Minimum Salary Level to Increase
October 24, 2019
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At a Glance
Effective January 1, 2020, the minimum annual salary for EU Blue Card applicants in Germany will increase to EUR 55,200, or EUR 43,056 for shortage occupations, up 2.9 percent from last year.
The situation
Effective January 1, 2020, the minimum annual salary for EU Blue Card applicants in Germany will increase to EUR 55,200, or EUR 43,056 for shortage occupations, up 2.9 percent from last year. The exchange rate at the time of publication of this alert is 1 EUR to 1.11 USD.
A closer look
- Existing employees and renewal applications. Employers of foreign nationals currently under an EU Blue Card need not adjust the foreign national’s salary. Employers of foreign nationals seeking to renew an EU Blue Card on or after January 1, 2020 need not adjust the foreign national’s salary.
- Initial applications. Employers of foreign nationals seeking to obtain an EU Blue Card on or after January 1, 2020 must increase the foreign national’s salary to comply with the new rule.
- Pending applications. Employers of foreign nationals with pending EU Blue Card applications as of January 1, 2020 must increase the foreign national’s salary to comply with the new rule if the employment contract start date is on or after January 1, 2020.
- Other permit types. As a reminder, under the EU Intracompany Transferee (ICT) Permit (locally called ICT Card) and Local Hire Work & Residence Permit, foreign nationals must receive a salary comparable to a local worker.
Reminders on other requirements
- Benefits and allowances. Contact your immigration professional for advice on benefits and allowances.
- Currency. As before, employers are required to guarantee the salary in EUR, since EU Blue Card applicants must be on local payroll and paid in EUR.
Background
Most European countries increase minimum salary thresholds by 1-5 percent effective January 1 annually. Germany is among the first countries to publish their salary thresholds. for 2020
Looking ahead
Fragomen expects many more countries to start publishing the 2020 salary thresholds.
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].
