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Guide on Applying for a Danish Work Permit through the Salary Cap Mechanism

Denmark introduces a plan to streamline work permit acquisition for individuals hailing from 16 non-EU countries, under the Pay Limit Scheme.

GUIDE: Applying for a Danish Work Permit via the Pay Limit System: A Step-by-Step Guide
GUIDE: Applying for a Danish Work Permit via the Pay Limit System: A Step-by-Step Guide

Guide on Applying for a Danish Work Permit through the Salary Cap Mechanism

In a significant move aimed at attracting talent from around the world, the Danish government has announced plans to ease work permit rules for nationals of 16 non-EU countries. The proposed changes will reduce the minimum salary threshold for the Pay Limit Scheme from 514,000 kroner per year to 300,000 kroner per year.

Here's a step-by-step guide on how to apply for a work permit with the lower salary threshold if you are from one of the eligible countries: United States, United Kingdom, Singapore, China, Japan, Australia, Canada, India, Brazil, Malaysia, Montenegro, Serbia, North Macedonia, Albania, Ukraine, or Moldova.

1. **Check Eligibility**: Ensure you are a national of one of the 16 specified non-EU countries.

2. **Job Offer**: Secure a job offer from a Danish company that meets the new lower salary threshold of DKK 300,000 per year.

3. **Salary Components**: Only the following salary components can be included in the calculation: salary in the form of liquid assets, including fixed supplements; payments to labour market pension schemes; and paid holiday allowance.

4. **Application Process**: Submit the necessary documents, including the job offer, proof of qualifications, and any other required documents, to the Danish Agency for International Recruitment and Integration (SIRI) or through the Danish Immigration Service's online portal.

5. **Monitor Developments**: Keep track of official announcements and updates regarding the implementation of the new salary threshold. The change may not be effective immediately, so stay informed about when the new rules take effect.

6. **Consult with Authorities**: If you have specific questions or need clarification on the application process, consult with the relevant Danish authorities or an immigration expert.

It's important to note that if you have a pending application, the new rules might not apply retroactively unless specified otherwise by the authorities. The Danish government may adjust these rules further, so it's crucial to stay updated on any changes affecting work permit applications.

Your salary must be paid into a Danish bank account, but you have 180 days to open one after the work permit is granted. The application for the Pay Limit Scheme is online and requires the submission of necessary documentation and a processing fee of 6,055 kroner.

The proposed changes will make the Pay Limit Scheme accessible at lower salaries, but certain supplement types may not be eligible when calculating your salary for the Pay Limit Scheme. The application portal for the Supplementary Pay Limit Scheme can be found online, and processing time is around one month, but can be extended if additional documents are requested.

Several types of income may be considered when Danish authorities calculate what constitutes your salary. However, benefits such as paid canteen, free use of car, etc., cannot be included in the salary calculation. Other requirements include working at least 30 hours a week, having the required Danish authorisations for applicable professions, and the job offer not undercutting Danish industry standards.

The Pay Limit Scheme does not require a specific educational background or qualification in a specific field. Denmark plans to make it easier for people from 16 non-EU countries to obtain a work permit under the Pay Limit Scheme.

Citizens of EU countries are not impacted by these changes, as they are entitled to work in Denmark without a work permit. For more information, visit the Danish Agency for International Recruitment and Integration (SIRI) or the Danish Immigration Service's official websites.

  1. With the new lower salary threshold for the Pay Limit Scheme, some eligible non-EU residents from countries such as the United States, United Kingdom, Singapore, China, Japan, Australia, Canada, India, Brazil, Malaysia, Montenegro, Serbia, North Macedonia, Albania, Ukraine, or Moldova can consider pursuing opportunities in finance, art, or any other business sector in Denmark.
  2. Following the implementation of the new Pay Limit Scheme rules, news outlets and business media are likely to report on the impact this changes may have on Denmark's international art, finance, and business industries.

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