Employer cost in Denmark at different salaries
| Salary level | Gross salary | Employer SSC | Mandatory non-tax payments | Total employer cost |
|---|---|---|---|---|
| 67% of AW | 359,838 DKK | 1.0% | 1.6% | 369,196 DKK |
| 100% of AW | 537,071 DKK | 0.7% | 1.1% | 546,429 DKK |
| 167% of AW | 896,909 DKK | 0.4% | 0.6% | 906,266 DKK |
Worked example
The OECD average wage in Denmark for 2025 is 537,071 DKK (about $88,454 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 0.7%, or 3,590 DKK. On top of social security, employers must also make 1.1% in mandatory non-tax payments (labour-market supplementary pension (ATP) and other schemes), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 546,429 DKK a year (45,536 DKK a month), or 263 DKK per hour at 2,080 hours. In 2024 the rate at the average wage was 0.6%, so it rose. The rate stays at about 0.4% even at 167% of the average wage, so it scales with pay.
Denmark ranks #35 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%). Employer contributions are low here, so most of the wage wedge falls on the employee side.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Denmark?
At the OECD average wage of 537,071 DKK, about 546,429 DKK a year including 0.7% employer social security (2025).
What are employer social security contributions in Denmark?
About 0.7% of gross pay at the average wage, 1.0% at 67% and 0.4% at 167% of it (OECD model).