Denmark eases work visas for Indians, Chinese; salary floor now ₹26 lakh

Business Standard

a day ago

After years of keeping migrant numbers low, Denmark is finally opening up its labour market to workers from countries including India and China. A new agreement, presented by the Danish government, will make it easier for local companies to hire foreign workers while keeping employment terms within Denmark's collective bargaining model.
New access with collective agreements
'This is a breakthrough in the way we provide access to Denmark for foreign workers, where companies must now have a collective agreement if they want to use the new scheme. It is a clear strengthening of the Danish model,' said Ane Halsboe-Jørgensen, Denmark's minister of employment in a statement.
Under the new plan, only companies covered by collective agreements will be allowed to hire workers under the relaxed rules. These employers will also need to provide access to individual pay and working conditions through union representatives.
Stephanie Lose, Denmark's minister for economic affairs, added, 'With the new agreement, we ensure that it will be easier for Danish companies to hire qualified international workers – and that it is on proper pay and working conditions.'
Shortage of workers prompting the shift
The change comes as Denmark faces growing shortages of skilled workers, especially in sectors like pharmaceuticals, technology, and services.
'Right now, we are short of employees to carry out important tasks in our society. Therefore, it is absolutely crucial that we give Danish companies better opportunities to recruit qualified international labour,' said Christina Egelund, minister of education and research.
She added, 'It is important that we in Denmark have an international outlook if we want to ensure continued growth and more jobs. In a time of division, where several countries seem to be closing in on themselves, we in Denmark must insist on international cooperation.'
Salary thresholds lowered
After long-standing political debate, the Danish coalition government has agreed to lower the annual salary threshold for foreign workers outside the European Union. The threshold has been reduced from 514,000 Danish kroner to 300,000 kroner (around Rs 25.6 lakh) per year. For sectors already facing labour shortages, the threshold drops from 415,000 kroner to the same 300,000 kroner.
Foreign workers under this new scheme will also be issued ID cards—though these are expected to roll out only after five years, once the IT system is in place.
16 approved countries under new rules
The relaxed rules will initially apply to workers from 16 countries, including India, but exclude countries from Africa and the Middle East.
List of approved countries:
India
United States
United Kingdom
Singapore
China
Japan
Australia
Canada
Brazil
Malaysia
Montenegro
Serbia
North Macedonia
Albania
Ukraine
Moldova
'It is not unimportant where international labour comes from,' said Kaare Dybvad, minister for immigration and integration. 'In my opinion, it is absolutely crucial that the new scheme is limited to countries with which we have a common interest, for example because we have a high degree of trade. I believe that it is better for Denmark that the labour comes from Great Britain than from Somalia.'
Danish businesses welcome move
The shift has been welcomed by business groups.
'It is a good day for Denmark and Danish business,' said Jacob Holbraad, CEO of the Confederation of Danish Employers in a press release. 'With a shortage of labour in Denmark, international employees have become crucial for Danish companies and the Danish economy in recent years.'
The government said Denmark is increasingly competing in a global market for high-skilled talent. In a recent international survey of 103 countries, Denmark ranked third in potential for attracting foreign knowledge workers.
'This is because we have an efficient public sector, a flexible labour market and a high knowledge level that gives highly educated workers opportunities to use their talent,' the Danish government said in a press release.
Indian community in Denmark remains small
There are around 22,000 Indians living in Denmark, including both Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), according to data available with India's ministry of external affairs. Most are employed in IT, healthcare, finance, engineering, and academia, or run small businesses.
Compared to countries like Germany or the Netherlands, the Indian population in Denmark remains modest, partly due to strict immigration rules, language barriers, and the high cost of living. The new policy could change that over time, if employers respond positively to the changes.