From April 1, 2023, the ways of applying for work permit has broadened with an expansion of the Pay Limit Scheme and the Positive List for persons with higher education. Further, the length for job seeking period for some graduates has been extended which allows graduates to stay for a longer period to obtain employment and later apply for a work permit according to the Pay Limit Scheme or the Positive List if they find a relevant job. There has also been some minor changes to the Start-up Scheme. Below I have highlighted some of the most significant changes.
Pay Limit Scheme – lowering the minimum salary requirement
As part of the new rules there will be a dual Pay Limit Scheme. The old minimum salary requirement of DKK 465,000 (2023-level) will still be effective with no amendments. The requirement for this Scheme is that the minimum amount must be met and in addition to this the salary and terms of employment must correspond to Danish standards. The salary must be paid into a Danish bank account. The minimum working hour is 30 hours. The job offered cannot be encompassed by a legal labor conflict.
In addition to this scheme a supplementary Pay Limit Scheme will be available. The above-mentioned condition must be met; however, the salary threshold is lowered to DKK 375,000 (2023-level) but only if you meet additional requirements. The employer must declare that the offered position has been advertised on Jobnet and the EURES Portal. However, there will be no check as to whether there were any other relevant candidates for the position instead of the third country national who later applies for a work permit. In addition the scheme is only available if the unemployment rate within the last three months does not exceed 3.75 %. If the gross unemployment on average (seasonal adjusted) exceeds 3.75 % it is not possible to obtain a work permit. In other words, there must be a current shortage of labor in order for a work permit to be granted. For the moment (April 2023) the average unemployment rate for the last three months is 2.77% and the numbers will be available at nyidanmark.dk
Expansion of the Positive List for People with a Higher Education
The Positive List Scheme will open up to a broader range of applicants since the list will be edited with additional job titles and will also be made more predictable since the list will be valid for two years instead of its present ½ years changes.
In addition, the regional labor market councils will also have the opportunity to introduce additional job titles to the list for their respective regional areas.
There are no changes to the conditions for obtaining a residence permit based on the Positive List, including the requirement that salary and employment conditions must correspond to Danish standards, and salary must be paid into a Danish bank account.
Longer job search period for some graduates
If you have completed a bachelor’s degree, master’s degree or PhD degree and the educational program has been approved by a state authority then you can be granted a residence permit for up to three years for job search.
Please notice that you are only allowed to work 20 hours per week and full time in June, July and August. If you find a full time job you need to apply for a work permit during the three years job seeking period. You can obtain a permission for full time employment if you have been granted the 3-year job seeking period and if you have completed an educational programme approved by a state authority.
Adjustment to Start-up Denmark Scheme
The bill makes it possible for already established companies abroad to apply according to the Start-up Denmark Scheme. However, the business idea must still be approved by a panel of experts appointed by the Danish Business Authority and who must consider that you have an innovative business idea that can contribute to economic growth and create new jobs in Denmark.
General comments
The dual Pay Limit Scheme will make it easier for people in low income jobs to obtain a work permit as long as the employment rates are low. Further, the expansion of the job categories on the Positive List will make the scheme more attractive.
The extended period for students to stay for job seeking after graduation will hopefully make it possible for the graduates to find relevant jobs. However, they must be self-supported while staying in Denmark.
Helle Holm Thomsen’s main expertise lies within Immigration law and Family law including International Family law. Helle is a Senior Attorney at CLEMENS Advokatfirma
