Denmark Sets New Salary Declaration Rules for Work, Residence Permits

Denmark is set to implement stricter regulations for foreign workers seeking residence and work permits. Starting September 1, 2024, all salary declarations and employment contracts must be in Danish kroner (DKK), ensuring alignment with local standards.

Revised Salary Declaration Rules

The Danish Agency for International Recruitment and Integration (SIRI) has adjusted its practices regarding salary declarations in foreign currency. To obtain a residence and work permit, foreign workers must now demonstrate that their salary aligns with Danish standards for the specific job.

Key Changes to the Application Process

Salary in Danish Kroner: All employment contracts must state the salary in DKK. This is mandatory for both first-time and extension applications.

Application Scope: The new rules apply to various work schemes, including the Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work.

No Foreign Currency Declarations: SIRI will no longer accept salary declarations in foreign currency. If the salary is originally stated in another currency, an addendum converting it to DKK must be attached.

Must Read: Study, Work, and Live in Denmark: New Rules Offer More Flexibility

Ensuring Compliance with Danish Standards

To obtain a residence and work permit, foreign workers must ensure their salary and employment terms meet Danish standards. This includes:

• Full-Time Employment: Most work schemes require full-time employment, typically 37-40 hours per week.
• Included Salary Components: The salary assessment will include fixed and guaranteed pay, payments to labour market pension schemes, and holiday allowances.
• Excluded Income: Uncertain income, such as commissions or bonuses, will not be considered in the salary calculation.
• Salary, Holidays, and Terms of Notice: These must meet or exceed Danish standards for the specific profession.
• Assessment in DKK: Salary assessment will be conducted in Danish kroner.

Also Read: Denmark Updates Positive Lists For Work Permits; Adds 110 New Job Titles

Specific Conditions for Extensions

For applications to extend residence and work permits granted before September 1, 2024, salaries stated in foreign currency will still be accepted.

However, the amount will be converted to DKK based on the exchange rate provided by Danmarks National Bank, Denmark’s central bank.

New Salary Limits Announced

Last month, Denmark also updated salary limits for foreign workers, effective July 1, 2024. These new limits set the minimum salary requirement of at least DKK 71,020.83 for various work schemes, including:

• Pay Limit Scheme: Establishes a minimum salary threshold that workers must meet or exceed.
• Fast Track Scheme: Covers different tracks, such as the pay limit track and supplementary pay limit track, all requiring compliance with the updated salary standards.
• Positive List for Skilled Work: Lists in-demand professions with specific salary requirements based on the job nature.

Final Remarks

These changes reflect Denmark’s commitment to ensuring that foreign workers receive fair compensation aligned with local standards. Employers and applicants must adhere to these new requirements to avoid delays or rejections in the application process.

For further details, applicants are encouraged to consult the Danish Agency for International Recruitment and Integration’s official guidelines.