IMPACT – MEDIUM

What is the change? The salary threshold for EU Blue Card holders will increase on Jan. 1, 2021.

What does the change mean? The minimum gross annual salary for non-shortage occupations will increase to €56,800 (up from €55,200). For shortage occupations (mostly in the information technology field), the minimum salary will increase to €44,304 (up from €43,056).

  • Implementation time frame: Jan. 1, 2021.
  • Visas/permits impacted: EU Blue Cards.
  • Who is impacted: German companies planning to hire high-skilled workers based on the EU Blue Card regulations.
  • Business impact: Businesses may see a slight increase in labor costs.
  • Next steps: Beginning Jan. 1, employers must meet the new salary minimums for both first-time and renewal EU Blue Card applicants. The new salary thresholds will not apply to workers who received their existing EU Blue Card before Jan. 1, 2021.

Background: Salary thresholds for EU Blue Cards in Germany are based on the assessment ceiling of the German pension scheme. This figures increase every year and were recently announced for 2021.

Analysis & Comments: The 2021 salary minimums represent a roughly 3-percent increase over the current thresholds. German employers should take note of the change and adjust their budgets if necessary.

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