At a Glance
-
Effective immediately, employers can prorate allowances for all work permit types based on the number of days an employee spent in Germany.
-
This should reduce costs for allowances since the previous policy required employers to pay an allowance throughout the whole duration of the assignment.
The situation
According to a new German Federal Employment Agency policy, effective immediately, employers can prorate allowances – which are funds the employer pays in addition to salary – for all assignment work permit types.
A closer look
Previously, the Federal Employment Agency required employers to pay allowances throughout the whole duration of an employee’s assignment – even for the days the employee was not in Germany.
The previous rule only allowed prorating of allowances for employees under the International Staff Exchange Permit.
With immediate effect, this rule now applies to the payment of allowances for other assignment work permits (e.g. Intracompany Transferee (ICT) card).
Background
All other allowance-related rules are still applicable. For example, the employer must pay the allowance directly to the employee without restrictions and working condition-related rules remain the same.
Impact
This new regulation simplifies the allowance policy for companies and should increase the popularity of permit types such as the ICT card.
Employers should ensure they can provide an overview of each employee’s days spent in Germany upon request from German immigration authorities.
If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Media mentions
O diretor Gustavo Kanashiro compartilha como os cidadãos luso-brasileiros poderiam potencialmente solicitar o visto E-2 dos EUA para investidores.
Fragomen news
The AILA NJ Chapter presents Director & Pro Bono Counsel Barbara Camacho with the Pro Bono Champion Award.
Podcast
Members of Fragomen's Education Practice discuss the UK's digitisation of the immigration system and its impact on the UK education sector.
Blog post
Senior Manager Alfred Chong and Senior Business Immigration Consultant Jonathan Ying discuss the steady rise of Japan's tourism sector, applications for permanent residency and the overall appeal of Japan as a place to live.
Awards
Fragomen and TBB received the “Partnership with an International Charity” award at the 9th Annual Better Society Awards.
Media mentions
Partner Louise Haycock shares how the UK’s salary threshold is impacting businesses.
Media mentions
Nomadic Director Kim Conway discusses technology’s impact on the business travel landscape at the 2024 GBTA Canada Conference.
Media mentions
In an interview, Partner David Grunblatt shares his thoughts on the challenges impacting the future of immigration law.
Video
Partner Charles Johanes discusses key tips on managing workforce ratios and other localisation requirements across the APAC region.
Blog post
Associate Anastasija Vasiljeva discusses the digitalisation of the UK immigration system, how these changes are designed to enhance efficiency and security and how student sponsors and visa nationals must stay informed and compliant.
Video
Senior Immigration Consultant Elisabeth Kamm discusses changes to the Schengen Area that travelers should be aware of and how they can ensure they are prepared to meet immigration requirements.
Blog post
Senior Manager Deirdre Murray discusses the possibility of the Irish Government granting the spouses and partners of Intra-Company Transfer employment permits an automatic right to work in Ireland.
Media mentions
O diretor Gustavo Kanashiro compartilha como os cidadãos luso-brasileiros poderiam potencialmente solicitar o visto E-2 dos EUA para investidores.
Fragomen news
The AILA NJ Chapter presents Director & Pro Bono Counsel Barbara Camacho with the Pro Bono Champion Award.
Podcast
Members of Fragomen's Education Practice discuss the UK's digitisation of the immigration system and its impact on the UK education sector.
Blog post
Senior Manager Alfred Chong and Senior Business Immigration Consultant Jonathan Ying discuss the steady rise of Japan's tourism sector, applications for permanent residency and the overall appeal of Japan as a place to live.
Awards
Fragomen and TBB received the “Partnership with an International Charity” award at the 9th Annual Better Society Awards.
Media mentions
Partner Louise Haycock shares how the UK’s salary threshold is impacting businesses.
Media mentions
Nomadic Director Kim Conway discusses technology’s impact on the business travel landscape at the 2024 GBTA Canada Conference.
Media mentions
In an interview, Partner David Grunblatt shares his thoughts on the challenges impacting the future of immigration law.
Video
Partner Charles Johanes discusses key tips on managing workforce ratios and other localisation requirements across the APAC region.
Blog post
Associate Anastasija Vasiljeva discusses the digitalisation of the UK immigration system, how these changes are designed to enhance efficiency and security and how student sponsors and visa nationals must stay informed and compliant.
Video
Senior Immigration Consultant Elisabeth Kamm discusses changes to the Schengen Area that travelers should be aware of and how they can ensure they are prepared to meet immigration requirements.
Blog post
Senior Manager Deirdre Murray discusses the possibility of the Irish Government granting the spouses and partners of Intra-Company Transfer employment permits an automatic right to work in Ireland.