Minimum Salary Level Increased

The situation

Effective January 1, 2019, the minimum annual salary for foreign workers in Denmark under the Pay Limit Scheme has increased to DKK 426,985.06 (DKK 35,583 / USD 5,431 per month), up 2.2 percent from last year. The increase also affects Fast Track Scheme applications using the Pay Limit Scheme track. Employers of foreign workers should budget for small increase in the salary threshold.  

A closer look

• Existing employees. The changes do not affect current permit holders.
• Initial applications. Employers of foreign nationals seeking to obtain a Pay Limit Scheme or Fast Track – Pay Limit Scheme route permit on or after January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
• Pending applications. The changes do not affect pending applications.
• Renewal applications: The changes do not affect renewal applications. Renewal applications can be filed based on the salary used in the previous application.

 

Reminders on other requirements

• Danish bank account. As before, the salary must be paid into a Danish bank account.
• Benefits and allowances. As before, benefits and allowances generally cannot be included in the minimum salary calculation. Only basic salary, paid holiday allowance and payments to the labor market pension scheme can be included in the minimum salary calculation.
• Currency. As before, employers are required to guarantee the salary in DKK regardless of payroll location and/or exchange rate fluctuations.
• Payment in line with employment contract or assignment letter. As before, salary payments must be in conformity with the salary details mentioned in the employment contract or assignment letter.

 

Background

Denmark also increased the minimum annual salary by 2.2 percent in 2017 and 2018.

Looking ahead

Croatia, Israel, Latvia and Slovenia are expected to announce new salary thresholds in the coming weeks.

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].