Denmark has announced new regulations for foreign workers applying for work and residence permits, set to take effect from September 1st, 2024.
These changes, as relayed by TravelBiz, are ‘designed to align salary declarations with local Danish standards and establish fair wages for international employees.’
Meaning that salaries offered to foreign workers should match what is typical for similar jobs in Denmark.
By aligning salary declarations with local standards, the goal is to ensure that international employees receive fair compensation, reflecting the wages paid to local workers in comparable positions.
The updates, as indicated, will impact the application process and eligibility criteria for work permits in the country.
Higher Salary Requirement Starting October 2024
As stated, starting October 1st, 2024, Denmark will raise the salary requirements for most foreign workers.
Applicants for work permits, according to reports, must earn at least 10% more than the current salary threshold to qualify. This means that come October, Denmark will increase the minimum salary that foreign workers must earn to be eligible for work permits.
Specifically, applicants will need to earn at least 10% more than the existing salary level. This change aims to ensure that foreign workers receive compensation that is more aligned with local wage standards.
Effects 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 wages offered to foreign workers.
Reports confirm that applications submitted after September 30th, 2024, will be assessed using second quarter 2024 statistics.
Employers must provide a detailed explanation if a foreign worker’s salary does not meet the Danish standards. This requirement, as stated, aims to uphold fair employment practices across the board.
Schemes Affected by the New Salary Requirement
TravelBiz provides that the updated salary threshold will apply to several work and residence permit 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
These changes impact both new applications and extensions for existing permits.
What To Know
According to reports, SIRI will assess whether an applicant’s salary aligns with Danish standards by considering only liquid funds.
This includes fixed salaries, pension contributions, and holiday allowances. Additional benefits such as board and lodging will not factor into this assessment.
In order to meet Danish standards, SIRI requires that the applicant’s employer is part of a collective agreement. The employment contract must clearly indicate coverage by this agreement.
‘The monthly salary for 2024 is set at DKK 71,020.83,’ TravelBiz reports.
Revised Salary Declaration Rules
In addition to the salary threshold changes, Denmark will also require all salary declarations for foreign workers to be submitted in Danish kroner (DKK) starting September 1st, 2024. This new rule ensures that compensation aligns with local economic standards and promotes transparency.
Denmark will also require all salary declarations for foreign workers to be submitted in Danish kroner (DKK) starting September, alongside the salary threshold changes.
This rule makes sure compensation matches local standards and improves clarity.
Key changes include:
1. Salary in Danish Kroner: All employment contracts must list salaries in Danish kroner (DKK), meaning employers must specify the salary amount using this currency.
2. No Foreign Currency Declarations: The Danish Agency for International Recruitment and Integration (SIRI) will not accept salary amounts stated in any foreign currency. If an employer initially states the salary in another currency, they must convert it to DKK and provide an additional document showing this conversion.
3. Application Scope: These rules apply to different work permit programs, including the Pay Limit Scheme and the Fast Track Scheme, meaning all applicants under these programs must follow these new salary declaration requirements.
Those planning to apply for a Danish work permit after October 1st, 2024, are advised to familiarize themselves with the updated salary requirements and ensure compliance with the new regulations. For understanding these changes is essential for navigating the application process successfully.