Work Permits
Source: www.newtodenmark.dk
Many foreign nationals are free to live and work in Denmark. However, some are required to hold a residence and work permit. The specific requirements in connection with living and working in Denmark depend on a person’s nationality and qualifications.
If you are a Nordic citizen (Finland, Iceland, Sweden, Norway), you are free to reside, study and work in Denmark. If you are an EU/EEA citizen or Swiss citizen seeking residence in Denmark based on the EU rules on freedom of movement, you can stay for 3 months (6 months if job seeking). If you continue to live in Denmark, you need to apply for a registration certificate ("registreringsbevis"). You do not need a work permit.
If you come from any other country to work, your profession will be a key point when issuing a residence permit. There are different categories; the positive list, the pay limit scheme, the corporate scheme, and the green card scheme.
The Positive List
People who have been offered a job in a profession currently experiencing a shortage of qualified professionals have particularly easy access to the Danish labour market. These professions are listed on the Positive List.
Conditions
Your job must be listed on the Positive List. Furthermore, you must have a written job contract or job offer which specifies salary and employment conditions. Salary and employment conditions must correspond to Danish standards.
Duration
You can be granted a residence and work permit for up to three years with a possibility for extension of up to four years.
Read more about the Positive List
The Pay Limit Scheme
Persons who have been offered a highly paid job have particularly easy access to the Danish labour market. There are no specific requirements with regards to education, field or the specific nature of the job.
Conditions
Your job must have a gross annual pay of no less than DKK 375,000. You must have a written job contract or job offer which specifies salary and employment conditions. Salary and employment conditions must correspond to Danish standards.
Duration
You can be granted a residence and work permit for up to three years with a possibility for extension of up to four years.
Read more about the Pay Limit scheme
The Corporate Scheme
The corporate scheme makes it easier for companies with operations in Denmark to transfer employees with special abilities or qualifications from the company’s foreign departments to Denmark to work on a project or to carry out work that is innovative or educational in nature.
The corporate scheme allows an employee from a company’s foreign department to obtain a corporate residency permit in Denmark. While the permit is valid, the individual is permitted to work in Denmark and abroad.
Conditions
Some conditions concern the company and its status. As such, the company is encouraged to obtain a corporate approval before you apply for a residence permit. The company is not required to do so, but if it does, your application as well as any subsequent applications from other employees can be processed faster.
Corporate Approval
A corporate approval can be granted to a Danish company which is part of an international corporation that has a foreign parent or sister company or subsidiary, or has active departments (divisions, branches or offices) abroad. It is valid for three years with a possibility for extension.
Corporate Residence Permit
You can be granted a corporate residence permit if you are employed in a Danish company's foreign affiliate or department, and you are to work in the Danish company in connection with an innovative, developmental or educational purpose.
Duration
You can be granted a residence and work permit for up to three years, with a possibility for extension.
Read more about the Corporate scheme
The Green Card Scheme
A residence and work permit under the Green Card scheme is issued on the basis of an individual evaluation using a point system designed to assess the likelihood that the applicant will be able to find qualified work in Denmark.
Conditions
You must attain at least 100 points. Points are given for: educational level, language skills, work experience, adaptability, and age.
- Educational Level
Your educational level will be assessed after it has been converted to its Danish equivalent for comparison. This is done as academic degrees vary from country to country, even if they are called by the same name.
- Language Skills
In order to be given points for language skills, you must document that you have passed an exam in either Danish, Swedish, Norwegian, English or German at a level corresponding to at least Danish Language Test, Level 1 (Prøve i Dansk 1).
As an alternative to a language exam, you can document your language skills with a statement from a previous employer attesting that you have used Danish, Swedish, Norwegian, English or German on the job for at least one year.
- Work Experience
Your work experience can be given points according to how many years, within the last five years, you have worked as a researcher or in a field where Denmark is currently experiencing a shortage of qualified professionals. You can be given a maximum of 15 points for your work experience.
