Denmark sets new salary floor for foreigners at Rs 61.8 lakh annually
Source: Business Standard
Starting October 1, foreigners working in Denmark will need to earn salaries in line with new Danish standards. Denmark is updating its income thresholds for foreigners applying for residence and work permits, ensuring they meet the new minimum salary levels required for eligibility.
The minimum salary for most foreign workers will increase from DKK 445,000 (around Rs 55.6 lakh) annually to DKK 495,000 (about Rs 61.8 lakh), as per the latest guidelines. This 10 per cent rise aims to ensure that foreign workers are paid wages that align with the country’s standards.
What happens if you apply after September 30?
If you’re applying for a residence and work permit after September 30, 2024, your salary will be assessed based on second-quarter income statistics for 2024. However, those who applied between July 1 and September 30, 2024, will be assessed using the first-quarter salary statistics.
Your salary and employment terms must meet Danish standards for your work permit to be granted. “Applicants must receive remuneration that reflects the local standard for the type of employment in Denmark,” the statement says.
Schemes impacted by the changes
The new salary requirements will apply to both first-time applications and extensions under several schemes, including:
Pay Limit Scheme
Supplementary Pay Limit Scheme
Fast Track Scheme
Researcher’s Scheme
Positive List for People with Higher Education
Positive List for Skilled Work
Special Individual Qualifications Scheme
Herdsmen and Farm Managers Scheme
Internship Scheme
Even those applying for sideline work permits or permits as accompanying family members must meet the salary criteria.
Salary must be paid to Danish accounts
For most cases filed after January 1, 2021, salaries must be paid into a Danish bank account. Only liquid, guaranteed payments such as fixed salary, pension contributions, and holiday allowances will be considered when assessing if your salary matches Danish standards.
Staff benefits, such as board and lodging, can be offered by the employer but won’t count towards your salary in this assessment. In addition, uncertain income like commissions and bonuses typically won’t be included when calculating your total salary.
How does SIRI assess if your salary meets Danish standards?
Styrelsen for International Rekruttering og Integration (SIRI), the Danish Agency for International Recruitment and Integration, generally considers a salary sufficient if:
1. The employer is part of a collective agreement through an employers’ association membership.
2. The employment contract explicitly states it is covered by a collective agreement in the relevant sector.
For 2024, SIRI will assume that your salary is in line with Danish standards if it’s at least DKK 71,020.83 per month. If not, SIRI will evaluate your salary using the Confederation of Danish Employers’ income statistics as a guide, ensuring it meets the minimum required level for your job function and experience.
Why Denmark is raising salary thresholds
This adjustment comes as Denmark grapples with a skilled labour shortage across various sectors, including technology, healthcare, and construction. By raising the salary thresholds, the government aims to not only attract skilled foreign talent but also ensure that local workers benefit from the new employment opportunities.
Indians in Denmark: Growing workforce
India has seen a significant rise in its workforce in Denmark over the past 15 years. A report by The Copenhagen Post reveals that the number of Indian employees in the country has increased sevenfold during this period. Many Indian workers in Denmark are highly educated and contribute to key sectors like technology, healthcare and construction, helping to alleviate Denmark’s shortage of skilled labour.
As of 2024, an estimated 21,300 Indians are living and working in Denmark, according to a Statistics Denmark analysis, with the number expected to grow as demand for skilled professionals continues.
First Published: Sep 26 2024 | 10:34 AM IST
