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Overview
Danish Krone (DK)
CURRENCY
Nuuk
CAPITAL
monthly
PAYROLL FRECUENCY
35
PUBLIC HOLIDAYS
0 to 26.5
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Greenland
Employer
Company Payroll Contributions
0% - 26.5%
Corporate Income Tax
0% - 26.5%
Total Employment Cost
Employee
There is no information about worker payroll contributions.
0% - 0%
Total Employee Cost
Employee Income Tax in Greenland
According to the regional amount set forth by their municipality, Greenland residents may be liable for income tax up to a maximum of 44%.
Payroll Contributions in Greenland
Payroll Cycle
In Greenland, the payroll cycle is monthly or bi-weekly. Companies can hire an Employer of Record in Greenland to obtain HR and payroll outsourcing services.
13th Salary
Like the majority of the member states of the European Union, Greenland has no laws or rules governing 13th salary. Nonetheless, corporations, including those that engage in global employment outsourcing, frequently provide performance bonuses.
Employee Benefit in Greenland
As citizens of every Nordic nation, citizens of Greenland are entitled to free treatment at the point of use, particularly prescription drugs. Users, on the other hand, are responsible for a portion of the cost of devices like prosthetic limbs or eyeglasses. Employers also have a certain level of free dental treatment rights.
Visa and work permit in Greenland
The visa policy of Greenland specifies the requirements for foreign nationals to enter and remain in Greenland.
Nordic nationals are exempt from visa requirements for short stays in the Schengen Area, and people from other nations are also permitted to visit Greenland without a visa. Likewise, no documentation is required for travel across Greenland and the Schengen Zone.
However, since Greenland is not a part of the EU or the Schengen Area, its citizens, with the exception of those from the Nordic region, do not have the freedom to live there. Moreover, Greenland does not accept visas or residency permits that are granted for entry into Schengen nations. Greenland visas can be obtained through the diplomatic missions of the Kingdom of Denmark, and the requirements are the same as those for Schengen visas. Visas from Greenland are not valid for entry into the Schengen Zone.
VAT in Greenland
A Greenlandic company or corporation is not needed to apply for the VAT when working in Greenland because Greenland is not a party to the EU's VAT agreement.
Sales to individuals, businesses, or organizations based in Greenland should be treated as sales made outside of the EU and should be exempt from VAT or eligible for a VAT refund. With a PEO or Employer of Record in Greenland, companies can abide by the local regulations.
Working Hours in Greenland
General
Eight hours a day and 40 hours a week are the maximum amount of time that employees in Greenland should be spent working. With a Professional Employment Organization or an EOR, companies can abide by these regulations.
Overtime
In Greenland, overtime is not generally enforced. Many contracts provide that overtime pay is a part of the wage. The payment of overtime is defined by all collective bargaining agreements. With PEO services, companies can control their overtime payments thanks to their payroll outsourcing services.
Working Week
Monday to Friday.
Employee Termination in Greenland
Termination Process
Regardless of whether the dismissal was fair, employers who fire salaried workers who have been with them continuously for 12 years or longer are nevertheless responsible for paying compensation.
The amount paid depends on how long the job takes. The worker has the right to compensation equal to one month's earnings after 12 years of service. After 15 years of employment, a two-month salary will be awarded as compensation. You are only eligible for up to three months of income if you are 18 years old.
Notice Period
The duration of the notice time for the employer will depend on how long the employee has been continuously working; the lengthier the employment, the greater the notice period.
The statutory notice periods for the employer are as follows:
- If an employee has five months of service, the notice period is one month.
- If an employee has two years and nine months of continuous service, the notice period is three months.
- When a worker has been operating for 5 years and eight months, the notice period is 4 months.
- If an individual has been working for 8 years and 7 months, the notice period is 5 months.
- If the employment time exceeds 8 years, 7 months, the notice period is 6 months. The maximum notice time permitted by the Salaried Workers Act is six months.
No matter the length of work, the employee has the right to end the contract by giving one month's notice prior to the conclusion of the notice period.
Severance Pay
Irrespective of whether the termination was fair, employers are responsible for paying benefits to employees who have been with them for 12 or more years straight. The length of the assignment determines the amount of compensation.
The employee has the right to one month's pay as compensation after 12 years of service. Two months' worth of salary will be provided as compensation after fifteen years of employment. You are eligible for a max of three months' pay after 18 years of service.
Probation Period
In Greenland, there is no comprehensive regulation governing probationary terms. However it is feasible to compromise on a 3-month trial period during which either party may end the contract with a 14-day notice.
Employee Leaves in Greenland
Paid Time Offs
Workers are allowed to take five weeks off every year. With a PEO or an Employer of Record in Greenland companies can honor this leave.
Public Holidays
There are 35 national holidays throughout the year.
Vacation Holidays
There are 11 vacation holidays throughout the year.
Sick Days
If you are unwell and wish to obtain unemployment benefits in Greenland, you must:
- Having children or being at least 18 years old is necessary.
- Get listed in the Greenland national population registration.
- Have spent the last 13 weeks working a minimum of 182 hours as a salaried professional.
13 weeks of unemployment benefits are available to you beginning on the third day of your illness.
Once you have reported as ill, your unemployment compensation will remain continuous if you are currently unemployed or put off and receiving it.
In some circumstances, you may be eligible to get unemployment benefits as soon as you become ill.
This is true whether you are on sick leave because of a work-related accident or if your illness lasts for more than two weeks.
The local authority will decide if you should be provided with another type of help if you frequently get unwell for little periods of time or if your sick leave lasts more than three weeks.
Paternity Leave
You have the right to three weeks of paternity leave as a father during the first 15 weeks of the child's life, or during the initial 19 weeks in the event of twins.
Paternal Leave
There is no information about parental leave in the law.
Other Leave
There is no information about other leave in the law.
Maternity Leave in Greenland
You have the right to maternity leave as a mother starting two weeks before to the anticipated due date and continuing for up to 15 weeks following the birth.
Depending on the terms of your employment contract, you might be able to extend your maternity leave to 19 weeks if you give birth to twins.
You may start your maternity leave sooner than 2 weeks before the due date if your pregnancy is troublesome or if your doctor determines that working would be harmful to your or your child's health.
There are 105 leave throughout the year.