IMPACT – MEDIUM

What is the change? Germany has announced annual adjustments to salary thresholds for EU Blue Card applicants representing a 1.7 percent increase over last year.

What does the change mean? Employers must meet the higher minimum salaries for EU Blue Card applicants beginning Jan. 1.

  • Implementation timeframe: Jan. 1.
  • Visas/permits affected: New and renewal applications for EU Blue Cards.
  • Who is affected: Companies sponsoring non-EU nationals for EU Blue Cards.
  • Impact on processing times: No impact.
  • Business impact: Companies will have to factor the new salary amounts into their budgets.
  • Next steps: Employers should be sure they are compliant with the new salaries for new and renewal EU Blue Card applications starting Jan. 1.

Background: The 2015 minimum gross annual compensation for EU Blue Card applicants will be €48,400, increased from €47,600 in 2014. In shortage occupations, the 2015 salary threshold will be €37,752, up from last year’s minimum of €37,128.

BAL Analysis: This is an annual indexing of salaries that employers should budget for. Employers who meet the thresholds do not need to obtain approval by the Federal Employment Agency. Applications in shortage occupations usually require approval, except when the foreign employee holds a German university degree.

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.

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