Denmark Salary Declaration Rule Update: New Rules for Work & Residence Permits

Denmark has implemented new guidelines for international employees seeking residency and employment permits. To ensure compliance with regional norms, all wage statements must be made in Danish kroner as of September 1, 2024.

Denmark is going to impose more stringent rules on foreign laborers who want to apply for residency and work permits. To ensure compliance with local standards, all wage disclosures and employment contracts must be in Danish kroner (DKK) as of September 1, 2024.

Updated Salary Declaration Guidelines

Regarding salary reports in foreign currencies, the Danish Agency for International Recruitment and Integration (SIRI) has modified its procedures. It is now necessary for foreign workers to provide proof that their pay meets Danish salary criteria for the particular employment to be granted a residence and work permit.

Main Modifications to the Application Procedure

• Wage in Danish Kroner (DKK): The wage in DKK must be specified in all employment agreements. Applications for both first and renewal must include this.
• Application Scope: The new regulations cover several work schemes, such as the Positive List for Skilled Work, Fast Track Scheme, and Pay Limit Scheme.
• Salary statements made in foreign currencies will no longer be accepted by SIRI. Should the remuneration have been initially expressed in a different currency, an attachment translating it to DKK is required.

Making Certain Danish Standards Are Followed

Foreign workers must make sure their pay and employment conditions match Danish standards to be granted a residence card and work visa. This comprises:

• Full-Time Employment: The majority of work plans call for 37–40 hours of full-time work per week.
• Included Salary Components: Holiday allowances, payments to labor market pension plans, and fixed and guaranteed compensation will all be considered in the salary evaluation.
• Excluded Income: The salary computation will not take into account erratic income sources like commissions or bonuses.
• Pay, vacation time, and notice periods must all be at least as high as Danish requirements for the particular occupation.
• Evaluation in DKK: The salary evaluation process will be carried out in Danish kroner.

Particulars Regarding Extensions

Salary declarations made in foreign currencies will still be accepted for applications to extend work permits and residency permits issued before September 1, 2024. However, the amount will be translated into DKK using the currency rate that Denmark’s central bank, Danmarks National Bank, provides.

New Pay Ceilings Declared

Denmark likewise revised its foreign worker salary caps last month; the changes take effect on July 1, 2024. These new ceilings establish a minimum pay requirement of DKK 71,020.83 for a range of labor schemes, such as:

• Pay Limit Scheme: Sets a minimum wage requirement that employees must either meet or surpass.
• Fast Track Scheme: Consists of several tracks, including the supplementary pay limit track and the pay limit track, all of which require adherence to the most recent salary standards.
• Positive List for Skilled Work: This list enumerates popular careers with wage criteria that vary depending on the type of work.

Final Thoughts

These adjustments demonstrate Denmark’s dedication to making sure that international employees are fairly compensated following regional norms. To prevent delays or application rejections, employers and candidates must abide by these new guidelines. Applicants are advised to review the official guidelines published by the Danish Agency for International Recruitment and Integration for additional information.