Denmark is a full member of the European Union and enjoys one of the highest standards of living in the world. It also has the distinction of having one of the highest salaries among all developed nations, especially among the EU.
That would explain why expatriates love to come and settle down in Denmark even though some may find taxes too high. Most people do not mind paying the high taxes as Denmark is a welfare state and taxpayers believe they are investing in society.
Many foreigners who want to come and live here are always inquisitive about the minimum wage in Denmark. It may come as a surprise to find out this fact.
Bonus tip: If you work in Denmark already, make sure you check this out:
Minimum Wage in Denmark
There is no law in Denmark that mandates minimum wage. In fact, minimum wage is decided through collective bargaining agreements in each sector. Nonetheless, employers and companies know their responsibility to their employees and hence, you can expect a minimum wage of about DKr110 per hour.
The average number of hours that an employee works in Denmark is 37 hours. Hence, based on this, an employee working on the so-called minimum wage in Denmark can expect to earn approximately DKr17,000 a month if they work full-time. This is the gross salary before tax deduction.
Most foreigners want to also know more about the average salary in the country besides the minimum wage.
Average Salary in Denmark
Denmark is a developed welfare state and that is why the difference between minimum wage and the average salary is not too much. According to statistics and reports, the average salary in Denmark is approximately DKr20,900 after tax.
Working in Denmark
Currently, Denmark has a strong demand for skilled foreign workers and usually, these roles and positions do not require skilled workers to know Danish. So, this is an added advantage for skilled professionals, who are looking to make Denmark their home.
Some of the fastest-growing sectors in the country are energy, IT, research and development (R&D), beverages and pharmaceuticals. Most jobs are based in Copenhagen, but there are opportunities in other parts of Denmark.
The skilled positions in Denmark are open to foreigners from the European Union and many offer higher salaries compared to other member nations of the EU. While Denmark does have openings for low skilled positions, it is tougher to get work permits for these positions. These positions are often filled by nationals from third world countries, who have the legal rights to reside in the country.
The labour market in Denmark is based on offering flexibility to employers, security to employees and a highly active labour market. Hence, it is designed to meet the needs of employers, employees and the unemployed.
When you come to Denmark, you will notice workers enjoy ongoing skills development and education. So, you will always have an opportunity to acquire new skills and improve your knowledge and educational qualifications.
On the other hand, unemployed people and professionals can use the services to find jobs and as a result, they have the support and assistance to actively look for a job and get gainfully employed. And, while they are unemployed, they do not experience the same levels of financial anxiety that people in a similar situation experience in other developed countries.
The Bottom Line
Denmark is a beautiful and welcoming country. It has numerous opportunities for foreigners who are skilled and have the experience to back them. They will be able to find the right job profile without too many hassles. However, the average salary and minimum wage in Denmark may not always be enough for people living and working here even though the country is a highly developed welfare state. Under such circumstances, you can always apply for a private loan at an attractive interest rate to help meet your financial needs.