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IMMIGRATION

EXPLAINED: The 2022 salary requirements for Germany’s EU Blue Card

The salary requirements for EU Blue Card visa holders in Germany have fallen slightly this year. Here's a look at what you need to know.

Published: 10 January 2022 17:33 CET
Updated: 15 January 2022 10:10 CET
People walk in Cologne.
People walk in Cologne. Many third country nationals want to join the EU Blue Card scheme to live and work in Germany. Photo: picture alliance/dpa | Oliver Berg

Many third country nationals want to apply for the EU Blue Card visa to work in Germany, or another EU country. 

The residence permit is aimed at attracting and enabling highly qualified third-country nationals to live in the EU. Authorities in Germany also want to plug the shortage of skilled workers in many employment sectors.

It comes with lots of benefits, including options to move around more freely within the EU, the right to to request and bring family members to the country they live in, and shortcuts for applying for permanent residency. 

But there are high salary thresholds that can make it difficult for people to get their hands on this visa. 

This year, the new salary requirements mean a few more people may be able to take advantage of the Blue Card scheme. 

When applying for a Blue Card in Germany in 2022, the applicant has to earn a minimum gross salary (before tax) of €56,400 – down from €56,800 in 2021. 

In so-called shortage occupations (Mangelberufe), where there is a high number of unfilled positions in Germany, the minimum gross salary is €43,992 – down from €44,304 in 2021.

Shortage occupations include employees in the sectors of mathematics, IT, natural sciences, engineering and medicine.

READ ALSO: EXPLAINED: How to get a ‘Blue Card’ to live and work in Germany

Britt Posey-Thomas, co-founder of Munich-based site Jetztpat, which helps foreigners settle into life in Germany, told The Local that the lower salary requirements were a sign that the new government is trying to attract more talent from around the world. 

“While expats – and their employers – can usually expect a 1-5 percent annual increase in the minimum salary for a German EU Blue Card, this year the threshold decreased by 0.7 percent.

“Part of the decrease reflects the national salary changes due to the pandemic, but it can also be seen as proof that the new administration is working hard to attract talent from around the world to come to Germany.”

Posey-Thomas said the decrease may seem small, “but we believe the impact will be felt by companies and individuals”.

“Out of the residence title options, Blue Cards give expats the most agency – accelerating the process towards permanent residency,” she said.

“What we’ve seen at Jetztpat, from both our personal and client experiences, is that this transition from visa to permanent settlement helps expats feel not only empowered but more invested in their life in Germany.

“Without the worry of having a visa, they are freer to live on their own terms, switching jobs, moving cities, or even founding their own companies. These benefits are invaluable to individuals who want to make Germany their home for the long term.”

In 2020, the salary requirement for EU Blue Card holders was €43,056 for those in shortage occupations, and €55,200 for workers in other industries and occupations. 

In 2020, the average income in Germany was €47,700 before tax, which corresponds to a monthly gross salary of €3,975 for a full-time job (35 to 40 hours a week is common for full-time in most companies). But there are large differences in earnings between different regions of the country.

REVEALED: How much do employees really earn across Germany? 

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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. 

Published: 2 May 2024 12:26 CEST
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 

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