Germany: Minimum Salary to Increase for Certain EU Blue Card Holders in January 2021

November 9, 2020 Lucy Halse

Key Points

  • Minimum salary requirements will increase for shortage and non-shortage occupations in 2021
  • The changes affect EU Blue Card holders who receive their cards after January 1, 2021 or whose contract start date is on or after January 1, 2021
  • Minimum salary requirements will increase to €56,800 for non-shortage occupations
  • Minimum salary requirements will increase to €44,304 for shortage occupations
  • Employers should consider the wage increases when planning their budget for 2021

Overview

The minimum salary threshold for EU Blue Card holders will increase in shortage and non-shortage occupations beginning January 1, 2021.

What are the Changes?

Across all occupations, minimum salary requirements will increase by approximately three percent. Minimum salary requirements will increase from €55,200 to €56,800 in January 2021 for non-shortage occupations. For shortage occupations, minimum salary requirements will increase from €43,056 to €44,304.

Who is Affected?

The new minimum salary requirements affect individuals who are applying for a new or renewal EU Blue Card on or after January 1, 2021. The minimum salary requirements do not apply to individuals who received an EU Blue Card prior to January 1, 2021.

The changes apply to applications submitted after January 1, 2021 and to pending applications submitted before the end of 2020 with a contract that begins on or after January 1, 2021. The changes do not apply to current EU Blue Card holders who received their cards in 2020. 

What Should Employers and Applicants Know?

German employers should plan their budgets accordingly based on the 2021 minimum wage requirements. Businesses may also encounter a slight increase in labor costs.

We have advised applications submitted through December 31, 2020 to comply with the new minimum wage requirements.


Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional.

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