Minimum Salary Level Increased

The situation

Effective January 1, 2020, the minimum monthly salary for foreign workers in Luxembourg is as follows:

Work authorization type	Prior salary requirement	Current salary requirement	Percentage increase
EU Intracompany Transferee Permit	• Salary similar to a local employee in the same position • At least EUR 2,507.70 gross/month	• Salary similar to a local employee in the same position • At least EUR 2,570.39 gross/month	2.5 percent
Work Permit for Salaried Workers	• EUR 2,507.70 gross/month for graduates • EUR 2,089.75 gross/month for other workers	• EUR 2,570.39 gross/month for graduates • EUR 2,141.99 gross/month for other workers

 

The exchange rate at the time of publication of this alert is EUR 1 to USD 1.11.

A closer look

• Existing employees. Employers of current permit holders must increase foreign nationals’ salaries to comply with the new rule.  
• Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew work authorization on or after January 1, 2020 must increase foreign nationals’ salaries 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 authorization applications as of January 1, 2020 must increase foreign nationals’ salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.

 

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

The minimum salary level in Luxembourg for EU Blue Card positions was recently increased by 5.9 percent in September 2019 for both regular and shortage occupations.

Looking ahead

Fragomen expects additional countries to update their salary requirements for 2020 and will report on notable changes.

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].