Social security when relocating to Denmark

When you relocate to Denmark you will be covered by Danish social security system when you have registered properly as tax resident in Denmark.

If you are an employee you and your employer will as a main rule have to pay contributions to the Danish social security system. An exception exists if you have received a confirmation from your home country that you remain in this system under a treaty made between your home country and Denmark. This is normally done by issuing an A1 coverage by your home country.

Social security contributions are 2-3 % of your salary

If no home country social security coverage is granted under a treaty your employer being Danish or non Danish will have pay Danish social security contributions in accordance wirh Danish rules. Your employer will have to pay  a work injury insurance, supplementary labour market pension, holiday allowance and some small social contributions covering primarily education, sickness and barsel. The social security contrbutions paid by the employer is approx 2-3 % of your salary excluding holiday allowance and approx 14-15 % including holiday allowance. Normally the holiday alowance is not defined as a social cobtribution since the holiiday alowance belongs to the employee but since it is a cost for the employer it is most correct to include this as a social security cost.

As an employee you will have to pay uniemployment insurance if you wish this coverage. Even that it is voluntary to do it is normally recommended if you are an expat to avoid coverage problems when reentering your home country social coverage again. The contribution is approx 1-2 % of your salary.

Read about the Danish tax system here

Having an a1 or similar social security coverage from your home country you and your employer will have to pay the social contributions in your home country and will thus not have to pay the Danish social contrbutions.

Independent business owners will also have to have to pay Danish social contrbutions if they do not have a social coverage from their home country under a treaty between their home country and Denmark. The size of the Danish social contributions for independent individuals will be approx. 2-3 % of their profit.

Pension receivers do not pay social contributions on their pension income.

If you need help with Danish social security issues including as well comtrbution obligations and entitlement to coverage of health insurance and pension rights etc, please contact Inwema on info@inwema.dk