Legislative Programme 2026/2027 – Implications for Employees and Employers
The Danish Government has published its legislative programme covering proposed bills through summer 2027. Several of the initiatives are expected to have a significant impact on employment and workforce management.
Amendments to the Equal Pay Act
On 8 October 2026, the Government reintroduced a bill implementing the EU Pay Transparency Directive. The Directive, and the resulting legislation, aim to ensure equal pay for men and women performing work of equal value. The bill was originally introduced in February 2026 but lapsed following the general election in March.
The proposed amendments to the Equal Pay Act will have far-reaching implications for all businesses in Denmark, introducing a wide range of new obligations. These obligations will affect recruitment processes, all existing employees, and companies with at least 50 employees, which will be required to report on pay differences between men and women.
The basis for pay comparisons will be the registration of employees' job functions, which for many organisations is linked to the so-called DISCO codes. If DISCO codes are inaccurate, salary comparisons will likewise be inaccurate.
The proposed legislation is expected to enter into force on 1 March 2027.
Act on Platform Work
This bill will implement the EU Platform Work Directive, with the objective of improving working conditions for platform workers. The proposal is expected to be introduced in February 2027.
Reduced Set-Off of Employment Income Against Certain Benefits
The reduction of benefits due to employment income for recipients of early retirement benefits, flexible retirement benefits, and early pension will be eased, making employment more financially attractive for these individuals.
Experience with the relaxation of similar rules for state pension recipients has been positive. If comparable effects are achieved for the individuals covered by this proposal, employers may find it easier to recruit employees from this group. The bill is expected to be introduced in February 2027.
Increased Penalties Under the Employee Accommodation Act
The proposed legislation will increase fines for violations of the rules governing employee accommodation.
Where an employer provides accommodation for employees, such housing must comply with certain minimum standards under Danish law. For example, no more than two individuals may generally occupy a room smaller than 20 m², and access to toilets, drinking water, and wastewater drainage must be available.
If the proposal is adopted following its introduction in February 2027, breaches of these requirements will be subject to stricter penalties.
New Employment Requirement for Graduate Unemployment Benefits
The Government proposes that newly graduated individuals must have held student employment prior to completing their studies in order to qualify for graduate unemployment benefits.
Under the proposal, graduates must have worked at least four hours per week for 18 of the 24 months preceding completion of their studies. The bill, expected to be introduced in February 2027, may make it easier for employers to recruit students for part-time positions during their studies.
Great Prayer Day to Be Reinstated
A bill will be introduced in February 2027 to reinstate Great Prayer Day as a public holiday from 2030.
It may be assumed that the economic effects previously estimated following the abolition of Great Prayer Day in 2024 will be reversed upon its reintroduction. This includes a projected reduction in employment of approximately 8,500 full-time equivalent positions, a decrease in GDP of DKK 9.4 billion, and the abolition of the 0.45% wage supplement currently paid to salaried employees. On the other hand, Danes will regain an additional public holiday each year.
For employers, the change may make it somewhat more challenging to recruit the workforce required to meet business needs.
Littler Comment
Several of the initiatives included in the legislative programme will have a direct impact on employers’ day-to-day operations.
Most notably, the proposed pay transparency legislation will introduce new requirements for all employers. For example, organisations will need to maintain accurate data regarding employees’ job functions, salary policies for new hires, salary frameworks applicable to all employees, and the underlying data required to provide employees with information about their pay relative to comparable employees. In addition, larger employers will be required to prepare annual gender pay reports.
Littler can assist businesses in preparing for and complying with these new requirements, as well as advising on any questions or disputes that may arise as a result of the new rules.
Littler can also provide advice on several of the other legislative changes. For example, Littler has advised platform companies operating in Denmark on employment and regulatory matters.
You can contact us here.
Disclaimer: The above is not, and cannot replace, legal advice.
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Erik Simonsen
Senior Director
+45 44 14 30 96
