US

Dec 06 2019

Minimum Salary Levels to Increase

Netherlands

At a Glance

Minimum monthly salary levels for some foreign workers in Netherlands will increase on January 1, 2020. The new amounts will be:

  • Highly-skilled migrants over 30 years old: EUR 4,612
  • Highly-skilled migrants under 30 years old: EUR 3,381
  • Highly-skilled migrants (after orientation year permit or those who fulfill criteria for the orientation year permit): EUR 2,423.
  • EU Blue Card holders: EUR 5,403.

 

Applications received by immigration authorities on or after January 1, 2020 must comply with the new minimum amounts.

The situation

Minimum monthly salary levels for some foreign workers in Netherlands will increase by approximately 2.4 percent on January 1, 2020 as follows:

Permit type Prior salary level New salary level

Highly skilled migrants over 30 years old

EUR 4,500

EUR 4,612

Highly skilled migrants under 30 years old 

EUR 3,299

EUR 3,381

Recent graduates/after job search year 

EUR 2,364

EUR 2,423

EU Blue Card

EUR 5,272

EUR 5,403

A closer look

  • Market salary rate. As before, salaries must also meet the Netherlands market salary rate for the proposed position.
  • Existing employees. Employers of foreign nationals currently under a valid permit need not increase the foreign national’s minimum salary to comply with the new rule.
  • Initial and renewal applications. Applications received by immigration authorities on or after January 1, 2020 must comply with the new minimum amounts. Applications that do not meet the minimum salary will be rejected.
  • Pending applications. Employers of foreign nationals with pending permit applications that have been filed before January 1, 2020 must only meet the 2019 threshold. Applications that are expected to be filed after January 1, 2020 must meet the 2020 threshold. Immigration applications that do not meet the minimum salary will be rejected.

 

Reminders on other requirements

  • Benefits and allowances. As before, benefits and allowances may only be included in the minimum salary calculation if they are specified in the employment contract or assignment letter, guaranteed and fixed, paid on a monthly basis, and are not paid in kind but to the employee’s bank account. Holiday allowance cannot be included in the minimum salary calculation.
  • Currency. As before, employers are required to guarantee the salary in EUR, regardless of payroll location and/or exchange rate fluctuations.
  • Maintaining a margin. Frequent applications with a minimum salary exactly equal to the threshold may raise questions and audits.

 

Background

A two percent increase is typical for the Netherlands, which increased salary thresholds by two percent in 2019, 2018 and 2017.

Looking ahead

Fragomen expects many more countries to publish updated salary figures in the upcoming weeks.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to benelux@fragomen.com.