Authorities announce new salary minimum for Pay Limit route

IMPACT – LOW

What is the change? Authorities have adjusted the minimum salary for foreign nationals working in Denmark under the Pay Limit scheme.

What does the change mean? The new salary minimum will be 408,800 kroner (about US$58,780) per year, up from 408,000 kroner as was initially announced. The new salary minimum will apply to applications submitted on or after Feb. 1.

• Implementation time frame: Feb. 1.
• Visas/permits affected: New work permits under the Pay Limit scheme.
• Who is affected: Employers who sponsor foreign employees under the scheme.
• Business impact: Businesses should budget for the increase if necessary.

Background: Authorities announced a 2017 minimum salary of 408,000 kroner in December, but subsequently acknowledged that they made an error in calculating the salary minimum. While the increase to 408,800 kroner is small (about .2 percent), employers should take note of the change in order to avoid unnecessary delays in the application process.

BAL Analysis: Employers must meet the new threshold for new work permits under the Pay Limit scheme as of Feb. 1. Extensions of existing work permits may continue to use salaries from the initial application.

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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