Salary declarations now required for Pay-limit, Fast-track applications

IMPACT – MEDIUM

What is the change? Danish authorities are requiring employers using the Pay-limit and Fast-track schemes to include a sworn declaration on payment of salary when submitting applications.

What does the change mean? Employers using the Pay-limit and Fast-track schemes are required to submit the declarations, which ask them to confirm that employees will be paid according to minimum salary standards and to check a box stating that salaries “up to and including the minimum amount” will be paid into a Danish bank account.

• Implementation time frame: Immediate and ongoing. The change was implemented July 1.  
• Visas/permits affected: New work permit applications under the Pay Limit and Fast-track schemes filed on or after July 1 and extension cases for work permits granted under the new requirements. Extension applications for work permits that were approved under the old rules will not be affected.
• Who is affected: Companies hiring foreign workers under the Pay Limit or Fast-track schemes.
• Impact on processing times: Applications submitted without the declaration may be delayed.
• Business impact: The change adds a new administrative requirement for employers using the Pay-limit and Fast-track schemes.

Background: The gross minimum salary for foreign workers under the Pay Limit or Fast-track schemes is currently 34,067 kroner (about US$5,220) per months (408,800 kroner per year). Under a law that took effect July 1, employer-paid housing, transportation or other employee benefits cannot be counted when calculating the base yearly minimum salary. The minimum gross salary must be paid into a Danish bank account, but any pay above the minimum may be paid into a foreign account. The new forms ask employers to confirm that minimum salary requirements will be met and that pay up to and including the salary minimum will be paid into a Danish account.

BAL Analysis: Employers should be sure to include the declarations when completing first-time applications submitted under the Pay-limit and Fast-track schemes. The declarations are only required in renewal applications for work permits initially granted under the new regulation, not those granted before July 1.

This alert has been provided by the BAL Global Practice group and our network provider located in Denmark. For additional information, please contact your BAL attorney.

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