Salary requirements to increase for highly-skilled migrants

IMPACT – LOW

What is the change? The Netherlands’ monthly salary requirements for highly-skilled migrant workers will increase by 3.48 percent Jan. 1.

What does the change mean? Companies will have to pay slightly higher salaries to highly-skilled workers applying for work and residence permits, including those applying for EU Blue Cards or completing the Knowledge Migrant application.

• Implementation timeframe: Jan. 1.
• Visas/permits affected: Entry and Stay permits (“Toegang en Verblijf vergunningen”).
• Who is affected: Companies employing highly-skilled foreign workers.
• Impact on processing times: No impact.
• Business impact: Some Dutch companies’ business costs could increase because of the higher minimum salary requirements.
• Next steps: Companies should consider the increased minimum salary requirements in their 2015 financial planning.

Background: The Dutch government sets minimum salaries for highly skilled migrant workers every year. This year, the minimum salaries will increase by 3.48 percent across all categories of highly skilled foreign workers.

The minimum gross pay for highly skilled migrant workers who are 30 years of age or older will increase to €4524 per month. Gross pay for highly skilled migrant workers under 30 will increase to €3317 per month. Graduates who land jobs as highly skilled employees within a year of graduation will be due minimum gross pay of €2377 per month.

The minimum pay for holders of EU Blue cards will be set at €5300 per month. And the minimum pay for intra-corporate transferees will be set at €4524 per month, or €3317 per month for intra-corporate transferees in the trainee category.

The figures above include an 8 percent holiday allowance.

Salaries must be paid in equal installments, on at least a monthly basis.

BAL Analysis: Companies should prepare for the salary increases. The penalties for noncompliance are stiff: the Inspectorate SZW, a division of the Ministry of Social Affairs and Employment (“Ministerie van Sociale Zaken en Werkgelegenheid”), has the power to levy fines of €12000 per violation.

This alert has been provided by the BAL Global Practice group and our network provider located in the Netherlands. For additional information, please contact your BAL attorney.

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