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IMPACT – MEDIUM
What is the change? The salary threshold for EU Blue Card holders is scheduled to increase in January.
What does the change mean? The minimum gross annual salary for non-shortage occupations will increase to €52,000 (from €50,800 in 2017). For shortage occupations, the minimum salary will increase to €40,560 (from €39,624 in 2017).
Background: EU Blue Card salaries are indexed annually. 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.
BAL Analysis: The new salary levels represent about a 2.4 percent increase over this year’s thresholds that employers should factor into their 2018 budgets.
This alert has been provided by the BAL Global Practice group and our network provider located in Germany. For additional information, please contact your BAL attorney.
Copyright © 2017 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.
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