Employer of Record Guide in Greenland
Expanding your team to Greenland opens doors to unique Arctic talent, but navigating the Nordic employment landscape requires local expertise. Our comprehensive guide helps you hire compliantly while respecting Greenland's distinctive collective bargaining culture and bilingual workplace requirements.
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Key stats and facts
Greenland's economy centers around key hubs like Nuuk and Sisimiut, with growing demand for tech professionals and healthcare workers alongside traditional industries. Understanding the local tax structure, currency considerations, and Greenlandic language requirements is essential for successful expansion.
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Your EOR guide in Greenland
From collective bargaining agreements that replace minimum wage laws to unique Nordic leave policies, Greenland's employment framework requires careful navigation. This practical guide covers everything from payroll cycles and tax obligations to onboarding timelines that account for work permit processing.
Minimum Wage
Greenland does not have a statutory minimum wage. Wages are determined through collective bargaining agreements between employers and trade unions. This Nordic approach ensures that compensation reflects industry standards and local economic conditions.
Most sectors have established minimum rates through collective agreements, which vary by:
- Industry type
- Job classification
- Experience level
- Geographic location within Greenland
Payroll Cycle
Common payroll frequencies in Greenland include:
- Monthly: Most common for salaried employees
- Bi-weekly: Often used for hourly workers
- Weekly: Less common, typically for temporary or seasonal work
Employers must ensure consistent payment schedules and comply with collective agreement requirements where applicable.
Individual Income Tax
Note: Research shows discrepancy between sources - please verify current rates
Greenland operates under a municipal tax system with rates varying by location:
- Tax Rate Range: 42-44% depending on municipality
- Tax Residency: Individuals residing in Greenland for 6 months (183 days) or more in a calendar year are considered tax residents
- Withholding: Employers must withhold income tax from employee wages and remit to local tax authorities
Employer Payroll Contributions
Note: Research shows discrepancy - one source indicates 2.1% AMA, another shows 1.1% social security contribution. Please verify current rates
Employers in Greenland are required to make the following contributions:
- AMA (Labour Market Contribution): 2.1% for private sector employers
- Social Security: Contributions vary based on employee classification and collective agreements
Working Hours
The standard working week in Greenland is:
- Standard Hours: 37-40 hours per week
- Daily Limits: Typically 7.5-8 hours per day
- Flexible Arrangements: Many employers offer flexible scheduling within collective agreement parameters
Overtime Pay
Overtime compensation is typically governed by collective bargaining agreements rather than statutory requirements. Common provisions include:
- Overtime Threshold: Hours worked beyond standard weekly limits
- Compensation Rate: Usually 1.5× regular hourly rate
- Alternative Arrangements: Time off in lieu may be offered where permitted by agreements
Bonus Payments
Bonus structures vary by industry and are often outlined in collective agreements. Common types include:
- Performance-based bonuses
- Annual profit-sharing arrangements
- Holiday bonuses (particularly common in December)
Full-Time vs. Part-Time
Employment classifications are typically defined by:
- Full-time: 37-40 hours per week
- Part-time: Fewer than 30 hours per week
- Casual/Temporary: Variable hours based on business needs
Vacation Leave
- Minimum Entitlement: 25 days (5 weeks) of paid annual leave
- Accrual: Leave typically accrues throughout the employment year
- Scheduling: Must be coordinated with employer, with preference for summer months
- Payout: Unused leave must be paid out upon termination
Sick Leave
Sick leave provisions are primarily governed by collective agreements and may include:
- Duration: Varies by agreement and length of service
- Certification: Medical certificates required for extended absences
- Compensation: Often full pay for initial period, with reductions for longer absences
Maternity Leave
- Duration: 15 weeks post-birth + 2 weeks pre-birth (total 17 weeks)
- Compensation: Paid through social security system
- Job Protection: Position must be held during leave period
- Flexibility: Some arrangements allow for extended unpaid leave
Parental Leave
- Paternity Leave: 3 weeks for fathers
- Shared Leave: Additional parental leave may be available for sharing between parents
- Adoption: Similar provisions apply for adoptive parents
Bereavement Leave
Bereavement leave provisions vary by collective agreement but typically include:
- Duration: 3-5 days for immediate family members
- Compensation: Usually paid leave
- Extended Family: Shorter periods may apply for extended family
Personal & Family Leave
Additional leave types may include:
- Emergency Leave: For urgent family matters
- Care Leave: For caring for sick family members
- Study Leave: For continuing education (varies by agreement)
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | 25 days | Yes | Employer |
| Maternity Leave | 17 weeks | Yes | Social Security |
| Paternity Leave | 3 weeks | Yes | Social Security |
| Sick Leave | Varies | Yes (partial) | Employer/Social Security |
| Bereavement | 3-5 days | Yes | Employer |
Termination Types
Termination With Cause:
- Requires serious misconduct or breach of contract
- No notice period required
- Must be documented and justified
Termination Without Cause:
- Standard business termination
- Requires proper notice or payment in lieu
