- New Salary Requirements Under Pay Limit Scheme Take Effect July 1
- June 30, 2017
The Danish Parliament has passed a bill introducing changes to the Pay Limit Scheme, which will come into effect on July 1, 2017. All applications submitted on or after July 1, 2017 will be subject to the requirement that applicant’s salary be paid into a Danish bank account and new restrictions on the salary components which can be attributed as part of the applicant’s salary.
Applicants under the Fast Track Scheme to be employed according to the conditions of the Pay Limit Scheme - one of the four tracks available under the Fast Track Scheme - will also be subject to the new requirements.
Payments to Danish Bank Account
Salaries for these applicants, up to and including the minimum amount of DKK 408,800, must be paid into a Danish bank account. Previously, applicants’ salaries could be paid into either foreign or Danish bank accounts. In order to open a Danish bank account, a Danish ID registration is required.
Salary amounts above DKK 408,800 can be paid in another manner or in a different country.
The components of the applicant’s salary, up to and including the minimum amount of DKK 408,800, must be limited to the basic salary, paid holiday allowance and payments to labor market pension schemes. As such, many salary components that were previously allowed may no longer be counted towards the minimum salary amount, such as paid living and housing expenses, per diems, paid means of transportation, and paid phone and internet bills, among others.
Salary amounts above DKK 408,800 can consist of other salary components.
Renewal applications under the Pay Limit Scheme will be processed according to the rules that were in effect when the original Residence Permit was granted, assuming that the applicant continues to be employed in the same job and on the same terms when applying for the extension.
What This Means for Employers and Foreign Nationals
Employers and foreign nationals utilizing the Pay Limit Scheme on or after July 1, 2017 will need to comply with the new requirements.