The Pay Limit Scheme - extension

The Pay Limit Scheme’s minimum amount is adjusted every year in January. As long as you continue with unchanged terms of employment and you receive the salary in accordance with your contract, you can apply for an extension even though your annual income is below the present minimum amount.

You can apply for an extension of your residence and work permit if you are still employed by the same employer. You must also have both worked and received your salary in accordance with your contract for the entire validity period of your latest permit.

If you have had periods where you have not received a full salary and/or if you have not worked in accordance with your contract, your application must provide information and documentation explaining why you have not done so.

Note that the EU working time directive stipulates that over a period of 4 months you must have an average weekly working time of no more than 48 hours. If your employment is covered by a valid collective agreement, this rule may be waived.

As a rule, you are allowed to take an unpaid leave of absence or vacation without pay, within reasonable limits. In order for SIRI to assess whether your leave of absence or vacation is within reasonable limits, we need information and documentation regarding:

• the length of your unpaid leave of absence or vacation

• how often you have taken an unpaid leave of absence or vacation

• the reason why you have taken an unpaid leave of absence or vacation.

If you have been on maternity or paternity  leave, you are allowed to have received maternity/paternity benefits.

In order for us to extend your permit, your salary and terms of employment must correspond to the Danish standards. If we are not sure whether they correspond to the Danish standards, we can ask the Regional Labour Market Councils (RAR) to assess them.

Read SIRI’s page on Danish standards for salary and terms of employment.

If your salary or terms of employment have gotten worse, you must inform SIRI of this.

Please note that by having a permit obtained via the pay limit scheme, the fast-track scheme or the researcher scheme, the nature of your employment is allowed to change within the same company or university, without you having to apply for a new work permit. This applies to changes such as a promotion, a change of workplace or a change of research project.

The Pay Limit Scheme’s minimum amount is absolute. It is a condition that you have received your salary in compliance with the pay limit that your permit is based on for the entire validity period of your latest permit.

The only exception from this condition is if the lower salary is due to parental leave. If you have taken parental leave, you are allowed to receive childcare benefits instead of a salary.

The same exception does not apply to sickness benefits.

When SIRI has to ensure that you have complied with the pay limit that applies to your permit, we calculate the period continuously from the date of your last permit and 12 months onwards.

Example: You received your last residence and work permit on 1 August 2020. You applied for an extension of your permit on 1 August 2023. SIRI calculates 12 months continuously from 1 August 2020, i.e. 1 August 2020 – 31 July 2021, 1 August 2021 – 31 July 2022, etc.

Please note, if you received your first residence and work permit on 1 August 2020 but did not enter the country before 1 September 2020, the 12 months are calculated continuously from 1 September 2020 onwards.

If you have submitted your first application for a residence permit under the pay limit scheme after 1 July 2017, your salary up to and including the pay limit must be paid into a Danish bank account in your name.

If you have submitted your application for a residence permit according to the pay limit scheme after 1 January 2021, your entire salary must be paid into a Danish bank account in your name.

You can only work in the position and in the company that you have been granted a permit to work in.

No significant changes can be made to your employment unless you apply for a new residence and work permit. On the page 'Your situation is changing', you can find examples of employment changes that require a new permit.

Your work permit can expire before your residence permit. This happens if you have been granted a permit to stay in Denmark for a period of time while looking for a new job.

It is important that you do not work during this job seeking period as it is only intended for job seeking in Denmark. However, when you have applied for an extension, you are allowed to continue working.

 A Danish residence and work permit does not allow you to work in other Schengen countries.

If you are offered a new job, you must submit a new application. This also does not apply if you are offered a new position within the same company. 
When you have submitted your application based on the new job, you do not have to wait for your permit before you start working. You can start your new job on the day you submit the new application.

If you wish to take a sideline job, you have to obtain a separate permit. You can read more about sideline employment here.

A residence and work permit allows you to stay in Denmark for the period your permit is valid.

In addition, a permit allows you to stay in the Schengen area for up to 90 days within the past 180 days. However, the permit does not allow you to work in other Schengen countries.

You must not give up your Danish address or stay abroad for more than 6 successive months. A violation will result in the lapse of your permit. This means that you will lose your right to stay in Denmark.

If you need to stay abroad for a longer period of time, i.e. if you are stationed abroad for a period of time by your employer, you can apply for dispensation to prevent your permit from lapsing.

You can read more about permit lapse and dispensation options here.

You must be able to provide for yourself and your family during your stay. You are not allowed to receive benefits under the terms of the Active Social Policy Act.

If you or your family members receive such benefits during your stay, your permit can be revoked – and you will lose the right to stay in Denmark.

If an authority, e.g. a municipality, disburses benefits to foreign nationals, SIRI will be notified.

You can see a list of benefits that you are not allowed to receive here.

With a residence permit in Denmark, you are entitled to free Danish lessons. However, you must have turned 18 years and have your Danish address registered in the Danish National Register.

If you have a residence permit in Denmark based on work, study, etc. you have to pay a deposit before you can start receiving lessons. Be aware that you can lose your deposit if you do not pass the different modules within a specific timeframe.

Your municipality of residence is obliged to offer you Danish lessons and refer you to a language centre. If you have not been offered Danish lessons within a month after registering your address in Denmark, you can contact your municipality.

You will (typically) be taught together with other foreign nationals who have arrived in Denmark recently.

You can be granted a residence and work permit valid for up to 4 years at a time, and after 8 years, up to 5 years at a time – however, the validity cannot exceed the duration of your job contract.

If your employment contract is for a shorter period than 4 years, your residence and work permit will normally be valid for the period of your employment. If you wish to continue working in Denmark after this time, you must apply for an extension of your residence and work permit. In addition, you will automatically be granted a 6 month job seeking permit allowing you to look for a new job in Denmark.

You are not allowed to work during your job seeking period.