Immigration
Denmark | Changes to the bank account requirement
Summary
Today, the Danish Parliament adopted a long-awaited amendment in the immigration law regarding the requirement of receiving salary to a Danish bank account. The change means that as of 1 July 2024 employees that have received a Danish residence and work permit under the Fast Track Scheme (short term track, pay limit track, educational track & researcher track) or the Researcher Scheme are no longer required to receive their salary to a Danish bank account.
For employees that hold a residence and work permit under other work schemes, e.g., the Pay Limit Scheme, the deadline for opening a Danish bank account will be extended from 90 days to 180 days.
The detail
How does the change affect you as a Fast Track Certified employer?
The amendment aims to increase the flexibility for Fast Track Certified companies and companies that hire employees under the Researcher Scheme.
The amendment means that you as a Fast Track Certified employer will as of 1 July 2024 no longer be obliged to pay salary to a Danish bank account to those of your employees who already hold a residence and work permit under the Fast Track Scheme (short-term track, pay limit track, researcher track & educational track). Going forward, you will not be required to pay salary to a Danish bank account to the employees who in the future will receive a residence and work permit under the short-term track, pay limit track, researcher track & educational track of the Fast Track Scheme.
Please bear in mind that it is still a requirement that the offered salary level is considered ordinary compared to Danish standards and that the salary is paid in cash (not in benefits), including Danish labour market pension contributions (if applicable).
How does the change affect you as a non-Fast Track Certified employer?
The change in law also makes it easier for companies that hire employees under the other work schemes – e.g. the Pay Limit Schemes or the Positive Lists – to stay compliant by extending the time limit to open a Danish bank account from 90 days to 180 days.
The extension of the deadline is made in acknowledgment of the difficulties that foreign employees can experience when facing the processing times to open a Danish bank account.
As for Fast Track Certified companies it will still be a requirement that the offered salary level is considered ordinary and is paid in cash (not in benefits) and Danish labour market pension contributions, if applicable, throughout the entire period of employment.
Other changes to the immigration law
Following the amendment in the immigration law there has also been an amendment in the job change rule and the Fast Track Scheme’s Short-Term Track, which we will update you on in our next Danish Vialto Newsletter following shortly.
How we can help
Vialto Partners offers specialised Immigration services. Our highly skilled Immigration experts can provide an in- depth assessment of how these new changes could affect and benefit your company. Among other things we can help you with setting a payroll policy for your international employees. If interested, then please do not hesitate to reach out to us.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Julie Klint Torp
Senior Manager
Christopher Aastrup
Senior Associate
Nagma Mohamed
Associate
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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