Minimum Salary Level to Increase

The situation

Effective January 1, 2019, the minimum monthly salary threshold for foreign workers in the Netherlands will increase as follows, up approximately two percent from last year:

Category	Previous minimum salary level	New minimum salary level
EU Blue Card	EUR 5,160	EUR 5,272
Highly-skilled migrant over 30 years of age	EUR 4,404	EUR 4,500
Highly-skilled migrant under 30 years of age	EUR 3,229	EUR 3,299
Highly-skilled migrant permit (after orientation year permit or those who fulfill criteria for the orientation year permit)	EUR 2,314	EUR 2,364
Intracompany Transferee (ICT) work permit	EUR 4,404 + 8% holiday pay	EUR 4,500 + 8% holiday pay
Short-term highly-skilled migrant work permit for those over 30 years	EUR 4,404 + 8% holiday pay	EUR 4,500 + 8% holiday pay
Short-term highly-skilled migrant work permit for those under 30 years	EUR 3,229 + 8% holiday pay	EUR 3,299 + 8% holiday pay

A closer look

• Market salary rate. As before, salaries must also meet the Netherlands market salary rate for the proposed position. For EU ICT Permit applications, the salary must also be in line with Dutch salary levels. Salaries above the highly-skilled migrant levels are presumed to be in line with Dutch salary levels, whereas salaries below the above-mentioned thresholds are automatically checked against the market salary rate, an additional processing step which can take up to five weeks to complete.
• Existing employees. Employers of foreign nationals currently under a valid permit need not increase the foreign national’s minimum salary to comply with the new rule.
• Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a permit on or after January 1, 2019 must increase the foreign national’s minimum salary to comply with the new rule. Immigration applications that do not meet the minimum salary will be rejected.
• Pending applications. Employers of foreign nationals with pending permit applications that have been filed before January 1, 2019 must only meet the 2018 threshold. Applications that are expected to be filed after January 1, 2019 must meet the 2019 threshold. Immigration applications that do not meet the minimum salary will be rejected.

 

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 employment contract or assignment letter, guaranteed and fixed, paid on a monthly basis, and are not paid in kind but to the employee’s bank account. Holiday allowance cannot be included in the minimum salary calculation. Benefits and allowances may not be included for ICTs that apply for a work permit only.
• Currency. As before, employers are required to guarantee the salary in EUR, regardless of payroll location and/or exchange rate fluctuations.
• Maintaining a margin. Frequent applications with a minimum salary exactly equal to the threshold may raise questions and audits.

 

Background

A two percent increase is typical for the Netherlands, which increased salary thresholds by two percent for 2018 and for 2017.

Looking ahead

The Netherlands is the eighth European country to announce new salary thresholds this year. The Netherlands is typically among the later countries to publish new amounts, but published the changes exceptionally early this year. No threshold changes are expected for Finland, Georgia, Hungary, Italy, Luxembourg, Norway, Spain, Sweden and Switzerland.

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].