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
Awards
Fragomen is recognized with multiple honors at the 2026 FEM Americas EMMAs, including Outstanding Agility & Crisis Management as a Service Provider and Thought Leadership – Best Survey or Research Study of the Year for the Worldwide Immigration Trends Report 2026.
Blog post
Destination Services Director Christine Sperr examines how housing market reforms, rent stabilization measures and cost-of-living dynamics in Saudi Arabia are influencing workforce mobility, compensation planning and long-term settlement strategies under Vision 2030.
Visas
Manager Dr. Adela Schmidt explains how German authorities assess past travel and business activities and why suspected unauthorized work during prior visits can lead to visa refusals and temporary entry bans.
Podcast
Partner Cosmina Morariu and Senior Director Leah Rogal discuss the mission of Fragomen’s Center for Strategy and Applied Insights and how it helps organizations and governments navigate evolving immigration policy and global talent mobility challenges.
Fragomen news
Fragomen and Papaya Global announce a strategic partnership combining workforce technology and immigration capabilities to help organizations simplify global mobility, enhance compliance and manage cross-border workforces through a more integrated, technology-enabled approach.
Video
Latin America & the Caribbean Managing Partner Leonor Echeverria explores how Latin America’s evolving immigration landscape offers accessible and flexible residence pathways for foreign nationals, highlighting key visa options, regional trends and the growing role of digital modernization across the region.
Podcast
Senior Associate Stephanie Weaver and Associate Julia Manacher continue their discussion on immigration law in popular culture, examining how television and media portray immigration processes and the realities behind common immigration storylines.
Media mentions
Partner Kevin Miner discusses how proposed H-1B salary threshold increases may raise employer costs and influence hiring strategies for specialized talent across industries.
Video
In this Mobility Minute, Manager Pierangelo D’Errico discusses Portugal’s newly approved nationality law changes and the potential impact on Golden Visa applicants and other foreign residents.
Media mentions
Partner Rajiv Naik highlights the importance of transparency, clear guidance and human oversight as AI use expands in UK immigration tribunals.
Video
Senior Associate Tuğba Özyakup outlines how Europe’s Entry and Exit System (EES) introduces digital tracking of non-EU short-stay travel across the Schengen Area, requiring more proactive planning, accurate record-keeping and awareness of increased border processing times to avoid delays and overstay risks.
Fragomen news
Awards
Fragomen is recognized with multiple honors at the 2026 FEM Americas EMMAs, including Outstanding Agility & Crisis Management as a Service Provider and Thought Leadership – Best Survey or Research Study of the Year for the Worldwide Immigration Trends Report 2026.
Blog post
Destination Services Director Christine Sperr examines how housing market reforms, rent stabilization measures and cost-of-living dynamics in Saudi Arabia are influencing workforce mobility, compensation planning and long-term settlement strategies under Vision 2030.
Visas
Manager Dr. Adela Schmidt explains how German authorities assess past travel and business activities and why suspected unauthorized work during prior visits can lead to visa refusals and temporary entry bans.
Podcast
Partner Cosmina Morariu and Senior Director Leah Rogal discuss the mission of Fragomen’s Center for Strategy and Applied Insights and how it helps organizations and governments navigate evolving immigration policy and global talent mobility challenges.
Fragomen news
Fragomen and Papaya Global announce a strategic partnership combining workforce technology and immigration capabilities to help organizations simplify global mobility, enhance compliance and manage cross-border workforces through a more integrated, technology-enabled approach.
Video
Latin America & the Caribbean Managing Partner Leonor Echeverria explores how Latin America’s evolving immigration landscape offers accessible and flexible residence pathways for foreign nationals, highlighting key visa options, regional trends and the growing role of digital modernization across the region.
Podcast
Senior Associate Stephanie Weaver and Associate Julia Manacher continue their discussion on immigration law in popular culture, examining how television and media portray immigration processes and the realities behind common immigration storylines.
Media mentions
Partner Kevin Miner discusses how proposed H-1B salary threshold increases may raise employer costs and influence hiring strategies for specialized talent across industries.
Video
In this Mobility Minute, Manager Pierangelo D’Errico discusses Portugal’s newly approved nationality law changes and the potential impact on Golden Visa applicants and other foreign residents.
Media mentions
Partner Rajiv Naik highlights the importance of transparency, clear guidance and human oversight as AI use expands in UK immigration tribunals.
Video
Senior Associate Tuğba Özyakup outlines how Europe’s Entry and Exit System (EES) introduces digital tracking of non-EU short-stay travel across the Schengen Area, requiring more proactive planning, accurate record-keeping and awareness of increased border processing times to avoid delays and overstay risks.
Fragomen news