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WORKING IN DENMARK

Danish coalition party wants ‘overtaking lane’ for hiring internationals

Lars Løkke Rasmussen, leader of coalition partner the Moderate party, says that Denmark’s businesses should be allowed to freely hire international staff, provided they comply with trade union agreements.

Danish coalition party wants 'overtaking lane' for hiring internationals
Moderate party leader Lars Løkke Rasmussen is keen for Denmark to recruit foreign labour. Photo: Emil Nicolai Helms/Ritzau Scanpix

Rasmussen, who has regularly advocated for more skilled foreign professionals on the Danish labour market, said that companies should be able to freely hire from abroad provided they have a collective bargaining agreement (overenskomst) with a trade union and comply with its terms.

The Moderate Party presented 12 proposals on Tuesday all aimed at increasing foreign labour in Denmark.

That includes a proposal to give companies an “overtaking lane” to hire staff from abroad, provided they are covered by a bargaining agreement.

“There are pay limit schemes, positive lists, all sorts of rules that SIRI [the Danish Agency for International Recruitment and Integration, ed.] has to decide whether people live up to,” Rasmussen said, referring to the agency that processes work permit applications.

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“We propose an overtaking lane – a proposal that trumps all of this. That is, if you are an employer who has a collective bargaining agreement and a union-covered business, you should basically be able to bring people in on a wage that complies with the bargaining agreement,” he said.

The plan would have the added effect of providing incentive for companies to sign collective bargaining agreements, he argued.

According to the Moderate leader, who is also the foreign minister, around a quarter of the Danish labour market is not covered by a collective bargaining agreement, a contract signed between trade unions and employer confederations to provide the basis of salary and other working conditions.

The proposal to free up access to foreign labour has not yet been discussed with the other two coalition parties, the Social Democrats and the Liberals,

The three parties in the government would need to agree on the plan before a bill is likely to be tabled.

“The proposal we have should speak directly to a good social democrat because it’s a real tribute to the Danish labour model,” Rasmussen said.

“This is a nudge to the Danish trade union movement – not least at a time when it can be difficult to make trade unions attractive,” he said.

“We [in Denmark, ed.] have a high level of organisation and a low level of conflict. We want to give good reason to maintain that,” he said.

The Moderate leader repeated during the press briefing the government’s new mantra that labour is the new currency, given the shortage that has now impacted the labour market for a number of years.

The number of people on the labour market is expected to decline between now and 2030, and foreign recruitment will lessen the impact of this, the government has said.

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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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