When comparing working conditions in Denmark and Sweden, it is often quite confusing to get an overview of different rules and procedures. In the following table we provide an overview of the major differences with regards to working conditions for EU-citizens in working in Denmark and Sweden.
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Work Permit
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Not required
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Not required
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Staying more than 3 months EU-citizens need a residence permit.
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Normal Weekly Working Hours
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40 hours
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37 hours
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Swedes working in Denmark and Danes working in Sweden must follow the labour legislation in the country where they work.
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Job Security
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Regulated by legislation. Difficult to give notices.
Notices are given on the basis of seniority.
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Flexible hiring and firing practices.
Firing practices and notices are determined by the hiring conditions.
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Union Insurance System
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About SEK 300 a month.
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DKK 300 - 1000 a month.
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Absence and Illness
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Employers are responsible for an extensive rehabilitation program.
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More than 120 days of absence a year can be a valid reason for terminating a contract.
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Workers Participation
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Unions negotiate important changes.
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Unions have no rights to be consulted compared to Sweden.
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Wages
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Regulated by collective agreements but individual negotiations are becoming more normal. In Sweden wages are normally lower than in Denmark because Sweden has higher employer charges and lower income tax.
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Regulated by collective agreements but individual negotiations are becoming more normal.
Danish pre-tax wages are 30-50% higher than Swedish pre-tax wages.
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Sickness Compensation
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80% of the salary (up SEK 295.500 a year). One day’s waiting period without payments.
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90% of the salary (up to DKK 3.267 a week) from the first day of illness. Some agreements give full wages during illness.
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Children’s Care
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Parents can obtain a compassionate leave until the child is fully recovered (a medical certificate can be required after a week).
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Normally no compensation but some agreements include full wage compensation during the first day.
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Wages During Parents’ Maternity Leave
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480 days with compensation (60 days with lowest compensation rate)
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52 weeks with full wage or daily subsistence allowance (dagpenge)
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Taxation
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Danish commuters must pay SINK-Taxation in Sweden (25% of the salary).
In some cases commuters are liable to full taxation in Sweden. (*)
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Swedes working in Denmark pay tax, pension contributions (1%) and other duties (8%) (arbejdsmarkedsafgift) (*)
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Employees are liable to taxation in the country where they earn their salary.
(*) Employees hired before January 1997 must pay tax in their country of residence.
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Source: Øresunddirekt, AF Öresund
More information
For more in-depth information, please contact Kim Lundberg at Copenhagen Capacity, direct phone +45 33 29 87 16 or e-mail kbl@copcap.com.