Azets' Newsletter
for Payroll and HR,
Q1 - 2015

This newsletter presents the recent changes, deadlines and information regarding payroll and HR matters from Q1 – 2015 of interest to small entrepreneurs and up to large international groups.

New rules for severance pay in accordance with Section 2a of the Danish Employers’ and Salaried Employees’ Act (Funktionaerloven)

The new rules apply to terminations of employment that take place after 1 February 2015

If notice is given terminating the employment of a salaried employee that has been in uninterrupted employment with the same company for 12 years or 17 years,  then at the time the employee leaves, the employer must pay an amount corresponding to 1 month’s or 3 months’ wages, respectively.

Basis for calculation

Severance pay is calculated on the basis of the wage at the time at which employment ends, including the value of all fixed elements of remuneration, which includes: any applicable fixed supplements, the value of a company car/telephone/newspaper subscription/etc, and any fixed bonus and/or commission eligible to be included in the calculation. The employer’s pension contributions also form part of the basis for calculation.

New telephone access to SKAT

Effective as of 1 December 2014, new direct numbers to SKAT have been issued to make access easier. Direct number to auditors and other advisers: 72 22 18 17.

Subject Telephone number
  • Tax when you are practising a trade or are owner of a business
  • Deductions
  • The ordinance governing return on capital (kapitalafkastordningen) and the ordinance governing businesses' organisational arrangements (virksomhedsordningen)

Limited companies and limited partnerships, funds and associations

Value-added tax 72222867

Starting, closing and changing a business

Wages to employees (e-income) 72222824

 See all numbers on the website >

New rules governing “G-days” (unemployment benefit compensation days) effective as of 1 January 2015 

As a part of the new employment reform, “G-days” (the first days of unemployment where the former employer must pay unemployment benefits) are being phased out on a gradual basis for employees who have been employed for less than 3 months.

This means that in 2015 and 2016, companies are only required to pay for the first and second “G-days”. In 2017, companies must only pay for the first “G-day” . In 2018 and thereafter, companies will no longer be required to pay “G-days” for employees whose employment period comprises less than 3 months.

Please note that the new rules apply solely to employment periods lasting for less than 3 months.

If the employee is re-employed by the same employer, a new 3-month period begins.

Hotel VAT

Taking effect on 1 January 2015, the deduction for VAT on hotel stays is raised from 75 % to 100 %. Thus the VAT is fully deductible on hotel stays that are strictly for work purposes.

No change is made to the rules governing deductions of VAT on breakfast: it remains the case that only a quarter of the VAT is deductible. It remains a requirement that the invoice specifically itemises the overnight stay, breakfast and any other meals that the employee consumed at the hotel.