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WORK PERMITS

Indians and Romanians among nationalities given most Danish work permits

New data shows that Denmark issued around 51,000 work permits in 2022, with Indians and Romanians among national groups providing the most foreign workers to the Scandinavian country.

Indians and Romanians among nationalities given most Danish work permits
Denmark issued an increased number of work permits to foreign nationals in 2022. Photo by Christin Hume on Unsplash

The data comes from an updated Statistics Denmark analysis reported by SMVDanmark, an interest organisation for small and medium Danish businesses.

The number – 51,000 – is the highest reported since SMVDanmark began tracking the figures in 2014. It is 11,000 more than in 2021.

The largest proportion of foreign labour came from Romania, India and Poland. That was also the case last year.

The general increase in recruitment from abroad is primarily due a lack of labour experienced by Danish businesses in 2022, according to SMVDanmark’s political consultant Signe Bøgevald Hansen.

“Unemployment was low and it was therefore not possible to recruit from within Denmark. This was therefore done outside of Denmark’s borders instead,” she said.

Non-EU nationals saw the number of work permits issued to them increased by 46 percent compared to the previous year.

Signe Bøgevald Hansen said she saw evidence of such a strong trend as good news.

“In 2022, residency permits were given to 24,570 persons from outside of the EU. They came to strengthen Danish businesses and pay Danish tax,” she said.

“That is fantastic news for small and medium-sized businesses who certainly need the labour,” she said.

Low unemployment levels have resulted in business organisations, notably the Confederation of Danish Industry, repeatedly calling for more recruitment from abroad to be allowed.

Last year saw a majority in parliament pledge to support a proposal to reduce the Pay Limit scheme, an arrangement by which work permits are granted to non-EU nationals. However, the proposal was never passed into law because Prime Minister Mette Frederiksen called an election before it was voted on in parliament.

However, a change to the Pay Limit scheme similar to the one agreed last year is among adjustments to work permit rules which could be made by the new government with a similar objective of helping businesses to address labour needs by recruiting foreign workers.

READ ALSO: What do we know about Denmark’s plans to relax work permit rules?

Business organisations have previously called for further-reaching measures amid the ongoing labour shortage.

Hansen said she saw potential in the government initiatives.

“At SMV Denmark we are also pleased that the government on Tuesday will process a proposal to reduce the Pay Limit scheme permanently,” she said.

The Pay Limit scheme allows work permits to be granted to applicants who have been offered a wage above a set amount by a Danish employer.

Under the existing rules that minimum wage is around 448,000 kroner per year. The proposal could reduce it to 375,000 kroner per year.

Editor’s note: a previous version of this article inaccurately stated that the Pay Limit had already been reduced on a temporary basis from December 1st 2022, as was the plan in a June 2022 political agreement. This is not the case because the general election prevented the agreement from being passed into law. The error has been corrected.

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WORK PERMITS

Denmark updates salary levels for work permits in October

Denmark is updating the wage levels used to assess work permit applications from October 1st, meaning most applicants will have to have salaries more than 10 percent higher to qualify.

Denmark updates salary levels for work permits in October

New wage statistics will be used from October 1st for assessment of work permit applications by Danish authorities, with the lower quartile of salaries used in assessments rising by an average of 13 percent from the previous wage statistics which applied from June 2024. 

When assessing applications for work permits under programmes including the Pay Limit Scheme, the Fast Track Scheme and the Positive List, the Danish Agency for International Recruitment and Integration (SIRI), which is responsible for processing work permits, uses income statistics to decide whether a job that has been offered is within the Danish standards for salary.

The statistics, which are provided by the Confederation of Danish Employers (Dansk Arbejdsgiverforening, DA) will be updated on October 1st, SIRI said in a statement earlier this week.

The new income statistics contains information from second quarter of 2024. SIRI expects quarterly updates to the income statistics in future, with the next update to take effect from January 1st, 2025, it said in the statement.

If you apply for a residence and work permit after 30 September 2024, your application will be assessed based on the salary statistics for the 2nd quarter of 2024. If you applied between 1 July and 30 September 2024, your application will be assessed based on the salary statistics for the first quarter of 2024.

Danish work permit rules require salary and other employment conditions offered to the foreign employee to be equivalent to those on the Danish labour market. This applies for first-time applications as well as for extensions.

READ ALSO: Work permits: What is Denmark’s ‘formodnings’ rule and how does it affect applications?

For example, the Pay Limit scheme allows work permits to be granted to applicants who have been offered a salary by a Danish employer which is at or above the government-set minimum amount.

The minimum salary was reduced from 448,000 kroner per year to 375,000 kroner per year in a rule change in 2023, but the salary offered may also be higher than this.

However, when assessing applications, SIRI must also assess whether the salary offered is “realistic” for the role being offered, to comply with rules intended to guard against abuse of the work permit system.

According to information provided on SIRI’s website, the agency will normally deem the salary to be within normal Danish standards if the employer, or the employment contract, is covered by a collective bargaining agreement.

In other cases, it may more closely assess the salary that has been offered.

READ ALSO: 'It’s really hard to live here in Denmark without working'

If SIRI finds that the salary does not appear to be at a usual level for the given role, it may ask the employer about the salary based on DA's statistics.

It may also ask another body, the Regional Labour Market Councils (De Regionale Arbejdsmarkedsråd) for a second opinion.

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