GDPR and payroll administration

You can't avoid the General Data Protection Regulation (GDPR) if you are responsible for payroll processing in your organisation. Do you have a clear understanding of the rules or are you still unsure?

When you're dealing with your payroll, there are some areas you need to focus on:

  • Employee master data
  • Suppliers
  • Inform your employees about how their data is processed (preferably in an understandable way)

Employee master data

You need to be able to document what data you have on your employees and what data is necessary. In addition, you need to document how you store this data and for how long. Remember that all employee data, including sensitive personal data, must be mapped. This also applies if there is a GPS in the cars that indicates where the employee has been. All of this must be documented so that you have a full overview of all data on your employees.


If you have suppliers that process personal data, you as a company must have a data processor in your agreement with them. This is, for example, the payroll system you use if you have contact with the suppliers yourself.

Inform your employees in an understandable way

GDPR can sound confusing to many with all the "fancy" words and terms used. That's why it's important to explain to employees how GDPR applies to your organisation and how you collect, process and store employee data. This shouldn't be explained in legalese, but in a comprehensible language that employees can understand and why you're doing what you're doing to fulfil GDPR requirements. Part of the work is being able to explain to your employees how you have collected, processed and stored data on them. We recommend that you prepare a standard letter that can be handed out to all employees, stating what data the company processes and for what purpose.

Do you have more questions about GDPR and payroll administrationIf you have any questions, you can let us contact you using the form below. As a customer of Dansk Løn Service, part of our service is that we always stay up to date on the rules within payroll and personnel administration.

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