Social security and workers' compensation
When you provide services to the Danish market with posted workers, you need to consider the coverage of social security for you and/or your employees.
If your company has employees that carry out work for your company in Denmark, you may be obliged to pay social security contributions to the Danish state under the Danish law.
Your employees will be subject to Danish social security Law, if it is not otherwise stated in EC regulation 883/2004 on the coordination of social security schemes or in conventions on social security Denmark has signed.
If your company posts workers
If your company posts workers to carry out work for a Danish company in Denmark, you will not have to pay social security contributions under the Danish law. However, your posted workers have to be insured under the legislation of the worker’s home country.
A1 document – proof of social security coverage
In order to document that your employees are insured in the home country, they must bring with them a document called the “A1 document”. It is your responsibility, as an employer, that your employees apply for the A1 document before the period of posting starts. Your employees have to apply for A1 in their home country.
If you are self-employed and intend to carry out work on short-term basis, you will also need to have the A1 document with you. You have to contact your home country office for posted workers in order to receive this document.
Find more information about A1 at Your Europe europa.eu/youreurope
If you have employees from country outside the EU
You are not obliged to pay ATP contribution (labour market supplementary pension) for employees that carry out work in Denmark up to 6 months if they have a residence in a country that has not a signed convention with Denmark. If your employees reside in a country that has signed convention with Denmark, it will be evident from the convention whether the 6-month deadline apply.
If your employees are subject to Danish social security rules
When your employees are subject to Danish social security rules, you as a company must:
- pay labour market supplementary pension (in Danish: ATP) for those employees that:
- are aged 16 years and over,
- work at least 9 hours a week, and
- work as wage earners.
When you are obliged to pay ATP, you will also need to pay
- for financial support scheme for trainees (in Danish: AUB)
- financing contribution
- contribution to maternity benefits
- contribution to labour market fund for occupational diseases (in Danish: AES)
- their sickness benefits in connection with their illness
and insure your employees against workplace injuries.
If you have questions on your responsibilities regarding social security contributions (comprising ATP, AES, AUB, financing contribution and contribution to maternity benefits), you should contact the ATP by phone +45 48 20 49 14.
What to do when you have to pay social security contributions in Denmark?
In order to pay ATP and AES and other contributions for your employees, you must register as an employer. You have to submit the registration at the latest 8 days after the first payment of wages.
If you do not have a Danish CVR/SE-number, you can register your company and as an employer by filling out the form “Registration of Non-Danish Company – Start - 40.112”
How to declare and pay ATP and AES contribution?
You have to declare the ATP contribution to the Danish Tax Agency via their online tool TastSelv Erhverv. After you have paid the ATP, you will automatically receive a bill from AES. The amount of AES contribution is calculated on the bases of your declaration to “eIndkomst”.
Insurance against occupational injury
As an employer, you are liable for the consequences of accidents and industrial diseases to which your employees are exposed. In order to insure your employees against work accidents, you must take an insurance policy at a private insurance company. If an accident occurs and your company does not have insurance, you will be obliged to pay a premium and contributions for the period that your workers should have had the insurance coverage. You will also be sanctioned with a fine, and you will be obliged to pay compensation to the injured employee.
Notification of accidents
You must report the injury to the insurance company and to Labour Market Insurance. At their site you can read on how to report the injury.
Where can I get more information on insurance for industrial injuries?
If you need guidance on AES contribution and insurance against workplace injuries, you can always contact Labour Market Insurance by phone +45 72 20 60 00 or by email email@example.com