New Skilled Immigration Act: Overview of the Major Changes

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Germany has recently reformed its Skilled Immigration Act, hoping to attract more foreign workers from third countries. The aim is to plug the growing number of gaps in its job market. The number of open positions in the German economy has been steadily increasing over the last years, reaching a peak of nearly two million at the end of 2022. The Skilled Immigration Act (‘Fachkräfteeinwanderungsgesetz’), which regulates the work-related settlement of nationals of third countries (non-EU and non-EFTA, or in short, non-EEA residents) in Germany, was introduced in March 2020. After just three years in force, this piece of immigration law has undergone a major overhaul between November 2023 and June 2024 to make the German labour market more accessible to workforce from outside the European Economic Area (EEA).

Overview

The old immigration process for skilled workers from third countries wishing to move to Germany had often been criticized for being slow, rigid and too bureaucratic. Fundamental improvements were needed if Germany wanted to compete with the world’s top immigration destinations such as Canada. Therefore, at the end of 2023 the Skilled Immigration Act was redesigned and now (as of June 2024) all of it amendments are in full force and effect. Some of the major issues that were addressed in the new Act include:

  • Requirements imposed on EU blue card applicants were reduced (e.g., salary thresholds, recognition of professional qualifications, duration of the employment contract, etc.), the list of shortage professions was expanded while changing employers and bringing family members of EU Blue Card holders to Germany was made a lot easier.
  • More value is now given to practical work experience than it has been in the past. That is, anyone with at least two years of relevant professional experience and a vocational qualification or a degree recognized in the country of issuance is allowed to come to Germany as a skilled worker. Furthermore, anyone matching the description above wishing to pursue a non-regulated profession no longer needs to have their professional qualifications recognized in Germany.
  • In cases when recognition of foreign professional qualifications is necessary (e.g., for regulated professions), it is sufficient if it is initiated once a foreign worker started working in Germany. Under the old Act, a recognition procedure had to be initiated before applying for a visa.
  • Skilled workers are allowed to pursue any qualified work not just the work they have been trained for.
  • Where possible, the German language proficiency requirements were reduced as they are substitutable with good knowledge of English.
  • A point system for economic immigrants was introduced (a so-called ‘Chancenkarte’) that opens the doors to foreigners from outside the European Economic Area wishing to move to Germany for job hunting.
  • Foreign students, trainees and foreign jobseekers are allowed to work more hours than before.
  • Short term employment of foreigners from third countries is allowed in industries facing chronic shortages of workers.
  • It is now possible to change the purpose of stay in the residence permit without having to leave Germany.

Timeline as It Happened

The first set of changes to the Skilled Immigration Act came into force on November 18, 2023 while the next two batches of amendments followed in March and June 2024. The stepwise introduction of changes spread over a period of seven months has allowed participating authorities enough time to adapt to the new requirements.

Amendments in Effect since November 2023

The first stage encompassed lowering of the requirements for granting an EU Blue Card and improving the mobility and family reunification conditions for EU Blue Card holders, dropping the requirement that third-country professionals may only work in their narrow field of expertise, and simplifying the procedures for employing foreign drivers.

Changes Regarding the EU Blue Card

The EU Blue Card Germany is a type of limited residence permit for gainful employment issued to the academics from third countries to take up highly skilled jobs primarily in shortage occupations (e.g., STEM occupations). The main modifications regarding the EU Blue Card included:

  • The salary threshold for granting the EU Blue Card in Germany was in November 2023 reduced from the previous 58,400 euros per year to 43,800 euros for regular professions (in the meantime as salaries are growing the threshold for 2024 was raised to 45,300 euros). For the so-called bottleneck occupations and recent university graduates the new salary threshold in 2024 is 41,042 euros (it was 39,683 euros until the end of 2023) instead of the previous 45,552 euros per year under the old regulation.
  • The EU Blue Card Germany was made available to a wider range of foreigners. Examples include:
    • Young university graduates from third countries who graduated within the last three years are eligible for the EU Blue Card if they find a job in Germany that pays them at least 41,042 euros a year (as of June 2024).
    • Foreign IT specialists from third countries are eligible for the EU Blue Card even if they have no university degree but can demonstrate that they have at least three years of relevant work experience in the IT industry. Just like in the previous example, the lower salary threshold of 41,042 euros a year is applied.
    • The number of shortage positions for the EU Blue Card was greatly expanded to include professions other than just medical doctors and STEM occupations (i.e., science, technology, engineering and mathematics). Some examples include vets, pharmacists, nursing professionals, physiotherapists, teaching professionals, architects, chemists, social welfare managers, manufacturing and distribution managers, etc. For a complete list check this link. For these jobs the lower salary threshold of 41,042 euros a year is applicable.
    • Holders of the EU Blue Card of another EU country are allowed to stay in Germany for up to 90 days without a German visa provided their stay is related to their employment in the country that issued their EU Blue Card. Moreover, foreigners staying in another EU country for a minimum of twelve months as EU Blue Card holders are allowed to move from the country that initially granted them their EU Blue Card to Germany without a visa and are eligible for the EU Blue Card Germany.
  • Shorter contract duration, i.e., a binding six-month employment offer (instead of previously twelve-month) is enough to qualify for the EU Blue Card.
  • Smoother family reunification, i.e., family members of the German EU Blue Card holder who have previously lived with the EU Blue Card holder in another EU country are allowed to move to Germany to join the EU Blue Card holder who in the meantime moved there with their residence permit issued by another EU member state. To be issued a residence permit in Germany, the proof of sufficient living space and the proof of sufficient financial resources is no longer required.

