Germany
On or after January 1, 2016, non-cash benefits such as housing, cars and meals provided by the employer and travel expenses, among other allowances, will likely no longer be included in the minimum salary calculation for foreign workers in Germany, according to a published decision by the German Federal Employment Agency (FEA). The decision has not yet been fully interpreted and is subject to change.
Payments Eligible for Minimum Salary Calculation
Employers will still be able to include the following types of payment toward the minimum salary calculation:
- Actual take-home salary; and
- Allowances without conditions paid directly to the assignee for the entire duration of the assignment.
Background
The FEA responsible for the International Staff Exchange visa category was the most recent and last of the FEA units to officially adopt this position.
Other FEA units retain discretion to approve applications that contain non-cash benefits as part of the minimum salary on a case-by-case basis.
What This Means for Employers
Employers hiring foreign workers will likely not be able to take into account costs of housing, meals and cars provided by the company, or travel expenses, when determining whether a foreign worker’s salary complies with the minimum salary rules.
Fragomen is monitoring the implications of this decision and will provide updates when it is clarified.
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 [email protected].
Explore more at Fragomen
Work authorization
Senior Associate Tugba Ozyakup and Senior Immigration Manager Andreia Ghimis explore how the EU’s Entry/Exit System is reshaping Schengen overstay enforcement, the risks facing travellers and employers and the legal remedies available to challenge or prevent adverse outcomes.
Video
Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.
Media mentions
Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.
Media mentions
Video
Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.
Media mentions
Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.
Media mentions
Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.
Work authorization
UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.
Video
Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.
Media mentions
Video
Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support.
Video
Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).
Work authorization
Senior Associate Tugba Ozyakup and Senior Immigration Manager Andreia Ghimis explore how the EU’s Entry/Exit System is reshaping Schengen overstay enforcement, the risks facing travellers and employers and the legal remedies available to challenge or prevent adverse outcomes.
Video
Partner Rick Lamanna, Senior Associate Jake Paul Minster and Senior Manager Sergio Flores discuss Canada’s entry requirements for the 2026 FIFA World Cup, including visa-required and visa-exempt nationals, visitor entry rules and key planning considerations for fans, teams, media and volunteers.
Media mentions
Partner Kevin Miner discusses the DOL’s proposed H-1B wage rule and its potential to add significant unplanned costs for US employers.
Media mentions
Video
Senior Associate Isabel Schnitzler highlights key pathways to German citizenship, including descent-based eligibility and standard naturalization requirements and outlines important considerations for individuals exploring their options.
Media mentions
Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.
Media mentions
Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.
Work authorization
UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.
Video
Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.
Media mentions
Video
Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support.
Video
Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).