Danish Bank Account Required for Positive List, Among Other Minimum Salary and Work Requirement Changes
January 5, 2021
The situation
Details of the new policies, which will take effect January 1, 2021, include the following:
New policy | Details | Impact |
New minimum salary amount |
The new minimum salary level in Denmark has increased 2% to DKK 445,000 per year, up from DKK 436,000. |
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Danish bank account requirement |
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Dependent work rights |
Non-EU dependents starting employment in Denmark who will be working for the same employer as the principal, or a closely related employer, will be required to obtain a principal employment permit before starting work. |
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Background
The move to a local bank account requirement for salary payments has been on the government agenda ever since this was implemented for the Pay Limit Scheme and Fast Track Scheme in 2017. The government’s intention with this rule is to make it easier for authorities to track payments and taxes in Danish bank accounts. This increase in compliance is in line with the general move in EU countries to increase compliance for foreign nationals to ensure that employers are meeting fair payment standards and to increase transparency in the employment of foreign workers.
Looking ahead
Major immigration changes in Denmark are not expected this year as new immigration rules were implemented for the start of the new year. Entry, quarantine and health rules will be amended as the epidemiological situation continues to change. Check Fragomen’s dedicated COVID-19 website for more information.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].