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Friday, September 27, 2024

Denmark Introduces New Regulations for Overseas Workers

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Denmark will have new rules for foreign workers who want to work and live in the country starting from September 1st, 2024.

These changes, shared by TravelBiz, are made to match foreign workers’ salaries with what local Danish workers earn. The aim is to ensure that foreign workers get fair pay, similar to what locals receive for the same jobs.

So, if you want to work in Denmark, your salary should be like the salaries for similar jobs in Denmark. This change will also affect how you apply for a work permit and the eligibility requirements.

Higher Salary Requirement Starting October 2024

Starting October 1st, 2024, Denmark will increase the minimum salary foreign workers must earn to get a work permit. Applicants must earn at least 10% more than the current salary threshold.

This means if you apply for a work permit after October 1st, you need to show you will earn higher wages. This change ensures that foreign workers get salaries that are closer to what local workers earn.

Effects on Work Permit Applications

The Danish Agency for International Recruitment and Integration (SIRI) will use the new salary threshold to check the wages offered to foreign workers.

Any applications submitted after September 30th, 2024, will be reviewed using second-quarter 2024 statistics. Employers must explain clearly if a foreign worker’s salary does not meet the Danish standards to uphold fair practices.

Schemes Affected by the New Salary Requirement

TravelBiz reports that the new salary rules will apply to various work and residence permit schemes, such as:

  • 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 will impact both new applications and extensions of existing permits.

What To Know

SIRI will only look at liquid funds, such as fixed salaries, pension contributions, and holiday allowances, to check if a salary meets Danish standards. Extra benefits like free housing or food are not considered.

The employer must also be part of a collective agreement, and the employment contract must show this. For 2024, the monthly salary should be DKK 71,020.83, according to TravelBiz.

Revised Salary Declaration Rules

Besides raising the salary threshold, Denmark will also require that all salary declarations for foreign workers be in Danish kroner (DKK) from September 1st, 2024, onwards.

This new rule makes sure the pay fits the local economic standards and is clear.

Key changes include:

1. Salary in Danish Kroner: Salaries in employment contracts must be listed in Danish kroner (DKK). Employers must specify the salary amount using this currency.

2. No Foreign Currency Declarations: SIRI will not accept salaries stated in any foreign currency. If an employer states the salary in another currency, they must convert it to DKK and provide a document showing this conversion.

3. Application Scope: These rules apply to different work permit programs, such as the Pay Limit Scheme and the Fast Track Scheme. All applicants under these programs must follow the new salary declaration requirements.

If you are planning to apply for a Danish work permit after October 1st, 2024, make sure to understand and follow these new salary requirements. Knowing these changes is important for navigating the application process successfully.

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