Denmark, one of the best European countries for a work-life balance, has announced new regulations for foreign workers applying for work and residence permits, with significant updates set to take effect from September 1, 2024.
These changes aim to align salary declarations with local Danish standards and ensure fair wages for international employees. Here’s everything you need to know about these updates.
Increased Salary Threshold from October 2024
From October 1, 2024, Denmark will also raise the salary requirements for most foreign workers. The new rules mandate that applicants for work permits must earn at least 10% more than the previous threshold to qualify.
Impact on Work Permit Applications
The Danish Agency for International Recruitment and Integration (SIRI) has clarified that the new salary threshold will be used to evaluate whether the wages offered to foreign workers in Denmark meet local standards. Applications submitted after September 30, 2024, will be assessed based on the second quarter 2024 statistics.
Also Read: Study, Work, and Live in Denmark: New Rules Offer More Flexibility
Schemes Affected by the New Salary Requirement
The new salary threshold will apply to both new and extended work and residence permit applications under several schemes, including:
- Supplementary Pay Limit Scheme
- Positive List for Skilled Work
- Pay Limit Scheme
- Positive List for People with Higher Education
- Special Individual Qualifications Scheme
- Researcher’s Scheme
- Fast Track Scheme
- Herdsmen and Farm Managers Scheme
- Internship Scheme
Employer Responsibility
If a foreign worker’s salary does not meet Danish standards, the employer must provide a detailed explanation to the authorities before a decision is made on the worker’s residence permit application.
Assessing Salary Compliance
When evaluating if your salary meets Danish standards, only liquid funds are considered. This includes fixed and guaranteed salaries, contributions to labor market pension schemes, and holiday allowances.
Employers may offer additional benefits such as board and lodging, but these cannot be considered when determining if your salary meets Danish standards. Additionally, uncertain income like commissions or bonuses generally do not count toward your salary calculation
Also Read: Work in Denmark without a Permit! New Rules Open Doors for Foreign Workers
Conditions for Salary Compliance
The Danish Agency for International Recruitment and Integration (SIRI) typically assumes that your salary meets Danish standards if these conditions are met:
- Your employer is covered by a collective agreement through a membership in an employers’ association.
- Your employment is covered by a relevant collective agreement, which should be explicitly stated in your employment contract.
- Your salary is at least DKK 71,020.83 per month (2024 level).
If these conditions are satisfied, SIRI usually does not conduct further evaluations of the salary offered.
If not, SIRI will assess whether the offered salary aligns with Danish standards, using income statistics from The Confederation of Danish Employers (DA) as a reference.
The salary must meet at least the lower quartile level for the job function (identified by a six-digit DISCO code) and comparable years of work experience in the income statistics for your region.
Additional Changes: Revised Salary Declaration Rules
In addition to these recent updates, Denmark has announced that all salary declarations for foreign workers applying for residence and work permits must be submitted in Danish kroner (DKK) starting September 1.
This change ensures that wages for international employees align with local economic standards, promoting greater transparency and fairness in compensation.
Key Changes to the Application Process:
1. Salary in Danish Kroner (DKK): All employment contracts must clearly state the salary in DKK. This applies to both new and extension applications for residence and work permits.
2. No Foreign Currency Declarations: The Danish Agency for International Recruitment and Integration (SIRI) will no longer accept salary declarations in foreign currency. If the salary is initially stated in another currency, employers must provide an addendum converting the salary to DKK.
3. Application Scope: These rules apply to various work schemes, including the Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work.
Conclusion
These recent changes reflect Denmark’s ongoing efforts to create a fair, competitive, and transparent process for foreign workers. If you’re planning to apply for a Danish work permit after October 1, 2024, it’s crucial to familiarize yourself with these updated salary requirements and ensure that your employment contract meets the new standards.
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