Denmark Employment Severance & Notice Calculator
Calculate mandatory statutory termination notice periods (1 to 6 months), full salary continuation, and statutory severance pay (1 to 3 months gross wage) under Danish labor law.
Direct Answer: Statutory Dismissal Rights in Denmark
Mandatory employer obligations for salaried staff (funktionaerer)
Employment Details
Statutory Dismissal Settlement Funktionaerloven
Termination notice must be given prior to the first day of the month in which the notice period begins to run. Notice given on the 1st of a month counts from the end of that same month.
Statutory Matrix: Notice & Severance under Funktionaerloven
Mandatory notice periods and statutory severance compensation by employee tenure.
| Seniority Tier | Employer Notice (§ 2) | Employee Notice (§ 2) | Statutory Severance (§ 2a) | Tax Treatment |
|---|---|---|---|---|
| Probation (Provetid ≤ 3 mos) | 14 calendar days | Immediate / 14 days | — | Standard salary tax |
| 0 to 5 Months | 1 Month | 1 Month | — | Standard salary tax |
| 5 Months to 2 Yrs 9 Mos | 3 Months | 1 Month | — | Standard salary tax |
| 2 Yrs 9 Mos to 5 Yrs 8 Mos | 4 Months | 1 Month | — | Standard salary tax |
| 5 Yrs 8 Mos to 8 Yrs 7 Mos | 5 Months | 1 Month | — | Standard salary tax |
| 8 Yrs 7 Mos to 12 Years | 6 Months | 1 Month | — | Standard salary tax |
| 12 to 16 Years | 6 Months | 1 Month | 1 Month Salary | First 8,000 DKK tax-free |
| 17+ Years Continuous | 6 Months | 1 Month | 3 Months Salary | First 8,000 DKK tax-free |
Frequently Asked Questions: Danish Employment Severance
What are the mandatory notice periods for employers under the Danish Funktionaerloven?
Under Section 2 of Funktionaerloven, employers must provide notice expiring at the end of a calendar month: 14 days during an agreed probationary period; 1 month during the first 5 months; 3 months after 5 months service; 4 months after 2 years and 9 months; 5 months after 5 years and 8 months; and 6 months after 8 years and 7 months.
Who qualifies for statutory severance pay (Fratraedelsesgodtgorelse § 2a)?
Under Section 2a, an employee dismissed by the employer who has completed 12 years of continuous service with the same enterprise is entitled to 1 month of additional gross salary. Employees with at least 17 years of continuous service are entitled to 3 months of gross salary.
How is severance pay taxed in Denmark under Ligningsloven § 7 U?
Under Section 7 U of the Danish Tax Assessment Act (Ligningsloven), the first 8,000 DKK of statutory severance pay is completely exempt from Danish income tax and labor market contributions (AM-bidrag). Any amount exceeding 8,000 DKK is taxed personal income.
Does the employee continue to earn pension and holiday pay during the notice period?
Yes. Even if the employee is released from work duties (fritstillet), the employer must pay full base salary, contractual pension contributions, health insurance, company car allowances, and accrue 2.08 days of paid annual leave per month throughout the entire notice duration.
What notice must the employee give when resigning voluntarily?
Under Funktionaerloven § 2(6), a white-collar employee resigning voluntarily must give only 1 month's notice to the end of a calendar month, regardless of whether they have worked for 1 year or 20 years, unless an extended mutual notice period was negotiated in the employment agreement.
📊 Skatteforvaltningen & Danish Labor Market (AM-bidrag) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (DKK) |
|---|---|
| Primary Net / Statutory Payable Amount | 0 kr. |