Denmark to introduce new salary rules for foreign workers 

Denmark will introduce new regulations for foreign workers applying for residence and work permits starting September 1, 2024. 

TravelBiz in its recent report revealed that the new requirements mandate that all salary declarations and employment contracts be in Danish kroner (DKK), the official currency of Denmark, to align with local standards 

Further reports unveil that the Danish Agency for International Recruitment and Integration (SIRI) has revised its rules on salary declarations.  

An Insight To The Decision

From the start date, foreign workers must present their salaries in DKK to meet Danish standards for their roles.  

This requirement applies to all employment contracts and various work schemes, including the Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work. 

SIRI, as reported, “will no longer accept salary declarations in foreign currencies. If a salary is originally stated in another currency, an addendum converting it to DKK must be attached” 

To obtain a residence and work permit, foreign workers must ensure their salary and employment terms align with Danish standards. This includes: 

• Full-Time Employment: Most work schemes require full-time employment, generally 37-40 hours per week. 
• Included Salary Components: The salary assessment will cover fixed pay, contributions to pension schemes, and holiday allowances. 
• Excluded Income: Uncertain income such as commissions or bonuses will not be factored into the salary calculation.
•  Salary, Holidays, and Terms of Notice: These must meet Danish standards for the specific profession. 
• Assessment in DKK: Salary assessment will be in Danish kroner. 

The agency supplies that ‘for applications extending permits granted before the new regulations take effect, salaries stated in foreign currency will be accepted, with conversions based on the exchange rate provided by Denmarks National Bank.’ 

What To Know

On a further note, Denmark updated salary limits last month, setting a minimum requirement of DKK 71,020.83 effective July 1, 2024, for various work schemes, including the Pay Limit Scheme, Fast Track Scheme, and Positive List for Skilled Work. 

These changes,  as informed, aim to ensure fair compensation for foreign workers. Therefore, employers and applicants should consult the Danish Agency for International Recruitment and Integration’s guidelines for further details.