Government releases new salary thresholds

IMPACT – MEDIUM

What is the change? The minimum salary for foreign nationals working in Denmark under the Pay Limit Scheme has increased to 426,985.06 kroner (about US$65,427) per year, or 35,583 kroner per month (exclusive of employer benefits). The government has also announced amendments to the Positive List and released new government fees for the year. Work permit application fees are now €405 for principle applicants and €202 for dependents.

• Implementation time frame: Jan. 1.
• Visas/permits affected: Work permits.
• Who is affected: Employers who sponsor Non-EU/EEA foreign nationals.

Background: Non-EU/EEA foreign nationals requesting work authorization in Denmark must apply for and obtain a work and residence permit prior to entry. Several work and residence permit schemes are available to highly qualified applicants, including the Positive List, the Pay Limit Scheme, the Fast-track Scheme and the Corporate Scheme.

The Pay Limit Scheme is available to foreign nationals who have been offered a highly paid position that meets the gross salary threshold set annually by the Danish Agency of International Recruitment and Integration. The Positive List is published annually by the Danish government and includes professions in the teaching, engineering, medical and financial sectors. Highly qualified foreign nationals who have been offered a position in these professions may have an easier time obtaining work authorization. This year’s Positive List can be found here.

Analysis and Comments: Employers must meet the new threshold for Pay Limit Scheme applications. Extensions of existing work permits may continue to use salaries from the initial application. The new salary minimum will apply to applications submitted on or after Jan. 1 and represents a 2.2-percent increase over the 2018 minimum of 417,793.60 kroner per year.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.