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VISAS

COMPARED: Germany’s Chancenkarte vs. Austria’s Red-White-Red card for skilled non-EU workers

In their race to recruit expert workers, Germany and Austria have recently announced overhauls to the visas skilled non-EU citizens can get. Germany’s Chancenkarte or 'opportunity card' and Austria’s 'Red-White-Red' card both aim to make it easier for skilled non-EU workers to take up jobs in the two countries. But how do they compare?

Is it possible to get a working holiday visa in Switzerland? Photo by ConvertKit on Unsplash
One reader recommends mapping out which visa to apply for and when, before you ever arrive. Photo by ConvertKit on Unsplash

The skills shortages in Germany and Austria have become recent and urgent priorities for both governments. At least 124,000 jobs need filling in Austria and the government estimates the actual need could be double that number. Germany’s Labour Ministry estimates it currently needs to recruit around 400,000 foreign workers a year – just to keep up.

As two German-speaking countries, Germany and Austria are competing for a lot of the same skilled talent. So aside from the other aspects of living in either country – which one is offering a better visa regime?

Here, it depends a lot on your situation and priorities. As an example, each country’s EU Blue Card scheme works a little bit differently. Germany’s generally requires a higher minimum salary than Austria’s. But Germany’s also makes getting permanent residence later a little bit easier – so potential applicants have to consider some trade-offs.

READ ALSO: Germany or Austria: Where is it easier to get an EU Blue Card?

The new German Chancenkarte, or ‘opportunity card’ – how it’s set to make looking for work in Germany easier

For those who aren’t necessarily eligible for an EU Blue Card in Germany or Austria, other types of work or jobseeker visas exist.

Foreign specialists looking for a job in Germany typically need a job offer related to their professional qualification, and the German employment agency must approve the job offer. Applicants older than 45 must also have an annual salary of at least €46,530 (2023 values) – if they are coming to Germany for the first time. Even this minimum salary is lower than the threshold needed for an EU Blue Card in Germany.

But what if you don’t have a formal job offer?

The current traffic light government of the Social Democrats (SPD), Greens, and liberal Free Democrats (FDP) wants skilled people to also be able to come to Germany to look for work. The Chancenkarte – set to pass the Bundestag in the next few months – is designed to help non-EU nationals do this on a points basis.

German Bundestag

The German Bundestag is set to pass the new “opportunity card” or Chancenkarte – in the next few months, allowing some skilled workers to come to Germany to look for work even without a job offer. Photo: Felix Mittermeier/Pixabay

To be eligible for it, applicants have to broadly fulfill three out of these four conditions – meaning that applicants could still be considered for the Chancenkarte if they don’t have a formal job offer and are still missing one of these:

  • A university degree or professional qualification
  • Professional experience of at least three years
  • German language skills or previous residence in Germany (higher language skills give more points)
  • Under 35 years-old

The Chancenkarte thus differs from the current jobseeker visa, which lets people come to Germany to look for work if they have:

  • a qualification recognised in Germany and a practice permit for a regulated profession
  • proof a German language skills (typically to B1 level)
  • proof of ability to pay living costs

Designed to be more flexible, in the right circumstances, a future Chancenkarte holder could end up including a young person who has no university degree but both language skills and work experience. The German employer may be able to then hire this person, if they can work out a plan that allows the employee to upgrade their qualifications accordingly for the German job market.

Other future Chancenkarte holders might also include someone who doesn’t yet speak German but who is young with both a university degree and job experience, or a recent graduate with no experience but has appropriate language skills.

The government is looking to give Chancenkarte holders the ability to look for a job in Germany for one year. That’s longer than the current jobseeker visa’s six-month term. Holders are also allowed to engage in part-time or trial employment, allowing the employer to get to know the potential employee before hiring them on full-time.

READ ALSO: How to apply for Germany’s new ‘opportunity card’ and other visas for job seekers

Austria’s “Red-White-Red” card – the advantages for certain professions

Because Germany’s Chancenkarte is still in the draft law phase – even if expected to be approved soon – we know a lot more about the specifics of Austria’s Red-White-Red card.

