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DENMARK – Minimum Salary Increased for Pay Limit Scheme; and Green Card Abolished

, 06/06/2016

A bill passed on 2 June 2016 increases the minimum salary to qualify for the Pay Limit scheme in Denmark, effective 10 June 2016. In addition, the Green Card scheme has been abolished, also effective 10 June 2016.

Pay Limit Scheme

The minimum salary to qualify for the Pay Limit scheme is now DKK 400,000 per year (DKK 33,333 per month), up from DKK 375,000 per year. It remains possible to apply for an extension of an existing work and residence permit under the Pay Limit scheme with a salary of DKK 375,000, as long as all the employment conditions remain the same.

The Pay Limit scheme is an immigration process reserved for applicants who have an employment contract with or confirmed assignment to a Danish company, which gives them a salary at or above a certain level, and whose employer is not eligible for the Fast-Track Scheme.

The minimum salary requirement will henceforth be reviewed annually.

Green Card Scheme

The bill also abolishes the Green Card Scheme, effective 10 June 2016, until which date it is still possible to apply for a Green Card.

After 10 June 2016 you can continue to apply for an extension of an existing Green Card. Likewise it will still be possible to apply for a residence permit as an accompanying family member of a person holding a Green Card.

The Green Card scheme allowed qualifying applicants (evaluated under a points-based system) to obtain a residence permit for the purpose of seeking work and then working in Denmark.

Action Items

  • Employers should ensure that the salaries of all pending and upcoming (not submitted) applicants for the Pay Limit scheme meet the new minimum salary requirement.