September 26th, 2024 at 10:53 am

Denmark Tightens Work Visa Regulations with Stricter Salary Thresholds | Denmark Work Visa

With effect from September 2024, Denmark has implemented new rules for international employees seeking residency and work permits. Increased wage thresholds, required pay declarations in Danish kroner, and the elimination of foreign currency declarations are some of these developments. Keep abreast of the changes and how they affect applications for work visas.

Denmark, one of the best places in Europe to balance work and life, has announced new rules for foreign employees seeking residency and work permits. These changes will be substantial and go into effect on September 1, 2024. With these adjustments, salary declarations will be in line with Danish local regulations, guaranteeing international workers a fair remuneration. Everything you require to know about these changes is provided here.

Increased Salary Threshold from October 2024

Denmark will similarly increase the pay standards for the majority of international workers starting on October 1, 2024. The new regulations stipulate that to be eligible, applicants seeking work permits must make at least 10% more money than the prior cutoff.

Effect on Applications for Work Permits

According to information provided by the Danish Agency for International Recruitment and Integration (SIRI), the new pay level will be used to determine whether the wages paid to foreign employees in Denmark are commensurate with local standards. Applications received after September 30, 2024, will be evaluated using data from the second quarter of 2024.

Plans impacted by the newly mandated salary threshold

Under several programs, including the following, the increased wage threshold will apply to applications for new and extended work and residency permits.

• Positive List for Skilled Work
• Supplementary Pay Limit Scheme
• Positive List for People with Higher Education
• Pay Limit Scheme
• Researcher’s Scheme
• Special Individual Qualifications Scheme
• Internship Scheme
• Herdsmen and Farm Managers Scheme
• Fast Track Scheme

Employer Responsibility

If a foreign worker’s wage does not satisfy Danish standards, the employer must offer a thorough explanation to the authorities before a judgment is made on the worker’s residence permit application.

Evaluating Pay Compliance

Your pay only counts if it is liquid, according to Danish norms. This includes holiday allowances, contributions to labor market pension plans, and fixed and guaranteed salaries.

While some employers may provide extra advantages like room and board, these cannot be taken into account when assessing whether your pay is in line with Danish standards. Furthermore, erratic income sources like commissions or bonuses typically do not factor into the computation of your pay.

Requirements for Pay Compliance

If these requirements are satisfied, the Danish Agency for International Recruitment and Integration (SIRI) generally considers that your remuneration satisfies Danish standards.

• If your employer belongs to an employers’ association, they are covered by a collective agreement.
• A pertinent collective agreement that applies to your work should be specifically included in your employment contract.
• At least DKK 71,020.83 is your monthly wage (2024 level).

SIRI typically doesn’t carry out additional salary reviews if these requirements are met. If not, SIRI will use income data from The Confederation of Danish Employers (DA) as a guide to determine if the offered pay complies with Danish norms.

In the income data for your region, the salary must be at least the lower quartile level for the job function (designated by a six-digit DISCO code) and similar years of work experience.

Extra Modifications: Updated Compensation Declaration Guidelines

Apart from the aforementioned adjustments, Denmark has declared that as of September 1, all salary statements submitted by foreign workers seeking residence and work permits must be made in Danish kroner (DKK). This modification guarantees that wages for foreign workers correspond with regional economic norms, encouraging increased openness and equity in remuneration.

Key Changes to the Application Process

• Pay in Danish Kroner (DKK): The wage must be expressly stated in DKK in all employment contracts. This holds for applications for new work permits and residency permits as well as extensions.
• Absence of Foreign Currency Declarations: Salary disclosures made in foreign currency will no longer be accepted by the Danish Agency for International Recruitment and Integration (SIRI). Employers are required to submit an addendum translating a salary that was originally specified in a different currency to DKK.
• Application Range: The Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work are only a few of the programs that are subject to these regulations.

Conclusion

Denmark has been working hard to make the process fair, competitive, and transparent for foreign workers, and these latest improvements are a reflection of that. You must educate yourself about the increased pay requirements and make sure your employment contract complies with the new standards if you intend to apply for a Danish work visa after October 1, 2024.