Seeking qualified labour for jobs in Denmark

LABOUR SHORTAGE: In the years ahead, more Danes will be retiring from work than will be entering the labour market. The Danish government is making comprehensive efforts to attract qualified labour from abroad

BY JACOB BENTHIEN

The Danish authorities are launching a comprehensive campaign in 2008 to attract competent foreign workers to the Danish labour market. Attractive tax schemes, easier access to green cards and reduction of the salary threshold which provides direct access to the Danish labour market are among the government’s initiatives to attract foreign experts and other workers.

“The government has a twin-track strategy, raising the pressure to get the increasingly small group of unemployed Danes into work, while working hard to attract foreign workers with the right competencies to Denmark,” says Minister for Employment Claus Hjort Frederiks-en. “With a current total of 60,000 vacant jobs in the public and private sector, we need to provide easier and more attractive access for foreign workers to the Danish labour market if we are going to ensure continued welfare and economic growth,” says the minister.

ATTRACTIVE TAX SCHEME

The government’s plan comprises 26 different initiatives, including improvement of the current taxation scheme for foreign researchers and highly paid key workers. Taxation in Denmark is applied on a progressive scale, i.e. the last earned krone is subject to relatively higher taxation than the first earned. Denmark also has the world’s second largest tax burden, but unlike other countries where many public services are paid for separately, they are free in Denmark. Taxation will be eased on highly qualified researchers and other highly paid key workers, who can choose between working for three years in Denmark at a gross taxation rate of 25% or working for five years at a gross taxation rate of 33%. Approval of foreign research qualifications will also be streamlined.

EASIER ACCESS

Highly qualified workers in fields such as IT, healthcare and engineering have the opportunity to seek work in Denmark either by means of a Green Card or a special scheme where foreign workers can obtain a Job Card.

Foreign workers can obtain a Green Card based on their training, work experience, linguistic or other skills. The jobseeker is awarded points according to specific criteria, and once a Green Card has been obtained, the holder can seek jobs in Denmark without needing to apply for a separate work or residence permit.

The Job Card Scheme has so far meant that foreign workers have been granted a work permit and residence permit in Denmark if they could document a job offer with a minimum salary of DKK 450,000 annually. The government is now reducing this to DKK 375,000 annually, which will considerably enlarge the group of potential workers at middle management level.

“WORK-IN-DENMARK”

The government will also make it easier for international corporations to use staff from other parts of their international organisations. Until now it has only been possible to immediately transfer staff to Denmark if they came from affiliates located within the European Union. In the future, it will also be possible to redeploy staff from outside the EU without needing to apply for separate work and residence permission each time.

The government will also establish a special “Work-in-Denmark” center. The center will work actively to attract qualified labour to Denmark and will function as a one-stop-shop for foreigners with the right qualifications who want to work in Denmark. Initially a pilot center will be established in one country outside the EU.

LINKS

http://www.workindenmark.dk
http://www.workimport.dk
http://www.denmark.dk
http://www.nyidanmark.dk
http://www.bm.dk