Danish employer
As a Danish employer you must pay contribution to The Danish Labour Market Fund for Posted Workers.
You are considered to be a Danish employer, when you establish business activities in Denmark. This means that you have to follow the same rules and pay the same contributions, including contributions to The Fund. If you only intend to post employees to Denmark without establishing here, you will be considered to be a foreign employer. Read more under 'Foreign employer'.
Contribution
The Fund ensures that posted employees receive wages while working in Denmark. This requires, however, that you have signed up to a collective agreement.
A collective agreement is an agreement between employees’ and employers’ organisations which sets down the overall terms for the employment.
The Fund is financed via statutory, solidarity-based contributions from employers. Contributions will be collected each quarter by Samlet Betaling, a joint collection of a number employer’s contribution.
The collection does not only cover the contribution to The Fund, but also other statutory contributions for Danish employers. You can read more about the collection by Samlet Betaling here: Go to Samlet Betaling
Contribution rate
The contribution rate per employee is determined by the Ministry of Employment. If you have employees, you will have to pay contributions.
| Year | Yearly contribution per full-time employee | See rules regarding the annual contribution rate on retsinformation.dk |
|---|---|---|
| 2024 | DKK 0.00 | BEK nr. 1598 af 12/12/2023 |
| 2023 | DDK 0.00 | BEK nr. 1468 af 01/12/2022 |
| 2022 | DKK 7.00 | BEK nr. 2403 af 09/12/2021 |
| 2021 | DKK 17.00 | BEK nr. 1784 af 22/11/2020 |
| 2020 | DKK 12.00 | BEK nr. 1311 af 04/12/2019 |
| 2019 | DKK 4.50 | BEK nr. 1310 af 04/11/2018 |
Extraordinary contribution
If you have concluded an agreement with a foreign employer that the foreign employer will be performing work on your behalf in Denmark, you constitute what is known as a Danish principal. As a Danish principal, there is a risk that you may have to pay an extraordinary contribution to The Fund.
This occurs where the foreign employer with which you have concluded an agreement is reported to The Fund because the foreign employer has not upheld a valid collective agreement and paid the wages owed (wages, etc.) to their employees. You risk being required to pay extraordinary contributions if:
the foreign employer is registered as a company in an EU/EEA country
it has been determined via a court or industrial tribunal ruling that the foreign employer is liable to pay wages owed
The Fund has determined that you are the Danish principal for the foreign employer.
The extraordinary contribution that you risk having to pay will, as a rule of thumb, be 25 per cent of the total wages owed by the foreign employer. The total wages owed will be stated in the court or industrial tribunal ruling. If the foreign employer’s lack of payment has previously meant that The Fund has covered wages owed to employees inside a period of 36 months, the extraordinary contribution is increased to 40 per cent. If The Fund has covered wages owed more than twice, the contribution is increased to 50 per cent.
List of foreign employers
When The Danish Labour Market Fund for Posted Workers covers wages owed to a posted employee who is owed wages from their employer, the foreign employer will be included in a public list of companies who have not paid wages to their employees. See link to the list below. As a Danish employer it is a good idea to check the list of foreign employers that have given rise to payments from The Fund before you concludes agreements with them. Otherwise you may risk having to pay an extraordinary contribution to The Fund if the foreign employer gives rise to new payments. The list is continuously updated whenever a lack of payment by a foreign employer is reported to The Fund. The foreign employer will be included in the list for 36 months after the last time The Fund covered wages owed to it's employees.
The name and RUT no. of foreign employers who have not paid wages to their employees can be found here: Go to the list of foreign employers
Legislation etc.
Here you can find legal guidance relevant to The Danish Labour Market Fund for Posted Workers and read about how we process your personal data.
Legal guidance
How we process personal data
In the following, you can learn more about what data The Fund processes, how we process the data and your rights in that connection.