- Adaptability
You can be given points for your educational or work related attachment to the EU/EEA (including Denmark) or Switzerland, as this is seen to increase your ability to quickly adapt to the Danish labour market. Points are given for either education or work. You can be given a maximum of 15 points for your adaptability.
- Age
You can be given points based on your age. Points are given as follows:
35-40 years: 10 points
34 years or younger: 15 points
Foreign Documents
Only colour copies of foreign educational documents (such as diplomas, transcripts and other statements issued by educational institutions) are accepted.
Duration
A residence permit under the Green card scheme can be granted for up to three years, with a possibility for extension of up to four years.
Read more about the Greencard scheme
Greencard scheme for students
There is a special version of the Green card scheme for students who complete a higher educational programme in Denmark.
In order to be granted a residence permit you must document:
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That you have been admitted to a higher educational programme which has been approved by a state authority or which is offered by a publicly accredited educational institution.
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That you can support yourself for the duration of your stay in Denmark. If you are to pay a tuition fee, you must document that you have paid the tuition fee for the first semester or year, instead of documenting that you can support yourself.
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That you can speak and understand the language of instruction and have a working knowledge of either Danish, Swedish, Norwegian, English or German.
Family Members
If you hold a residence permit under the Green card scheme, your spouse, registered partner or cohabiting partner, as well as any children under the age of 18 who are living at home with you, are also eligible for residence permits. Read more...
Extension
The condition for extending a residence permit is, first and foremost, that you still meet the conditions for your original residence permit.
When applying for an extension of your temporary residence permit, you need to use the correct application form, depending on your situation, and we aware of the application deadlines.
Click here for a guide to extension applications and deadlines
Work permits for self employed
It is possible to be granted a work and residence permit in order to be self-employed and/or operate an independent company in Denmark.
Conditions
Normally, you will not be eligible for a residence and work permit for the purpose of opening a restaurant or retail shop in Denmark. These are the key conditions:
- There must be particular Danish business interests related to the establishment of your business in Denmark.
- You must present documentation that you have access to sufficient financial means to run your business.
- Your presence and involvement must be vital to the establishment of the business, and you must participate actively in its day-to-day operation.
If you have only financial interests in the business - for example, if you are a shareholder - you are not eligible for a Danish residence and work permit.
Duration
As a self-employed person you will normally be granted a residence permit for one year with a possibility for extension. After two years' residence, you may be granted a residence and work permit for a longer period of time.
Family Members
If you have been granted a residence and work permit as a self-employed person, you do not automatically have the right to bring your family to Denmark.
How to apply for a work permit
We encourage you to consult the New to Denmark website regarding work permit applications. Here you can find up-to-date application forms for employees, self-employed persons, family members, jobseekers, as well as further information on the application procedure.
The Danish Labour Market and the Flexicurity Model
The Danish labour market is characterised by a high degree of flexibility when hiring, a social welfare system and active employment policies. Together, these three components constitute what is known as the 'Flexicurity Model', which combines a market economy with the traditional Scandinavian welfare state.
Flexicurity provides for a dynamic labour market and high job mobility. A major reason for the high degree of mobility is that there are practically no barriers to changing jobs. Moving to a new job has no effect on pension entitlements or earned holiday time, for example. The flexicurity model is the result of two decades worth of political reforms and collective bargaining.
Working Environment
Flat Structure and Informality
Most Danish workplaces are characterised by a flat structure and open dialogue between management and employees. This means, for example, that all employees and managers address each other by their first names, and that most decisions are discussed in forums where all employees have an equal say. The flat structure facilitates an environment of open, understanding and responsive communication between colleagues at all levels.
The working culture is cooperation-oriented which means that when working cooperatively and in teams tasks are performed jointly, goals are shared and the end product is the result of a collective effort. The teamwork is balanced by an expectation that employees be independent. The employee is part of a team, but at the same time the employee is free to do the assignments in the most efficient way. Furthermore, the working environment is marked by open and informal structures. This is also seen in meetings which are open and a place where discussion amongst colleagues flows freely.
