Everything one needs to know about the Denmark Pay Limit Scheme

The Denmark Pay limit scheme is a newly formulated law under the government where foreigners can reside and work in the country only if they acquire a high-income job. There are no specifications needed here like the applier's educational profile, professional field or family history etc. However, to live there, one must have a specific yearly income. The pay limit scheme says that a requirement of DKK 445,000 or higher as one's yearly income is compulsory, or else the permit won't be granted.

This condition must also be met even if the applicant takes a vacation without pay. The limited pay scheme amount is readjusted every year. Moreover, it is also necessary that the job is offered to you by a Danish employer as Danish authorization is also needed in some cases. The applicant is also supposed to have a bank account based in Denmark, which is working legally in the country. After the employee starts residing in the nation, he/she should immediately open a bank account within 90 days.

The application is processed by the Danish agency for international recruitment and integration (SIRI). When applying, the applier must be legally present in the country.

Requirements:

Some requirements for your income are: your salary should be in liquid form, payments should be made to pension schemes of the labour market, and your vacations should be paid. The Denmark pay limit scheme has restricted citizens from residing in the country, which has deeply affected Denmark immigration. However, this is the only way they can raise their economy and develop their nation.

Duration:

The duration of one’s stay and work entirely depends on the contract of employment one has in Denmark. The duration is about 4 years if the contract has no end dates and seems to be a permanent agreement. One can also lengthen their permit after the initial four years, even if the scheme pay is altered. However, if the annual income drops below the stipulated pay limit, then he/she is supposed to apply for another work permit to continue their stay.

You can also read: Guide for Foreign teachers in Denmark

The permanent cardholders need to apply for the extension before their permit expires. The scheme lasts for about the length of employment plus six additional months, in case of temporary contracts. Moreover, the residence permit will be shortened if your passport expires. Once the passport is renewed, another application can be made for the extension of the residence permit.

Bottom line

The pay limit scheme also allows one to bring its family along. A residence permit is granted to the family members. The permit can also be granted to one’s partner and kids under 18. This scheme is relatively convenient for citizens, unlike the positive list work permit scheme or the Danish Green Card scheme, as it barely asks for qualifications like education, experience or occupation. The only rule they have is the compulsory annual income limit which needs to be met if one desires to stay in the country.