Denmark’s Parliament passed legislation on 4 September 2026 to create a new work permit route called the Collective Agreement-Based Business Scheme. The scheme is scheduled to begin on 1 January 2027 and will allow eligible employers in Denmark to recruit foreign workers under a simplified immigration pathway. Indian nationals will be among the citizens of 16 eligible countries who can apply under this route.
Collective Agreement-Based Business Scheme
The Collective Agreement-Based Business Scheme is an employment-based immigration route linked to Danish labour market rules. It requires the employer to be covered by a relevant collective agreement, to have operated for at least two years, and to employ at least 10 full-time workers in Denmark. The scheme is designed for businesses facing labour shortages.
Employer Eligibility and Certification
Employers must register with the Danish immigration authorities, known as SIRI, before hiring foreign workers through this route. They must also obtain certification confirming that they meet the required conditions. SIRI stands for the Danish Agency for International Recruitment and Integration.
- A collective agreement is a labour contract negotiated between employers and workers’ representatives in Denmark.
- Certification by SIRI is a formal requirement for employers using the new route.
- The scheme applies only to employers that meet the minimum workforce and operational criteria.
Salary Threshold and Unemployment Brake
Foreign workers hired under the scheme will receive a minimum annual salary of DKK 322,000, which is about ₹47 lakh at the 2026 level. This salary threshold is lower than the requirement under some existing Danish employment-based immigration routes. The scheme also includes an unemployment brake mechanism that can restrict its use if unemployment in Denmark rises above a specified level.
Important Facts for Exams
- Denmark is a constitutional monarchy in Northern Europe and a member of the European Union.
- SIRI is the Danish Agency for International Recruitment and Integration.
- Collective agreements are central to labour regulation in Denmark.
- The new route is scheduled to take effect on 1 January 2027.
Immigration Route for Indian Nationals
Indian nationals are included among the 16 eligible nationalities under the new scheme. The operational application process and implementation rules are expected to be issued by SIRI closer to the launch date. The route forms part of Denmark’s employment-based immigration framework.
