EU Blue card salary minimums set to increase

IMPACT – MEDIUM

What is the change? The salary threshold for EU Blue Card holders has increased.

What does the change mean? The minimum gross annual salary for non-shortage occupations will increase to €78,336 (from €73,998). For shortage occupations (which are mostly in the information technology field), the minimum salary will increase to €62,669 (from €59,198).

• Implementation time frame: Sept. 27.
• Visas/permits affected: EU Blue Cards.
• Who is affected: Luxembourgian companies sponsoring non-EU nationals on EU Blue Cards.
• Business impact: Businesses may see a slight increase in labor costs.
• Next steps: Applicants for new and renewal EU Blue Cards must meet the new salary levels.

Background: EU Blue Card applicants in Luxembourg must have a post-secondary degree and at least five years of relevant professional experience. Companies employing EU Blue Card holders will be required to pay the minimum gross salary of at least €78,336 unless the employee is working in an identified shortage occupation, in which case the salary minimum will be €62,669. The list of shortage occupations includes mathematicians, actuaries and statisticians; system analysts; software developers/web and multimedia developers/applications programmers; software and application developers; database designers and administrators/systems administrators; computer network professionals; and database and network professionals.

Analysis & Comments: This marks the first time that Luxembourg has announced changes to EU Blue Card salary minimums since December 2017. The new salary levels represent an increase of nearly 6% over the previous thresholds. Employers should be sure to account for the new salary levels when planning their budgets.

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