Salary income threshold to increase for EU Blue Card

IMPACT – MEDIUM

What is the change? Germany will raise the 2019 minimum salary for EU Blue Card holders.

What does the change mean? The threshold will be increased to €53,600 per year, or €4,466.67 per month, for the 2019 calendar year. In occupations deemed to have local labor shortages, the minimum will be €41,808 per year, or €3,484 per month.

• Implementation time frame: Jan. 1.
• Visas/permits affected: EU Blue Cards.
• Business impact: Employers paying at least the income threshold do not require approval from the Federal Employment Agency.
• Next steps: Companies should adjust their salaries for EU Blue Card applicants in 2019.

Background: The salary thresholds are indexed annually and adjusted according to § 19 of the Residence Act. The current gross minimum is €52,000 per year and €40,560 for shortage occupations.

For non-shortage occupations, employers who meet the minimum income level are not required to obtain approval of the Federal Employment Agency for issuance of EU Blue Cards. In shortage occupations, Blue Card applicants usually require agency approval, except when the foreign employee holds a German university degree. Shortage occupations include information and communications specialists, engineers, medical doctors and mathematicians. EU Blue Cards are only available to foreign nationals with a local contract to work in Germany and who hold a degree from a German university or an accredited foreign equivalent.

Analysis & Comments: German employers should budget for the new minimum salaries, which represent a 3-percent increase over the current thresholds.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.