Employers in Denmark that have directed their employees to telecommute (to perform their work from their homes) may encounter situations when the employees have homes in other countries, such as Sweden and Germany.
Within social security, there are significant differences in the contributions paid in Denmark and amounts paid in the other EU/EES Member States. An employer in Denmark pays DKK 10,000-15,000 per year, per employee, whereas in many other EU Member States, the contribution amounts range from 20% to 40% of the salary.
Employers need to determine if the employee can remain on Danish social security or not.
Applicable social security and the payment of social security contributions by the employee and the employer is determined by several factors—including where the employees perform their work. In many cases, employees will be subject to social security in the country of residence if work performed in the country of residence exceeds 25% over a period of 12 months. Thus, a German employee who usually performs less than 25% of work duties in Germany might, due to the COVID-19 situation, perform more than 25% of these work duties from the employee’s home country. As a consequence, a Danish employer might need to register and pay German social security instead of Danish social security.
Read a March 2020 report prepared by the KPMG member firm in Denmark
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