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07.06.2017

New salary requirements under the Pay Limit scheme take effect on 1 July

On 2 June 2017 the Danish Parliament passed a bill introducing changes to the Pay Limit scheme. The new rules come into effect on 1 July 2017.

The new rules only apply to applications submitted under the Pay Limit scheme and  under the Fast-track scheme’s Pay Limit track. They also only apply to applications submitted on or after 1 July 2017.

For such applications it is a condition that salary up to and including the minimum amount – currently DKK 408,800 - must be paid to a Danish bank account.

The salary up to and including the minimum amount can only consist of the basic salary, payments to labour market pension schemes (both the part paid by employer and the part paid by the employee) and paid holiday allowance.

Therefore the following salary components cannot count as part of the salary:

  • Paid living and housing expenses
  • Per diems
  • Paid means of transportation, e.g. free use of car to and from work
  • Phone paid by the employer
  • Internet
  • Payments in kind
  • Subscriptions
  • Other services offered to the employee by the employer
The above should not be considered a complete list.

The salary up to and including the minimum amount cannot be paid in cash and cannot be paid into an account abroad. Salary above the pay limit amount can be paid in another way or in a different country and can consist of other salary components.

Applications for extensions will be processed according to the rules in effect when the original residence permit was granted, if the applicant continues to be employed in the same job and on the same terms when applying for the extension.

Read more about the new bill (in Danish only) (new window)

The changes introduced by the new bill have been incorporated into the relevant sections on newtodenmark.dk.



Last update: 6/7/2017
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Published by: The Danish Agency for International Recruitment and Integration