Many Danes are very interested in their work and Danish employees are considered motivated and committed.
Social Relations at Work
In some countries it is common to go out with colleagues after work. While not unheard of in Denmark, it is not very common. Often the reason is that people are involved in after-work activities elsewhere with family, friends, sports and hobbies, or voluntary work.
Although spontaneously going out is not common, co-workers do take part in office social activities. The activities are arranged by the company, and planned weeks or months ahead. Workplace social activities are either formally arranged by the organisation or by a group of employees on their own initiative.
Typical workplace social events include the annual Christmas party (julefrokost), a summer party, Friday happy hour and more culturally oriented events that partners and children can attend, such as an evening at the theatre or trips to the zoo. At some workplaces, partners and children are always invited to social events. Other places it is more common that social activities are only for employees.
Work hours, trust and work-life balance
In Denmark, flexible work hours are common at many workplaces. Flexible work hours are possible because employers place a high level of trust in their employees. Employees are expected to complete their tasks; when and where they get them done is less important. This means people are allowed to work from home, work during the evening or work late one day and leave early another. Parents make use of this flexibility to work early mornings or late evenings so they can leave early enough to pick up their children from day care. This flexibility, combined to fewer hours worked annually compared with other countries, means that the office is sometimes empty after 4 o’clock.
The employee demand for flexible work hours is due to the fact that the majority of both men and women work. Denmark ranks second amongst OECD countries in terms of the percentage of working mothers with children under age 2 (OECD 2005), and flexible hours are essential for these two-income families.
For more informatino on workplace culture, working conditions, social life, and much more, check out our free book, Living and Working in Denmark - An Expat Perspective (2010).
Looking for a Job
There are a lot of places to look for a job in Denmark, some of which we have listed on our Jobs site.
Newtodenmark.dk notes that unemployment in Denmark is on the increase in certain sectors. The general unemployment rate for 2009 was 4.3 pct.
This means that recent years' general shortage in labour has now been replaced by a situation with a shortage in available jobs. This means that the demand for foreign labour has also been reduced drastically.
However, certain sectors still need foreign qualified professionals. When the Danish economy experiences growth again, the demand for foreign labour is expected to rise.
Terms of Employment and Salaries
In the Danish labour market, employment and wage conditions are normally regulated via collective agreements that have been reached between trade unions and employer associations. It is, for instance, the various players in the labour market that set working hours, the minimum wage and rules governing termination. The official working week is 37.5 hours long.
It is a minimum legal requirement that, no later than one month after commencement of employment, employers must draw up a contract of employment, a letter of appointment or another form of written account of the working relationship between employer and employee.
Salaries
The salary varies depending on the job sector in which you are working. The average wage for your sector can be found on the following website:
Payscale, a private and independent consultant, gives a good, free indication of what you can expect as a foreign professional based on what others in your field are getting. The payscale is, however, in no way indicative of "local" salaries, which are typically slightly lower, and differ greatly depending on whether you are working in the private or public sector.
Pensions
Source and more information: www.workindenmark.dk
Once you have been resident in Denmark for a number of years, you gain the right to a state pension; in addition, many people are also covered by a company pension or a collective pension scheme as a part of their employment contract. Furthermore, many people also choose to set up a private pension scheme.
State Pension Scheme
The amount the state pension depends on how long you have resided in Denmark. A person must have lived in Denmark for 40 years after turning 15 years old in order to be entitled to a full state pension from the Danish state. The Danish state pension is paid by the state to persons over 65 years of age and consists of a basic amount and a pension supplement. The gross basic amount is DKK 58,032 annually.
For more information: www.borger.dk (In Danish)
Statutory Pension Scheme
The Danish labour market supplementary pension (ATP) and the special pension savings (SP) scheme are supplemental pension insurance schemes that are regulated by Danish law.
The ATP contribution: In Denmark, anyone who works more than nine hours per week pays an ATP contribution to supplement their state pension. The employer pays 2/3 of the ATP contribution, and the worker pays 1/3.
