Denmark: Employer considerations when employees telecommute from other countries (COVID-19)

Denmark: Employer considerations, coronavirus

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.


Related content

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

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal