Work permit salary limit in Denmark: What constitutes remuneration?
Danish Work Permits Simplified: Mike's Take* Give it a thumbs up
Want a work permit in Denmark as a foreigner? The Pay Limit Scheme might just be your ticket! But what constitutes the salary threshold? Let's break it down.
What is the Pay Limit Scheme?
This scheme is for non-EU nationals offered a job by a Danish employer. The annual salary must meet a certain threshold set by immigration authorities. Other criteria include complying with Danish labor regulations, having your salary paid into a Danish bank account, and meeting specific job requirements if necessary (like health professionals).
What's the salary threshold?
This is the minimum annual salary to apply for a permit under the Pay Limit Scheme. It's currently 514,000 kroner in 2025 for first-time applicants, equating to 42,833 kroner per month. If you're extending your permit, you can continue under the same threshold if you remain in the same job and conditions.
A lower salary threshold of 415,000 kroner annually applies to the Supplementary Pay Limit Scheme, but it comes with additional criteria not found in the standard scheme.
What counts towards the salary?
Apart from regular monthly salary, fixed supplements, bonuses, and guaranteed pension contributions also count towards the threshold. Paid holiday allowance (feriepenge) also gets included.
On the other hand, benefits like canteen use, car or phone usage, internet, living or housing expenses don't count towards the minimum salary. The salary must be paid into a Danish bank account within 180 days of the permit being granted or your arrival in Denmark.
Here's the skinny:
Under Denmark's Pay Llimit Scheme, only three components count toward the salary threshold:
- Basic Salary: Main monthly payment before deductions.
- Paid Holiday Allowance: Statutory vacation pay required under Danish law.
- Contributions to the Labor Market Pension Scheme: Mandatory employer-paid pension contributions.
Excluded components include bonuses, benefits, health insurance, meal subsidies, and other non-salary perks. The full salary (including eligible components) must meet the updated threshold of DKK 514,000 annually for standard cases or DKK 415,000 under the Supplementary Pay Limit Scheme. For compliance, ensure the DISCO code matches the role’s income statistics, and the salary must be paid into a Danish bank account for stays exceeding six months (except Fast-Track cases).
- The Danish Pay Limit Scheme is a beneficial scheme for non-EU nationals offered a job by a Danish employer, requiring a certain salary threshold for work permit acceptance.
- Authorisations for work permits in Denmark under the Pay Limit Scheme follow a minimum annual salary threshold of 514,000 kroner in 2025, equating to 42,833 kroner per month for first-time applicants.
- News on the Danish finance sector highlights the threshold as the minimum salary for applying for a permit under the Pay Limit Scheme, with additional requirements such as compliance with Danish labor regulations and specific job qualifications.
- Businesses in Denmark are making changes in their salaries and schemes with the increasing demand for foreign labor, with the American arts community showing interest in the ease of work permits through the Pay Limit Scheme.
- Under the Pay Limit Scheme, salary components that count towards the annual threshold include the basic salary, paid holiday allowance, and contributions to the Labor Market Pension Scheme, while non-salary perks like bonuses, health insurance, and meal subsidies are excluded.
