Denmark to Set New Salary Rules for Foreign Workers

Denmark is introducing new rules for foreign workers applying for residence and work permits starting on September 1, 2024.

TravelBiz reports that the new rules will require all salary declarations and employment contracts to be in Danish kroner (DKK), Denmark’s official currency.

This change is meant to align foreign workers’ pay with local standards.

The Danish Agency for International Recruitment and Integration (SIRI) has updated its guidelines. From September, foreign workers must show their salaries in DKK to meet Danish employment standards.

This rule will apply to all work contracts, including the Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work.

SIRI stated that they will no longer accept salary declarations in foreign currencies. If a salary is originally in another currency, an additional document converting it to DKK must be attached to the application.

Foreign workers must ensure their salary and employment conditions meet Danish standards to get a residence and work permit. This includes:

1. Full-Time Employment: Most work schemes require full-time work, usually between 37 to 40 hours per week.
2. Included Salary Components: Fixed pay, pension contributions, and holiday allowances will be considered when assessing the salary.
3. Excluded Income: Uncertain income like commissions or bonuses will not be included in the salary calculation.
4. Salary, Holidays, and Notice Period: These must meet Danish standards for the specific job.
5. Assessment in DKK: All salary assessments must be done in Danish kroner.

For workers extending permits granted before the new rules take effect, salaries in foreign currency will still be accepted. In these cases, the conversion will be based on the exchange rate from Denmark’s National Bank.

Additionally, in July 2024, Denmark raised the minimum salary requirement to DKK 71,020.83 for several work schemes, including the Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work.

Employers and applicants should check the guidelines from the Danish Agency for International Recruitment and Integration for more details on how to follow the new rules.