Pay Limit Scheme Requirements Reduced in Denmark

Due to a labor shortage in Denmark, salaries at or above 375,000 kroner per year will qualify for the Pay Limit scheme. That represents a 16 percent decrease from the current pay limit of 448,000 kroner annually. This new rule will go into effect on December 1st, 2022, and exist on a trial basis for the next three years.

Denmark grants work permits through the Pay Limit Scheme to foreigners who are offered high-paying jobs. There’s no education requirement and the scheme applies to all industries, as long as the annual salary requirement is met.

Finance Minister Nicolai Wammen stated, “The Danish economy is strong, but we are currently experiencing rising prices and a shortage of labor in Denmark. At the same time, we have set one of the world’s most ambitious climate goals. In that situation, it is responsible economic policy that for a period we take the pressure off the labor market with the help of foreign labor – as long as it happens on Danish pay and employment conditions. ”

More can be read about the agreement on the Financial Ministry’s website.