Denmark. However, some benefits are taxable if they exceed DKK 6,600 annually and are directly work-related. If not directly work-related, the tax limit is DKK 1,200.
Common Work-Related Benefits
- Free food and drink during overtime
- Free news subscriptions for work use
- Free public transport cards for business and personal use
- Employer-paid credit card schemes
- Employer-paid driving licences for work
Common Non-Work-Related Benefits
- Free car
- Free phone
- Free housing
- Free radio and media licences
- Free board and lodging according to the Tax Ministry’s rates
Popular Benefit: Health Insurance
One of the most popular benefits is health insurance coverage. It often includes coverage for the employee’s children up to 24 years old.
In Summary
To attract key employees in Denmark, businesses must understand the Danish employment model. Offering attractive benefits, while ensuring compliance with tax regulations, is crucial. 360 Business Law provides the necessary legal support to help businesses succeed.
360 Business Law offers expert legal advice to help businesses navigate Denmark’s complex employment laws. We ensure compliance with tax regulations and help design attractive benefits packages. Our experienced team supports you in drafting employment contracts that attract and retain key employees.