Guide to living and working in Denmark

Denmark

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Country Overview

 

Population

5.4m

Unemployment Rate

2.8% (11/07)

Average annual unemployment rate 1995 – 2004

5.6%

GDP

Dkr 1,552bn / €208bn / $308bn

GDP per head

€32,342 / $47,910

Capital

Copenhagen

Major language

Danish

Life Expectancy (UN)

76 years (men)

81 years (women)

Monetary unit

1 krone = 100 ore

Internet domain

.dk

International dialing code

+453

 

The Danish economy has recently undergone strong expansion fuelled primarily by private consumption growth, but also supported by exports and investments. However, the beginning of 2008 is showing some stresses in the economy and signs of a slow-down. Its modern market economy features high-tech agriculture, small-scale and corporate industry, extensive government welfare measures, comfortable living standards, a stable currency and high dependence on foreign trade. Unemployment is low. Denmark is a net exporter of food and energy and has surplus on its balance of payments surplus. Because of high per capita GDP, welfare benefits, a low Gini index, and political stability, Danish living standards are among the highest in the world. A major long-term issue is demographic; there is a sharp decline in the ratio of workers to retirees.

The Economy

 

 

Industries include: iron, steel, nonferrous metals, chemicals, food processing, machinery and transportation equipment, textiles and clothing, electronics, construction, furniture and other wood products, shipbuilding and refurbishment, windmills, pharmaceuticals and medical equipment.

 

Pay

 

 

 

Human development Index

Ranking:  14th
Index value:  0.949
 

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 


Getting a job

Overview of the labour market:

The Danish labour market is divided into 14 regions, each with a regional labour market council and a public employment service. At the national level there is a corresponding National Labour Market Council and National Labour Market Authority which are in charge of the practical administration of the labour market system. All these bodies report to the Ministry of Employment.

In general, the overall economic situation in Denmark is strong,strong; it currently has a record surplus on its balance of payments. Competitiveness in Denmark is among the best in the world. The “spring package” tax reform implemented by the Government in 2004 has contributed to the strong growth and economic upturn. The plan contained initiatives to increase employment and reduce unemployment, which took the form of tax relief and private consumption incentives as well as public investment advances.

Applying for a job:

Applications are normally typed. Application forms are uncommon; where used, they will usually cover education, training and courses, work experience, hobbies and personal interests. Leisure activities are sometimes considered important when applying for a job in Denmark.

Unsolicited applications – including showing up in person – are a common way of finding a job in Denmark. This usually requires a basic fluency in Danish; although in general there is a high level of spoken English among the population. Most applications do not require a photo, although this is changing and becoming more commonly requested.

A Danish Curriculum Vitae should be brief, well presented and take up a maximum of two A4 pages. The CV should be ordered chronologically: for example in ‘work experience’ it is customary to start with the present or most recent job.

 

Conditions and rights

Employment law:

Collective agreements determine most of the terms and conditions enjoyed by Danish workers. Employment laws have traditionally existed to provide a framework for collective bargaining and to reinforce the application of resulting agreements. However, there has recently been a marked swing away from these arrangements, towards the direct application of statutory requirements in the employment field.

Working hours: are determined through collective agreements.

Standard hours: are normally fixed at 37 hours a week.

Overtime: is governed by collective agreements. Overtime pay is fixed at 150-200%. Some collective agreements allow employees to choose between receiving payment or being allocated time off instead of payment. The definition of overtime depends on what is set out in the collective agreement. Some collective agreements state that only hours worked in excess of the normal working week can be considered overtime, while for others, overtime includes all hours worked in excess of the normal working day.

Holidays and leave:

There is no legislation on public holidays: whether an employee is expected to work or not will be determined by his/her agreement with the employer. All employees are entitled to 30 days’ annual leave on the basis of 2.5 days for each month worked the previous year. The leave year runs from 2 May to 30 April. In order to be entitled to paid holiday, an employee must have been employed in the calendar year proceeding the leave year. An employee who has not worked a previous year may nevertheless take 30 days of unpaid annual leave.

Maternity care: Women living in Denmark are entitled to maternity care. Maternity care includes medical consultations, hospital admission or the help of a midwife with home births.
Maternity and parental leave: Parents are entitled to 52 weeks of parental leave with full benefit. The mother is also entitled to four weeks of maternity leave before the child is born and 14 weeks after the child is born. During the same period the father is entitled to two weeks of paternity leave. When the child is 14 weeks old, both parents are entitled to 32 weeks of parental leave with full benefit to be divided freely between them. They may choose to spend the leave together or one after the other. The father may begin his 32 weeks of leave alongside (or instead of) the mother’s 14 weeks of maternity leave.

Public holidays: 1 January, Maundy Thursday, Good Friday, Easter Monday, Common Prayer Day (the fourth Friday after Easter), Ascension Day, 5 June (from noon), Whit Monday, 25 December and 26 December.
Bonuses: Work on public holidays entitles the employee to a bonus of 100%.

 

Contracts

Types of employment:

You must be at least 15 years old to enter into a contract of employment. The employment contract can be entered into both orally and/or in writing. If you are employed for more than a month, the employer must provide written confirmation of the employment. The most common form of employment is as an employee with a working week of 37 hours and five weeks’ annual leave.

Employment contracts:

An employment contract must describe salary conditions, workplace, working hours, annual leave and notice period. There are no legislative requirements as to the duration of an employment contract. It may remain in force until notice is given by either the employer or employee.