Firstly, Germany’s Chancenkarte is designed for flexibility and is intended to allow potential skilled workers to come to the country even if they don’t have a job offer. By contrast, most applicants for an Austrian Red-White-Red card must have a job offer. Austria’s Red-White-Red card is also more specifically targeted, maintaining different points schemes for different types of skilled workers. 

Furthermore, Austria’s point system for the Red-White-Red card gives additional advantages to graduates in STEM subjects like math, engineering, natural sciences or technology – if they are applying under the “Very Highly Qualified Workers” scheme of the Red-White-Red card.

At the same time, a Red-White-Red applicant in a “shortage occupation,” may find it slightly easier than other applicants to get enough points to qualify for a Red-White-Red card. Shortage occupations include many types of experts who will have had a high level of academic advanced education – like engineers or physicians. But many shortage occupations in Austria also include skilled workers with vocational training, such as roofers, masseuses, bakers, and carpenters. Some shortage occupations are Austria-wide, while others are region-specific. You can find the full list at the available links.

Most non-EU applicants for Austria’s points-based Red-White-Red card will need to secure a job offer before getting the card, unlike with Germany’s planned Chancenkarte. Photo by Tima Miroshnichenko from Pexels

Certain “Other Key Workers” may also be able to apply for a Red-White-Red card, provided they have enough points, no equally qualified registered jobseeker at the Public Employment Service can be placed, and they are paid a minimum monthly salary of €2,925. Certain seasonal workers can also apply if they’ve worked for at least seven months of the last two years in that occupation and have at least A2 level German. These people also need job offers.

The only potential Red-White-Red applicants who don’t need job offers are self-employed key workers and start-up founders. Both of these applicants though, need to prove a minimum level of capital, amongst other requirements.

Successful applicants for a Red-White-Red card may then work in Austria for up to two years, at which point they may apply to extend their work permission through a Red-White-Red Plus card, which gives the holder unlimited access to the Austrian labour market that isn’t bound to any specific employer.

READ ALSO: How Austria is making it easier for non-EU workers to get residence permits

German – and English – language skills: How the Chancenkarte and Red-White-Red value languages

The other big difference between the German Chancenkarte and the Austrian Red-White-Red revolves around the points awarded for German or English skills.

In general, Austria’s Red-White-Red tends to require a lower level of German language skills in order to achieve points in an applicant’s favour. For example, applicants in shortage occupations will get five points for the most basic level of German – A1. That increases to 10 points for A2 and 15 points for B1 – to a maximum possible 15 points from German language skills.

By contrast, the current draft plans for the German Chancenkarte would require an applicant to have C1 German – the second-highest possible level – to get maximum points under language skills. Even B2 German – an upper intermediate level where speakers can begin to make advanced arguments – only yields a Chancenkarte hopeful partial points.

A German for Dummies language book sits atop a desk next to a pen and a cup of coffee. Photo by Jan Antonin Kolar on Unsplash

Getting points for language skills is generally easier under Austria’s Red-White-Red card system than Germany’s proposed Chancenkarte. Photo by Jan Antonin Kolar on Unsplash

Furthermore, Austria places English language skills on a mostly equal footing with German language skills – with basic A1 English being enough to get some workers partial points under the Austrian Red-White-Red scheme. A skilled worker looking to apply under Red-White-Red who can speak both English and German at a B1 level would already achieve the maximum number of points an applicant can get from languages under the Austrian Red-White-Red system.

By comparison, the German government has not announced plans to give out points under the Chancenkarte system specifically for English language skills, even if some applicants will be able to get enough points to get one even without speaking German at a high level. We should stress though, that the German Chancenkarte legislation is still in the draft phase and could change in some ways before it’s passed.

