New Income Requirement Introduced For Foreigners Applying For Work Permits In Denmark

[editor]

Denmark is set to implement a fresh income requirement effective from January 1, 2024, for foreign individuals seeking residence and work permits in the country.

The Danish Agency for International Recruitment and Integration (SIRI) has unveiled this upcoming change, stipulating that in order to secure a residence and work permit, foreign applicants must align their salary and employment terms with Danish standards. This means that individuals arriving in Denmark for work-related purposes, who subsequently apply for a residence and work permit, must receive a wage that adheres to the country's prescribed standards.

To qualify for a residence and work permit, the salary and employment conditions of applicants must mirror the benchmarks set by Denmark for their respective type of employment. SIRI relies on income data supplied by the Confederation of Danish Employers (DA) to assess whether the offered salary meets Denmark's standards when processing residence and work permit applications.

Starting on January 1, 2024, SIRI emphasizes that applications submitted after December 31, 2023, will be subject to evaluation based on the new requirements. Conversely, applications submitted between October 1 and December 31, 2023, will be evaluated according to the previous criteria.

Under the existing requirement, foreign individuals arriving in Denmark for work purposes and applying for a residence and work permit must earn a minimum of €9,095 (DKK 67,812.50) per month. Additionally, the foreign worker's employment must be covered by a collective agreement within the relevant employment sector.

This income requirement applies to foreign individuals applying for residence and work permits under various schemes, including the Pay Limit Scheme, Fast Track Scheme, Researchers Scheme, Positive List for People with a Higher Education, Positive List for Skilled Work, Special Individual Qualifications Scheme, Herdsmen and Farm Managers Scheme, Internship Scheme, and Employment for Adaptation and Training Purposes Scheme.

In cases where SIRI determines that an applicant's salary falls short of Danish standards, the authority will seek input from the employer before rendering a decision on the application.

Denmark, like several other European Union countries, is grappling with a labor shortage, particularly in need of highly educated workers to address its workforce demands.

Here's a breakdown of the pros and cons of Denmark's new income requirement for foreigners applying for work permits:

Pros:

1. Ensures Fair Wages: The requirement ensures that foreign workers are paid in alignment with Danish standards, preventing the exploitation of workers through underpayment.
2. Supports Local Economy: By setting a minimum income requirement, the country aims to ensure that foreign workers contribute to the local economy and maintain a certain standard of living, potentially reducing the strain on social services.
3. Addressing Labor Shortage: Denmark, like many European countries, faces a shortage of skilled labor. By attracting highly educated workers with fair wages, the country can fill gaps in its workforce, aiding economic growth.
4. Clarity in Application Process: Establishing specific income benchmarks provides clarity for both applicants and employers regarding the expectations for obtaining work permits, streamlining the application process.

Cons:

1. Potential Barriers for Low-Income Workers: The new income requirement might make it challenging for lower-income individuals to secure work permits in Denmark, limiting opportunities for those who cannot meet the prescribed salary standards.
2. Impact on Small Businesses: Smaller companies or industries with lower average wages might struggle to meet the income threshold, potentially hindering their ability to hire foreign workers, and impacting their growth.
3. Competitive Disadvantage: It could potentially put Denmark at a disadvantage compared to countries with lower income requirements, making it less competitive in attracting certain types of talent.
4. Dependency on a Single Evaluation Metric: Relying solely on income data provided by the Confederation of Danish Employers might not accurately reflect all industries or regional variations in wages, potentially causing disparities in evaluation.

Balancing the need to attract skilled workers by ensuring fair wages and protecting local job markets remains a challenge. The policy aims to strike this balance, but its effectiveness will depend on how it's implemented and its impacts on different sectors and income brackets.

 

[leonard_shelby]

Wait, so Denmark is increasing the income requirement for foreigners? I feel like we’ve talked about this already, but I can’t remember the specifics. Does this mean it’ll be harder for people to move there for work?

 

[ellie.quinn]

YES, IT DOES!! Starting from January 2024, anyone applying for a work permit in Denmark has to meet the new salary requirements!! It’s all about making sure foreign workers are paid fairly and according to Danish standards!!

 

[lucasbravo]

That’s wild, but I get where they're coming from. It makes sense to align foreign workers' wages with local standards. It’s fairer for everyone, right? Especially with labor shortages, they need skilled people, but at the same time, can’t have companies undercutting wages.

 

[maria_gonzalez]

This reminds me of when my cousin tried to get a work permit in Denmark last year. She was offered a job, but the pay was below the required minimum, so she couldn’t get the permit. She had to go back and renegotiate her salary. It was a stressful process, but eventually, she got it sorted!

 

[nickdev]

Do you think this will affect smaller businesses? What if they can’t afford to meet the new salary thresholds for foreign workers? Won’t it make it harder for them to hire people?

 

[zara_k]

Absolutely. This is where the policy could backfire a bit. Smaller companies may find it difficult to meet the new income requirement, which could limit their ability to hire skilled workers from abroad. In the long run, that could hurt Denmark’s economy by stifling growth in certain sectors.

 

[jeremy_k]

I think it’s going to hurt more than help. If Denmark’s aim is to attract talent, they’re going to face stiff competition from other countries that don’t have such high salary requirements. They could end up driving skilled workers to places like Germany or the Netherlands, where the rules aren’t as strict.

 

[tina_marie]

“The only way to do great work is to love what you do.” Denmark is trying to make sure foreign workers can love what they do by offering fair wages and good working conditions. It may be challenging for some businesses, but in the long run, it’s about creating a more equitable environment for everyone.

 

[mghatiya]

I disagree with most of you here. The income requirement is a necessary evil. Without it, companies could exploit workers, paying them less than what’s fair. It’s a good move by Denmark, even if it means some small businesses will struggle. They’ll just have to adapt or find local talent.

 

[samnichols]

This reminds me of the time I was researching various work permit systems in the EU. It’s interesting to see Denmark implementing this income requirement, especially since they’ve been trying to address the labor shortage. But the complexity of these requirements always adds another layer of challenge for the applicants. It’ll be fascinating to see how this unfolds, particularly in sectors like agriculture and hospitality, which might not be able to meet those higher salary standards.