Minimum Salary Level Increased

The situation

Effective January 1, 2019, the minimum monthly salary for foreign workers in Luxembourg has increased as follows:

A closer look

• Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a work permit on or after January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
• Pending applications. Employers of foreign nationals with pending work permit applications as of January 1, 2019 must increase the foreign national’s salary to comply with the new rule. Immigration authorities will grant sufficient time to allow salary changes. Employers are advised to notify salary changes to prevent additional documents being requested.
• Existing employees. Employers of foreign nationals must increase the foreign national’s salary to comply with the new rule.

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 assignment letter or employment contract, processed through payroll for payment into the foreign national’s bank account, not paid in kind, paid at regular intervals throughout the assignment period (excluding one-off payments), guaranteed and fixed (excluding performance-based bonuses).
• Currency. As before, employers are required to guarantee the salary in EUR regardless of payroll location and/or exchange rate fluctuations.

Background

Luxembourg increased the salary requirement by 3.9 percent for 2017 and 3.6 percent for 2018. In August, the salary requirement was exceptionally once again increased by 2.5 percent. The EU Blue Card salary threshold was increased in December 2017 and may be amended later this year.

Looking ahead

Croatia, Israel, Latvia and Slovenia are expected to announce new salary thresholds in the coming 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 [email protected].