SHARE
COPY LINK

IMMIGRATION

How Germany plans to fight worker shortage with new immigration law

A new draft law set to ease immigration rules in a bid to attract foreign job seekers, including giving well-integrated migrants a chance to stay in Germany, has been put forward.

How Germany plans to fight worker shortage with new immigration law
A skilled worker in Fürstenwalde, Brandenburg. Photo: DPA

On Monday, the Interior Ministry submitted the draft bill to the other ministries for consultation. It is hoped the new regulations will fill positions and help fight Germany's extreme worker shortage.

According to the draft, anyone who has an employment contract and a “recognized qualification” may in principle work in Germany in future, the Süddeutsche Zeitung reported on Tuesday.

One of the most significant changes is a bid to get rid of a rule that required bosses to prove that neither a German nor an EU citizen could be found to fill a position before it was offered to an immigrant.

The new law is also set to relax restrictions that gave preference to foreign workers filling up so-called “bottleneck occupations”, jobs that have a lot of vacancies, including in the care sector, the IT industry and electrical engineering. This will open up other industries to skilled foreign workers.

Another proposed change is for skilled workers –  such as cooks, metallurgy workers, builders or IT technicians – to be able to enter the country for six months in order to look for a job in Germany.

SEE ALSO: Germany to ease immigration rules to fight worker shortage

The draft states that “skilled workers can obtain both a residence permit to work and a residence permit to look for a job”. The prerequisite is that they speak German well enough and are able to earn their own living.

The three Ministries of the Interior, Employment and Economic Affairs worked closely together on the draft law.

However, there will almost certainly still be a few requests from other ministries to make comments or change parts of it before it is passed. 

Many critics would prefer a points-based system, already enforced in countries such as Australia, which rates skilled workers and prioritizes who is allowed to enter the country and work.

Industry needs a relaxation of immigration rules

The draft law has come about in a bid to address the shortage of skilled workers in many regions and industries across Germany.

There are currently some 1.2 million open positions, according to Germany’s Institute for Employment Research.

The coalition hammered out a deal in October and aims to pass the law by the end of the year.

Manpower from the bloc of around 500 million people would not suffice to keep the German economy ticking, the coalition noted back in October.

“That's why we need workers from third countries,” Interior Minister Horst Seehofer had told a press conference while detailing the strategy.

Photo: DPA

However, ministers have been keen to stress the continued “separation of asylum and employment migration”, mindful that Germany has been deeply polarized by the arrival of more than a million asylum seekers since 2015.

Industry has long been calling for a relaxation of immigration regulations for qualified employees from non-EU countries. For skilled workers with a university degree, there is already a fairly liberal immigration law. Highly-qualified workers, especially in fields such as maths and engineering, can apply for a so-called Blue Card for at least four years.

SEE ALSO: Where are the vacant jobs in Germany and which industries are most in demand

For those who only have vocational training, however, it has so far been rather difficult.

The sticking point in the draft law for all those who want to work in Germany, however, is likely to remain “the determination of the equivalence of qualifications”, as the text of the law states.

This is because the recognition of foreign vocational training has so far been a laborious process, which is often difficult to achieve from the applicants' home countries.

Flexibility on issues is possible

The draft, however, contains a potential relaxation on this point: “a limited possibility” will be created to have the vocational training which was acquired abroad recognized “under certain conditions” after entry into Germany.

This means that qualified foreigners can enter the country, possibly even start a job – and have their qualifications recognized from their home country while this is ongoing.

Eventually, skilled workers can apply for permanent residence, reported Handelsblatt. But only if they hold a residence permit for four years, are working in a suitable job and have paid into the pensions system for at least 48 months.

However, if their professional certification was completed in Germany, that period is shortened to three years.

The final version of the law is to be presented for approval by the Bundestag will be discussed at a cabinet meeting on December 19th.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

SHOW COMMENTS