Wednesday, December 25, 2024

European Union – Employee Benefits & Compensation

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The minimum annual salary needed to hire highly qualified
third-country workers in Luxembourg was significantly reduced on 1
July 2024.

The law of 4 June 20241 simplified and
improved the conditions of residence for highly qualified
third-country workers who want to move to Luxembourg for work under
an EU Blue Card (see our Newsflash from 1 July 2024).

In line with this law, and to also attract more foreign talent
to Luxembourg (while guaranteeing the implementation of Directive (EU) 2021/18832 on the
conditions of entry and residence of third-country nationals for
the purpose of highly qualified employment), Luxembourg has
significantly reduced the required minimum salary level for these
workers to be able to obtain an EU Blue Card in Luxembourg (as a
reminder, this salary level had recently been increased – see
our Newsflash of 25/03/2024).

The Grand Ducal regulation of 20 June
2024,
3 published on 27 June 2024, (the
Regulation) stipulates that the threshold for
minimum salary now cannot be lower than the gross average annual
salary, which is currently set at EUR 58,968 by the Ministerial regulation of 15 March
2024
4.

Therefore, there is no longer a distinction between employment
industries for highly qualified workers and the two previous
thresholds of 1.2 and 1.5 times the gross average annual salary
have been abolished.

The new thresholds are as follows:

In addition to this level of remuneration, to be considered as a
highly qualified worker, the third-country national must have an
employment contract with a minimum duration of six months and must
either have the higher professional skills required to exercise
their non-regulated profession or fulfil the conditions required to
exercise a regulated profession, as detailed in the employment
contract.

The Regulation also specifies that when the Ministry of
Immigration carries out an evaluation on whether the holder of the
EU Blue Card has sufficient personal finances for the purposes of
withdrawal of or refusal to renew the EU Blue Card, they must also
take into account the potential contributions of the
applicant’s family members to household income.

These new thresholds and the provisions on the evaluation of a
highly qualified worker’s personal finances are applicable from
1 July 2024.

Footnotes

1. Law of 4 June 2024 amending the amended law of 29
August 2008 on the free movement of persons and
immigration.

2. Directive (EU) 2021/1883 of the European Parliament
and of the Council of 20 October 2021 on the conditions of entry
and residence of third-country nationals for the purpose of highly
qualified employment, and repealing Council Directive
2009/50/EC.

3. Grand Ducal regulation of 20 June 2024
amending:

  1. the Grand Ducal regulation of 5 September 2008 defining
    the criteria for financial resources and accommodation provided for
    by the law of 29 August 2008 on the free movement of persons and
    immigration;

  2. the Grand Ducal regulation of 5 September 2008
    implementing certain provisions concerning the administrative
    formalities provided for by the law of 29 August 2008 on the free
    movement of persons and immigration;

  3. the Grand Ducal regulation of 26 September 2008
    determining the minimum salary level for a highly qualified worker
    by implementing the law of 29 August 2008 on the free movement of
    persons and immigration.

4. Ministerial regulation of 15 March 2024 setting the
average gross annual salary as defined by the Grand Ducal
regulation of 26 September 2008 determining the minimum salary
level for a highly qualified worker by implementing the law of 29
August 2008 on the free movement of persons and
immigration.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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