Wage and work time in Construction

Collective agreements

In Denmark it is not the government but the social partners that agree upon the regulations of the labour market. The regulations are written in an agreement between your union and an employers’ organisation/ your company. In Denmark there is no statutory minimum wage. Therefore, you always need to know for which company you work, and whether your employer has a collective agreement. In this regard your local union is always available with help and guidance.

Employment contract

In Denmark you must have an employment contract containing:

Name
Address
Telephone number
Type of pay – hourly or piecework
CPR/CVR-number
Date of commencement
Info regarding the collective agreement

The employment contract must be signed in two copies by your employer and yourself.

Minimum wage

The wage is agreed upon between you and your employer based on the collective agreement. The minimum wage depends on your trade group. Remember that the minimum wage only is the starting point for the negotiation. In the box below you find some of the rates, applying from March 2022 until February 2023. And the average rate reflecting the minimum wage + the result of the local negotiation.

Paychecks

Each employee working for a company covered by a collective agreement must receive a paycheck at every payroll. The paycheck must include information such as:

hourly pay
working hours
overtime pay
sick pay
holiday pay
pensions pay
compensation for loss of earnings on public holidays (SH)

If you see “on-account amount” on your paycheck, you must check whether it corresponds to the amount that has actually been paid out to you in cash.

Working hours

Working hours are normally fixed at 37 hours per week and must lie between 06:00 and 18:00 from Monday till Friday. Other working hours must be agreed in writing between employee and employer. Remember to keep a record of how many hours and where you work. Write it down in a calendar or keep a copy of the weekly timesheet that you submit to your employer.

Overtime and weekend work

If you work more than 37 hours a week or on the weekend, you are normally entitled to extra payment in addition to your hourly pay. Typically, you get +50 % payment for the first three hours of overtime and +100 % for the rest. Remember that you must receive payment for ALL the hours you work. If you have made special working agreements with your employer with more than 37 hours a week, it is always a good idea to get help from the union to look them through.

Occupational pension

If your employer is a member of an employers’ organisation or is covered by an accession agreement, you are covered by a pension scheme. The total contribution is in most cases 12 % of your total monthly pay, of which you must pay 4 % yourself, while the rest is paid by your employer. Many pension funds offer a healthcare scheme which means that you may have access to free treatments such as massage or physiotherapy. There is also a range of insurances associated with your pension e.g. in case of your death or critical illness. Ask your union about the rules for your company.

Holiday

According to Danish law you are entitled to 25 holidays with allowance every year. The allowance is equivalent to 12.5% of your pay. You will earn 2,08 days per month, and holidays can be held from September 1 until December 31 in the following year. The collective agreements grant you additionally 1 week (the 6. holiday week). You are entitled to 15 consecutive days of holiday (3 weeks) in the period from May 1 until September 30.

Read more about wage and working hours here:
https://workplacedenmark.dk/working-conditions/