SP contribution: The contribution to the special pension savings (SP) scheme comprises 1 percent of your gross income and is automatically deducted from your monthly pay.
Collective Pensions
Collective pension schemes are very common in the public sector. Most workers pay 17.1% of their salary before tax to a pension savings scheme. In addition to the pension savings, these pension schemes often include an insurance policy with health insurance, as well as coverage in case of disability, critical illnesses and death.
For more information: http://www.workindenmark.com
Company Pension
In Denmark, company pension schemes are seen as a very important supplement to the state pension scheme. Company pensions have become a very standard part of employment contracts for industry workers, office workers and executives.
Private Pension Schemes
You can set up a private pension scheme with a pension fund or a bank. Normally, your level of income will determine whether you can sign up to a capital pension scheme or a pension scheme payable in instalments.
Capital pension scheme: Provide a one-off payment.
Pension schemes payable in instalments: Pay out in installments over a number of years.
Pension Schemes in Home Country
If you already have a pension scheme in your home country, you can choose to continue with this scheme or establish a new pension scheme in Denmark. If a person has a pension scheme in his/her home country, it is not possible to obtain a tax allowance in Denmark. However, there are special rules for Switzerland, Holland and Great Britain whereby citizens of these countries are granted a tax allowance in Denmark.
Holidays and Holiday Pay (“Feriepenge”)
As an employee in Denmark, you are entitled to take 5 weeks holiday in every holiday year. The holiday year runs from 1 May until 30 April. For a list of the national holidays see “Holidays” section.
Accruing Holiday Entitlement
A worker has the right to five weeks' paid holiday from his/her employer if they have worked for an entire calendar year prior to commencement of the holiday year, either in the form of paid salary during the holiday, a holiday supplement or a holiday allowance.
If the worker has only been employed for a short time, 2.08 holiday days are earned per month of employment. If the worker has not earned the right to five weeks' paid holiday, he/she still has the right to take up to five weeks' holiday without any payment from the employer.
Pay during Holidays
A worker has a right to pay during holidays and a holiday allowance if: the worker paid on a monthly basis; is granted full pay during sickness and public holidays; and has been continually employed from the qualifying year until the holiday is held.
Holiday pay is equivalent to the worker's normal and fixed calculable salary at the time the holiday is taken.
If a worker has accrued holiday entitlement from a previous employer, the worker will be paid a holiday allowance during their holidays from the previous employer.
Taking Holidays
Holiday dates are mutually agreed on between the employer and the employee. All employees have the right to three weeks' uninterrupted holiday in the period 1 May - 30 September (primary holiday). Notice of this holiday must be given 3 months in advance; notice of other holidays must be given 1 month in advance.
Changing Jobs
You take the right to paid holiday with you when changing jobs. The employer must calculate the holiday allowance to which you are entitled. The employer then transfers the amount due to FerieKonto, or issues a holiday card to the employee. In both cases, the amount due is paid to the employee at a later date when the holiday is taken.
Starting Your Own Business
You can get help from your local business development centre, from a start-up consultant, from SKAT (the Danish tax authorities) or your local Jobcenter. The Internet can also provide you with an overview of advice options as well as information regarding laws, regulations, financing and other topics relevant to starting your own business (see useful links below).
Company Registration
You need to register your company at the CVR Register (Centrale Virksomheds Register = Central Business Register). As a general rule, all companies must register with the Danish Commerce and Companies Agency. This is optional, however, if your annual earnings are less than DKK 50,000. You can register your company by logging onto www.eogs.dk
Trade and Drinking License
All companies that sell more than DKK 50,000 of foodstuffs per year must be registered in a special business register. In this connection, food products are taken to mean any kind of food products, beer, wine, soft drinks and other food products regardless of whether they are in a sealed packaging.
Tax and VAT
You must file trading and business accounts with the Danish tax authorities on a yearly basis. Check out Tax in Denmark - An introduction for new citizens.
Insuring Employees
If your company employs staff, you must take out an employer's liability insurance to cover them.
Useful Links
Other sites with information on working in Denmark: