Germany
The Federal Employment Agency has decided not to implement a rule that would have excluded non-cash benefits such as housing, cars and meals provided by the employer and travel expenses, among other allowances, from the calculation of the minimum salary when comparing the foreign national’s salary with a local salary.
Payments Eligible for Minimum Salary Calculation
Employers can include the following types of payment in the minimum salary calculation when comparing the foreign national’s salary with a local salary:
• Actual take-home salary;
• Allowances without conditions paid directly to the assignee for the entire duration of the assignment; and
• Per diem allowances paid to reach the minimum salary, if paid as a lump sump.
Allowances (such as housing and transportation costs) still do not count toward the general minimum salary calculation, but will be taken into account when conducting a comparison with the local salary.
What This Means for Employers and Foreign Nationals
Employers hiring foreign workers can still take into account per diem payments provided by the company and paid as a lump sump for housing, meals and cars when comparing a foreign worker's salary with a local salary.
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].
© 2016 Fragomen
Explore more at Fragomen
Media mentions
Senior Manager Jonathan Hill noted that stricter UKVI audits and asylum claim reviews are driving more student visa action plans.
Media mentions
Partner K. Edward Raleigh and Associate Anna I. Perina explore how changing immigration enforcement is affecting workforce planning and compliance for US employers.
Blog post
Corporate Services Manager Asfandyar Sheikh and Assistant Corporate Services Manager Ka-Ying Leung provide guidance for businesses on the legal and procedural requirements for amending their AoA in Saudi Arabia.
Blog post
Counsel Susan Steger discusses how US employers can navigate ongoing green card delays and shifting visa bulletin trends to better support foreign talent and workforce planning.
Media mentions
Awards
WirtschaftsWoche names Fragomen to its "Best Law Firms 2025" list and Partner Axel Boysen to its "Best Lawyers 2025" list in the field of migration law for private individuals.
Awards
Fragomen is ranked in Band 1 in Chambers & Partners High Net Worth Legal Guide 2025.
Media mentions
Partner Rick Lamanna discusses the potential option of decentralizing work permit issuance in Canada, emphasizing the need for clear coordination between the provincial and federal governments.
Video
Fragomen FC hosts are joined by Manager Alexander Hood to examine how immigration rules are reshaping global football, from EPL transfers to the rise of international transfers into the Women’s Super League.
Media mentions
Partner Aaron Blumberg noted that enhanced screening measures, including social media vetting, may be contributing to delays in US student visa processing.
Media mentions
Associate Ilaria Iovieno outlines how recent UK immigration reforms will impact construction employers and their ability to sponsor overseas talent.
Media mentions
Senior Manager Jonathan Hill noted that stricter UKVI audits and asylum claim reviews are driving more student visa action plans.
Media mentions
Partner K. Edward Raleigh and Associate Anna I. Perina explore how changing immigration enforcement is affecting workforce planning and compliance for US employers.
Blog post
Corporate Services Manager Asfandyar Sheikh and Assistant Corporate Services Manager Ka-Ying Leung provide guidance for businesses on the legal and procedural requirements for amending their AoA in Saudi Arabia.
Blog post
Counsel Susan Steger discusses how US employers can navigate ongoing green card delays and shifting visa bulletin trends to better support foreign talent and workforce planning.
Media mentions
Awards
WirtschaftsWoche names Fragomen to its "Best Law Firms 2025" list and Partner Axel Boysen to its "Best Lawyers 2025" list in the field of migration law for private individuals.
Awards
Fragomen is ranked in Band 1 in Chambers & Partners High Net Worth Legal Guide 2025.
Media mentions
Partner Rick Lamanna discusses the potential option of decentralizing work permit issuance in Canada, emphasizing the need for clear coordination between the provincial and federal governments.
Video
Fragomen FC hosts are joined by Manager Alexander Hood to examine how immigration rules are reshaping global football, from EPL transfers to the rise of international transfers into the Women’s Super League.
Media mentions
Partner Aaron Blumberg noted that enhanced screening measures, including social media vetting, may be contributing to delays in US student visa processing.
Media mentions
Associate Ilaria Iovieno outlines how recent UK immigration reforms will impact construction employers and their ability to sponsor overseas talent.