Flexibility and language trade-offs

The German Chancenkarte may ultimately end up being a more flexible option for skilled workers who want to come to Germany first before they commit to any one particular employer. It may also end up being more favourable for people who don’t come from the shortage professions that Austria is specifically targeting, for example. By contrast, getting a Red-White-Red card in Austria almost always requires a specific job offer.

Yet some applicants who snag a job offer may find it easier to qualify for Austria’s Red-White-Red card if they have a lower level of German language skills – particularly if they can speak English – which Austria’s points system values in a way that Germany isn’t considering.

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WORKING IN GERMANY

What’s considered a good salary for foreigners in Hamburg?

The bustling port city of Hamburg is a popular choice for foreigners looking to settle in Germany. But what kind of salaries can they expect - and how high is the cost of living?

What's considered a good salary for foreigners in Hamburg?

With its meandering waterways and elegant boulevards, Hamburg is a German city like no other. Situated just a few miles inland on the river Elbe, the city is steeped in maritime history, with a bustling trade economy that dates back to medieval times.

These days, however, the Hanseatic city is known for different things: a rich culinary culture, a thriving arts scene, and the electrifying atmosphere of the Reeperbahn, where tourists and locals rub shoulders in bustling bars and theatres.

With so much to offer, it’s no wonder that Hamburg remains one of the top destinations that foreigners in Germany choose to make their home. 

Almost a quarter of Hamburgs 1.8 million residents are foreigners, with around 400,000 non-Germans currently living in the city. Meanwhile, 34 percent of the population have a migration background, giving the city a truly international feel. 

In terms of the economy, it also happens to be one of most affluent cities in the country, with employees there enjoying salaries that are well above the average for Germany. 

As well as prominent German employers like Lufthansa and Techniker Krankenkasse, English-speaking foreigners can also find opportunities at international firms like Google, Airbus and Hapag Lloyd.

Here’s what kind of salaries to expect in Hamburg and how it compares to the rest of Germany. 

What’s the average and median wage in Germany?

According to data published by Germany’s statistical office (Destatis), the average monthly salary across Germany in 2023 for full-time employees was €4,479. This corresponds to an annual salary of approximately €53,748 before tax.

The average is calculated by adding up all of the individual values and dividing this total by the total number of values.

Another way to look at this is through the median. It is calculated by taking the ‘middle’ value, the value for which half of the salaries – in this case – are larger and half are smaller. This is often thought to give a more realistic picture.

A jogger in Hamburg.

A jogger in Hamburg. How prepared are German cities for rising heat? Photo: picture alliance/dpa | Marcus Brandt

According to career portal Stepstone’s 2024 report, the median gross salary in Germany is around €3,645 monthly, which works out at around €43,740 per year before tax.

But salaries in Germany can differ significantly depending on where you live. More than 30 years after reunification, for example, there is still a major divide between the eastern states, where salaries are lower, and the western states, where salaries tend to be higher.  

READ ALSO: What’s considered a good salary for foreigners in Frankfurt?

What salaries can foreigners expect in Hamburg?

For foreigners looking for job opportunities in Hamburg, the good news is that the city state boasts one of the highest median salaries in the country.

In fact, when it comes to all the Bundesländer – or federal states – Hamburg lands in top place. 

According to a recent analysis from Stepstone based on data from November 2023, the median salary in Hamburg is €49,700 per annum. This equates to a pre-tax income of around €4,140 per month.

Stepstone also tracked the salaries of different kinds of workers, from skilled workers to those without academic qualifications.

The 2024 report tracked a median salary of €57,500 per annum for so-called academics, or those with university degrees, while the median for less qualified workers was €43,250 annually. 

People in management positions in Hamburg earned a healthy median salary of €81,500 – the highest in the country for this type of role. Skilled workers, meanwhile, scored a median annual salary of €44,000. 

In another study carried out by apprenticeship portal Azubiyo and based on 2021 data, Hamburg also emerged as the state with the highest average salaries.

