Posted: 19/08/2015 Author: Matthias Heilmann

As of May 2015, the German Employment Agency (ZAV) applies stricter standards for work permit applications regarding the comparability of salaries. Besides having to meet the minimum salary requirement of 8.50 Euros per hour, short-term assignment and local employment contracts must now offer salaries that are within very close range of the respective industry's average salary for German employees with comparable degrees and work experience. Yet, cost of living allowances, hardship payments, rent support, etc. can be included into the salary as long as the payments are regular, unconditioned and monetary (not as vouchers or suchlike).

If the applying company cannot confirm that the foreign citizen is employed under the same conditions than comparable German employees, a labor market test will be conducted; then, the German Employment Agency (ZAV) would examine with a rather lengthy process whether the required conditions apply.

Impact to Employers

When applying for a work permit, the German company has to confirm that the foreign citizen is employed under the same conditions than comparable German employees. If this is not confirmed, the German Employment Agency (ZAV) will examine whether the required conditions apply with a labor market assessment. This would delay the application processing time by several weeks.

Due to the stricter standards, fewer employees will be eligible for work permits. In general, salaries (including additional payments mentioned above) that amount to less than 2.500 Euros per month (gross) may not fulfill the stricter standards. However, exceptions apply (e.g. for trainees), and not all work permit types require these standards, so a preliminary assessment is recommended.

Should you have questions, please do not hesitate to contact:

Matthias Heilmann
Immigration & Account Manager
Santa Fe Relocation Services
Tel: +49 6190 8993 64
Email: matthias.heilmann@santaferelo.com

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