- Must follow collective agreement procedures where applicable
Notice Period Requirements
Notice periods vary by length of service and are typically outlined in collective agreements:
| Length of Employment | Notice Period |
|---|---|
| Less than 6 months | 14 days |
| 6 months - 2 years | 1 month |
| 2-5 years | 2 months |
| 5-8 years | 3 months |
| 8+ years | 4 months |
Note: Specific periods may vary by collective agreement
Severance Pay
Note: Research indicates severance may apply after 12-17 years of service, but details are incomplete. Please verify current requirements
Severance pay requirements depend on:
- Length of service
- Reason for termination
- Collective agreement provisions
- Individual contract terms
Probationary Periods
- Standard Duration: Typically 3-6 months
- Notice Requirements: Shorter notice periods during probation
- Performance Evaluation: Regular assessment during probationary period
Final Pay Requirements
Employers must provide final payment including:
- Outstanding wages
- Accrued vacation pay
- Any applicable severance
- Timeline: Typically within 30 days of termination
Anti-Discrimination & Retaliation Laws
Employees are protected from termination based on:
- Gender, age, race, or religion
- Pregnancy or parental leave
- Union membership or activities
- Filing complaints or grievances
National Holidays
Greenland observes several public holidays, including:
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Epiphany | January 6 |
| Maundy Thursday | Varies (Easter-related) |
| Good Friday | Varies (Easter-related) |
| Easter Monday | Varies (Easter-related) |
| Great Prayer Day | Varies (4th Friday after Easter) |
| Ascension Day | Varies (39 days after Easter) |
| Whit Monday | Varies (50 days after Easter) |
| National Day | June 21 |
| Christmas Eve | December 24 |
| Christmas Day | December 25 |
| Boxing Day | December 26 |
Regional Variations
Some municipalities may observe additional local holidays or cultural celebrations. Employers should verify local requirements in their specific location.
Holiday Pay Rules
- Eligibility: All employees entitled to holiday pay
- Rate: Regular daily wage
- Working on Holidays: Premium pay (typically 2× regular rate) plus substitute day off
Required Documents for Employment
- Employment Contract: Must be in Greenlandic or Danish
- Work Permit: Required for non-EU/EEA citizens
- Tax Registration: CPR number (personal identification)
- Bank Account: For salary payments in Danish Kroner
- Health Insurance: Registration with Greenlandic health system
Language Requirements
- Official Languages: Greenlandic and Danish
- Contract Language: Employment contracts must be available in employee's preferred official language
- Workplace Communication: Many workplaces operate bilingually
Background Checks & References
Background verification may include:
- Criminal Record Check: For certain positions
- Employment Verification: Previous work history
- Educational Credentials: Verification of qualifications
- Professional Licences: Where required by law
Data Protection & Privacy
Greenland follows Danish data protection standards:
- GDPR Compliance: European data protection regulations apply
- Consent Requirements: Employee consent for data collection and processing
- Data Storage: Secure handling of personal information
IP Assignment & Confidentiality
- Work Product: Generally belongs to employer unless otherwise specified
- Confidentiality: Standard clauses protect business information
- Non-Compete: Limited enforceability, must be reasonable in scope
Probation Period Setup
- Duration: Typically 3-6 months
- Performance Reviews: Regular evaluation during probation
- Termination Rights: Easier termination during probationary period
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work permit processing | 2-8 weeks (if required) |
| Contract finalisation | Day 1-3 |
| Tax registration | Day 3-5 |
| Health insurance registration | Day 5-7 |
| Payroll setup | Day 7-10 |
Worker Classification: Employee vs Contractor
Proper classification is essential to avoid legal issues:
- Employees: Work under employer direction, receive benefits, covered by labour standards
- Contractors: Independent service providers, responsible for own taxes and benefits
- Key Factors: Control, integration, economic dependence, tools ownership
Misclassification can result in penalties and back payments for taxes and benefits.
Unionisation & Collective Agreements
Greenland has strong union traditions:
- Union Membership: High rates across most industries
- Collective Bargaining: Determines wages, working conditions, and benefits
- Sector Agreements: Industry-wide standards are common
- Dispute Resolution: Established procedures for workplace conflicts
Cultural Norms & DEI Expectations
Greenlandic workplace culture emphasises:
- Consensus Building: Collaborative decision-making
- Work-Life Balance: Respect for personal time and family obligations
- Cultural Sensitivity: Recognition of Inuit traditions and values
- Environmental Awareness: Sustainability considerations in business practices
Remote Work Considerations
Remote work arrangements must consider:
- Geographic Challenges: Limited internet infrastructure in some areas
- Equipment Provision: Employer responsibility for necessary tools
- Communication: Bilingual support may be required
- Time Zones: Coordination with international teams
What We Handle
Borderless AI manages all aspects of Greenlandic employment:
- Contract Management: Bilingual employment agreements
- Payroll Processing: Danish Krone payments and tax compliance
- Compliance Monitoring: Collective agreement adherence
- Local Representation: On-ground support for employment matters
- Cultural Integration: Guidance on local workplace norms
Built-in benefits packages for Greenland
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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