Denmark: New Routes and Expanded Eligibility for Immigration Pathways Implemented

April 5, 2023

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Country / Territory

At a Glance

  • On April 1, 2023, the Danish Agency for International Recruitment and Integration implemented amendments to the Danish Aliens Act.
  • Changes to the law include a new Supplementary Pay Limit Scheme; relaxed rules for employers related to the Fast Track scheme; a longer validity period for automatic jobseeker permits for third-country nationals with a Danish degree; new rules regarding the Positive List; and expanded eligibility for the Start-up Denmark scheme.
  • SIRI has also introduced a new methodology to calculate incomes that will be more transparent.
  • The amendments are intended to increase employment and fill labor gaps in Denmark, while simultaneously protecting the local labor market.

The situation

On April 1, 2023, the Danish Agency for International Recruitment and Integration (SIRI) implemented amendments to the Danish Aliens Act.

Details of the amendments are as follows:

Change Details Impact
New pathway - Supplementary Pay Limit Scheme
  • As expected, a new Pay Limit Scheme was introduced for highly-skilled foreign nationals who will earn at least DKK 375,000 paid into a Danish bank account and who are seeking to work and reside in Denmark for up to four years. The new minimum salary level is the lower than that under other pay limit scheme in Denmark.
  • The new Pay Limit Scheme will require employers to show that the job has been posted on Jobnet and the EURES-portal for at least two weeks prior to submission, which is not required under the regular pay limit scheme.

 
    • Foreign nationals will not need to earn as high of a salary to qualify for the Pay Limit scheme.
    • However, the government has instilled extra labor market protections in the new scheme since the job must first be posted to Jobnet and the EURES-portal and the pay limit scheme could potentially be dissolved.
    • Additionally, if the gross unemployment rate in Denmark exceeds 3.75% or if more than 15,000 Pay Limit Scheme permits are issued, SIRI may dissolve the scheme, which would prohibit any new permits from being issued.
Fast-track employment quota rules relaxed

 

Under the new law, companies are only required to have 10 permanent employees to be eligible for the Fast-Track scheme, down from 20 employees.

 

 Smaller companies will be eligible for the Fast-Track scheme which provides benefits including additional permit tracks, salary prorating and faster work start dates, among other benefits.
Longer validity for automatic jobseeker permit for third-country nationals with a Danish degrees
  • The validity period of the jobseeker permit for third-country nationals has been extended from six months to three years.
  • Foreign nationals can apply for this residence permit if they have completed a Danish professional bachelor, bachelor, master or PhD program approved by a state authority.
  • As a result, individuals should only apply for this permit if the validity of their residence permit as a student was shortened due to the expiry date in their passport; they were granted a six-month job seeking period along with their residence permit; or they have completed their educational program in Denmark at the prescribed period of study.

 

 Individuals who have completed their studies in Denmark now have a longer period of time to find a job after graduation.
Positive List for People with a Higher Education Scheme
  • The new law confirms that this list (which confirms shortage occupations in Denmark) will still be updated twice per year but positions will remain valid under the list for at least two years.
  • Though no new positions were added to the list, it is expected that more could be added in the coming months.

 

Those with occupations on the Positive List can work in Denmark for under six months and their employer is exempt from the requirement to pay the foreign national's salary into a Danish bank account.  

 
  • Revised model for income determination for foreign nationals. In addition to the amendments to the above immigration bill, SIRI is now using a revised model to calculate incomes for foreign nationals.  These statistics are used to measure whether the foreign employee’s salary and terms of employment correspond to Danish standards. The new model will use the total monthly salary (excluding compensation for work during holidays, sick pay, and other specific types of compensation) as a benchmark and will consider whether the applicant is offered a compensation arrangement to which they have consented. Through this new model, holiday bonuses will now also be part of the income determination. Moreover, SIRI will now take regional salary differences into consideration in the salary determination and will publish a report with the occupational codes on www.newtodenmark.dk in order to make the application process more transparent. This change is in line with the government’s efforts to make the immigration process more transparent and easier.

Denmark has had higher than usual unemployment rates, which resulted in the new immigration law passed to encourage immigration.

It is likely that there will be additions to the Positive List for People with a Higher Education Scheme in the coming months. We will report on related developments.

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].

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