Minimum salaries see small increase

IMPACT –  LOW

What is the change? Luxembourg’s minimum gross salary requirements for EU Blue Card holders have risen 3 percent to €71,946 per year. Minimum salaries for third-country nationals in managerial or professional positions have also increased.

What does the change mean? Companies hiring foreign nationals on EU Blue Cards or in managerial or professional positions must meet the new salary thresholds.

• Implementation time frame: Immediate.
• Visas/permits affected: EU Blue Cards, work permits.
• Who is affected: Companies employing third-country nationals on EU Blue Cards or in managerial or professional positions.
• Business impact: Businesses should factor the new salary amounts into their budgets.
• Next steps: Employers must be sure they are in compliance with the new salary requirements.

Background: Under a regulation published June 2, the EU Blue Card gross salary minimum for highly qualified workers is now €71,946 per year.

Luxembourg also raised minimum pay for third-country nationals in managerial or professional positions (i.e., for occupations listed in groups 1 or 2 of the International Standard Classification of Occupations). Minimum gross pay for third-country managers and professionals rose to €57,557 per year. Pay thresholds for both EU Blue Card holders and for third-country nationals in managerial and professional jobs are calculated based on the average annual salary for full-time employees.

BAL Analysis: Employers must be sure they are in compliance with all new salary requirements when hiring non-EU nationals. Applications will not be accepted if minimum salary requirements are not met.

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

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.