According to Azubiyo, the average worker in the Hanseatic city-state takes home a gross salary of €5,209 per month, equating to €62,508 per year.

Which jobs pay the most and the least?

As you might expect, the port city of Hamburg is still heavily influenced by its maritime past, with shipping and logistics still playing an important role in the economy.

However, things are shifting fast, and these days employees are likely to find a wealth of opportunities in aircraft engineering, renewable energy, tech and IT and media in Hamburg – with tech and engineering jobs commanding the highest salaries of all.

READ ALSO: The best-paid jobs you can get without a university degree in Germany

According to Azubiyo’s data, air traffic controllers take home the highest pay packets, with workers in this field earning gross salaries of between €6,000 and €8,000 per month. 

Marketing specialists are also in high demand, with this group of workers taking home anywhere between €4,100 and €7,500 per month on average.

Hamburg's Elbphilarmonie

Hamburg’s iconic Elbphilarmonie building in Habour City. Photo: Photo by Jonas Tebbe on Unsplash

In the IT branch, project leaders can expect salaries of between €4,000 and €6,200 per month, while consultants command average monthly salaries of €3,900 to €5,600.

Shipping merchants can also do relatively well in this harbour town, with gross salaries in this field ranging from €2,600 to €4,000 per month.

On the lower end of the scale, meanwhile, are hospitality workers such as bartenders and waiters. Wages here start at the €12.41 per hour minimum wage, which equates to around €24,600 per annum or €2,050 per month. 

However, with more experience or in slightly more senior roles, salaries in this sector can range between €27,300 and €35,600, according to Stepstone.

What’s left of my German salary after tax?

One important thing to consider when looking at your earning potential in Germany is just how much of that salary you’ll actually be able to keep.

Salary offers from companies will typically tell you your gross income (Bruttolohn), but you’ll also need to calculate your net income (Nettolohn), which is the amount you take home after tax and deductions.

Germany’s tax rate starts at 14 percent for people earning just over the €11,784 threshold, but most full-time workers can expect a tax rate of between 25 and 42 percent on earnings over the threshold. 

For context, a rate of 30 percent is applied to salaries of around €36,000 per year, while the top rate of 42 percent is applied to salaries of around €66,000 per year and above. Parents and married couples get some tax breaks. 

READ ALSO: How to understand your German tax bill

You’ll also have to pay social security contributions, which are split equally between you and your employer.

In 2024, the rate 18.6 percent for pension contributions, 14.6 percent for health insurance, 3.4 percent for long-term care insurance and 2.6 percent for unemployment insurance. Again, you’ll be expected to pay half of this.

A person types on a calculator.

A person calculating their taxes. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

If this all sounds like way too much mental arithmetic, an online tax calculator can help you sort your Nettolohn from your Bruttolohn in seconds. 

Any extra income you make on top of your wage must also be declared to the tax office and you have to pay tax on it.

Is the cost of living high in Hamburg?

Working in this vibrant port city does come with a downside: the relatively high cost of living.

Like pretty much of all of Germany’s metropoles, prices for things like rent, transportation and eating out skew higher than in the rest of the country.

READ ALSO: Which German cities are the most expensive for residents in 2024?

All in all, the cost of living is 11.5 percent higher than the national average, according to figures from the German Economic Institute (IW)

However, Hamburg is far from the most expensive city in Germany, landing in seventh place in the recent IW study. 

In this year’s Mercer Cost of Living survey, meanwhile, Hamburg came fifth out of eight German cities deemed to be among the 100 most expensive in the world.

For a more detailed breakdown of what to expect, cost of living site Numbeo has tracked data from users and other sources to trace the prices of everyday goods and services in Hamburg.

They found that a single person faces monthly living costs of around €1,075 in Hamburg, excluding rent, while a family of four needs around €3,660 per month to keep their heads above water.

Compared to Berlin, prices for everyday goods are around 4.7 percent more expensive. However, this excludes rental costs, which are currently around 14 percent cheaper in Hamburg than in the capital. 

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