Work and Wages

Minimum Wage

There is no statutory minimum wage in Denmark. Pay rates for blue-collar and white-collar workers are set through collective bargaining agreements. An agreement may set actual pay rates or minimum pay rates at the industry level. Moreover, the collective agreements also provide for wage increase in the event of inflation (the wage rates are linked to inflation). The wage rates set under collective agreements vary on the grounds of age (different wage rates for workers over or below the age of 18 years), experience (higher wage for more experienced workers) and difficulty level of work.

Since minimum wages are set through the collective bargaining, the first responsibility to ensure compliance with these wage rates lies with trade unions and employer. In case, the employer does not follow the provisions of collective agreement, workers can file complaint with the employer or trade union coordinates.

Regular Pay

Remuneration includes all elements of pay and includes all benefits agreed and provided to the employee as payment for work performed. It includes basic pay, overtime pay, bonus, share incentive and non-pay benefits such as employer provided housing, transport and telecommunication facilities.

The wage payment periods (frequency of wage payment) is not specified under the law and this issue is rather governed by the collective agreements. Employer is required to specify the remuneration and wage payment period in written details of employment conditions provided to an employee, as required under the law. The white-collar workers receive a fixed monthly salary while the blue-collar workers receive their wages on fortnight basis. Wages can be paid either in cash or by cheque or paid directly into the bank account of the worker.

Employers are required to provide employees with pay slips containing minimum statutory information including the identity of worker and employer (name, address and social security number/central business register number); period during which pay is earned; number of working hours; total pay before deductions; amount of tax and social security contributions paid; and net pay after deduction of tax and social security contributions.

Employer is allowed to make certain deductions from a worker's pay: deductions for tax and social security contributions; contributions to labour market supplementary pension scheme; contributions to an occupational pension scheme; and deductions relating to advance payment or overpayment.


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