Fixed-term employment may not exceed three months. During this term, the employer can dismiss the employee at two weeks’ notice. During the three-month statutory period for temporary employment, the employer and the employee may agree on a notice period
.

 

Visas and work permits

Visas:

Denmark is a signatory to the Schengen Treaty. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.

The following countries can visit Denmark without a visa for up to 90 days: Nordic countries, EU countries, Andorra, Argentina, Australia, Bermuda, Bolivia, Brazil, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Ecuador, El Salvador, Estonia, Guatemala, Honduras, Hong Kong, Hungary, Israel, Japan, Korea, Republic Of Latvia, Liechtenstein, Lithuania, Macao, Malaysia, Malta, Mexico, Monaco, New Zealand, Nicaragua, Panama, Paraguay, Poland, Romania, San Marino, Singapore, Slovakia Slovenia, Switzerland, Uruguay, Vatican City, and Venezuela.

Nationals of countries not mentioned above will need a visa to visit Denmark. Applications should be made at the Danish consulate in your current country of residence (or other diplomatic representation if there is no consulate).

Work Permits:

Citizens of ‘old’ European (EU, EFTA, EEA) Member Countries: are able to live and work in Denmark without a visa or work permit.
Citizens of ‘new’ EU Member Countries: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) must have work and residence permits if they wish to work in Denmark.
Non-EU citizens: If you are from a country that is not a European (EEA) member, you must obtain a work visa or permit to work in Denmark.

Applicants must have been offered a position involving at least 30 hours a week and the job must meet any relevant conditions laid down by the collective labour agreement. Workers may not start work in Denmark until the Immigration Service has issued them with a residence and work permit. However, if workers are offered a job by a company which has been granted approval in advance for the employment of foreign nationals, they may begin work as soon as their employment has been registered with the Immigration Service. The permit applies only for the specific job for which it is issued. If a person gets a new job, he or she must apply for a new permit.

 

Tax, social security and healthcare

Taxation system:

All Danish residents are liable to taxation on their income. Personal income tax is paid to state, county and municipality. The Danish tax system is a graduated tax system where people are assessed according to their personal income: the higher earnings, the more tax is paid, up to a certain level. The total income tax to state, county and municipality can never exceed 59%.

Income tax is paid from salary income, investment/unearned income and employee benefits. There is a special tax rate for dividends and certain income in connection with share trading.

The Danish tax system comprises a number of conditions and regulations that favour foreign labour in Denmark: The 25% tax scheme means that key employees and researchers recruited abroad can obtain a significantly lower tax rate during their first three years of residence in Denmark. If your family remains in your native country, allowances for double residence are given. Denmark has entered into agreements with other countries to avoid double taxation. Foreign employees remain covered by the social security of their native country, if certain conditions are met, and in this case, the employees do not pay social security contributions in Denmark.

When entering into a contract and agreeing to take up employment in Denmark, it is important to find out which tax system you are subject to. You may:

  • fall within the special 25% tax scheme for foreign researchers and key employees,
  • be subject to ordinary income taxation,
  • be subject to full or limited tax liability in Denmark, e.g. if you are a transfrontier worker residing abroad.


Social security system:

Denmark has a high level of social security. This is partly financed through taxes. Participation is compulsory in most branches of the Danish social security system. You therefore do not need to make a formal application, except in regards to unemployment insurance, which is optional. Once you have found a job, it is important to remember to join an unemployment fund.

Foreigners who come to Denmark are covered by Danish social security as soon as they start working. Social security benefits in Denmark apply both to employees and the self-employed and include the following: health insurance, medical assistance, free hospitalisation, sickness benefits, rehabilitation, maternity and paternity leave, rehabilitation allowance, national old-age pension, voluntary early-retirement pay, survivor’s pension, family benefits, industrial injury insurance, unemployment insurance and cash benefits.

Health systems:

The health system consists of hospital services and the primary health sector, and covers preventive health programmes. Medical assistance and hospitalisation are free of charge. Although most care is free, there are charges in some areas, e.g. 75% reimbursement of vitally important drugs and 50% reimbursement of other prescribed drugs. Dental treatment is only partly reimbursed. EU nationals working in Denmark are entitled to the same medical treatment as Danish nationals. Free treatment is available to visitors and job-seekers in case of emergencies. A doctor’s referral is normally required for hospitalisation – except in emergencies where first aid is free (for EU citizens a European Health Insurance card is required).

After registering with the National Register in your municipality of residence, you are automatically covered by the general national health insurance scheme. You will be sent a health insurance card, giving you access to the public health services provided by your insurance. You must bring your health insurance card with you every time you visit doctors, dentists, therapists, psychologists, pharmacies, hospitals etc. Over the past few years, private hospitals have experienced some success. Some employers insure their employees so they can be treated at a private hospital, thereby avoiding waiting lists. Unlike public hospital services, treatment at private hospitals is not free of charge.

Lifestyle

Denmark, since it has a relatively small economy, is made up of predominantly small and medium sized businesses, operating mainly in the service sector. There is a strong sense of community in the country, where a tax burden is recognised as the cost of a developed and progressive welfare state offering a high standard in health & education.  The society is modern, progressive and integrated.  It is considered one of the best places in Europe for family life.

 

Report complied: 2008
Copyright © 2008 Exposure Jobs