Other Changes Effective since November 2023

  • Every third-country national who meets all the requirements for a skilled worker as defined in the new Act is entitled to a residence title in Germany.
  • Professionals from third countries are no longer restricted to seeking employment only in the narrow field of their expertise as they are now allowed to pursue any qualified job.
  • Employment of foreign drivers from third countries was made much easier and faster as they no longer need to prove that they possess a European driving license and necessary language skills while an often lengthy priority check was also abandoned.

Changes in Force since March 2024

The key areas of the Skilled Immigration Act that were revised in March 2024 included the rules for the recognition of foreign qualifications while giving more weight to practical professional experience, and conditions for the employment of skilled workers, students & trainees and short-term employment.

Recognition of Foreign Qualifications

  • Skilled workers from third countries who have at least two years of professional work experience are no longer required to have their vocational qualification or degree recognized in Germany as long as their qualifications are recognized in the country where they were acquired (see also the section ‘Practical experience’ below). However, this automatic acceptance of foreign qualifications only applies to persons wishing to pursue a non-regulated occupation.
  • A recognition partnership between the prospective foreign employee and the German employer was introduced to speed up the employment and recognition process in cases when recognition is necessary (e.g., for regulated occupations). Based on this agreement, it is possible to issue a work visa even before starting the recognition process as the parties oblige themselves to actively pursue the recognition procedure once the foreign worker entered Germany (in the past, the recognition procedure had to be initiated before applying for a work visa). Other conditions that have to be met for the visa to be granted are an employment contract, a university degree or a vocational qualification requiring a minimum of two years of training which are recognized by the country that provided such education, and German language skills at least at level A2. The corresponding residence permit is issued for 12 months, extendable to a maximum of 36 months.
  • As part of the process of recognition of foreign qualifications, the residence permit for the purpose of participating in a qualification programme in Germany is granted for up to 24 months (previously a maximum of 18 months) when issued for the first time. It is possible to extend the residence permit for another 12 months, up to a maximum duration of 36 months. Holders of this residence permit are allowed to work for up to 20 hours per week as compared to 10 hours per week under the previous legislation.
  • Undergoing a ‘skills’ analysis may sometimes be required to establish equivalence between the foreign and German qualification. For such purpose a foreigner may be issued a visa for undergoing a ‘skills’ analysis in Germany and granted a residence permit for up to six months. For this type of visa, a German proficiency level A2 or higher is required.

Relaxed Conditions for Skilled Workers

  • Practical experience: As mentioned above, professional work experience is now appreciated more than before. Foreign workers from third countries who have a vocational qualification with a minimum of two years training or a university degree recognized by the country where such qualification or degree was obtained and two years of work experience in a related field are regarded as foreign professionals eligible for skilled worker status. Recognition of foreign qualifications in Germany is not required. This provision applies to all non-regulated professions.
  • IT specialists: A university degree is not required from IT specialists who possess at least two years of professional experience in the IT branch (the former requirement was three years). Moreover, they do not have to demonstrate their language proficiency.
  • Nursing assistants: Healthcare professionals from third countries who have less than three years of regulated nursing training are allowed to work in Germany as nursing assistants provided they have a nursing qualification recognized in Germany or nursing training from Germany. Besides that, third-country foreigners who have completed nursing training in Germany are entitled to a residence permit for jobseekers (since June 2024 known as a job search opportunity card discussed below) that is issued for 12 months, extendable for another 6 months.
  • Family reunification: Spouses and children of foreign professionals from third countries wishing to join their partners/parents no longer need a proof of sufficient living space when applying for a visa. Moreover, foreign workers from third countries can be joined by their parents as well as their parents-in-law as long as their spouse is also a permanent resident of Germany.
  • Settlement permit: Foreign professionals from third countries who acquired a university degree or a vocational qualification outside Germany qualify for a settlement permit after three years of living and working in Germany (i.e., after three years of holding a residence permit) as opposed to four years under the previous regulation. Those who graduated from a German university or completed a vocational training in Germany are entitled to a settlement permit after just two years (i.e., this regulation remained unchanged). EU Blue Card holders can be granted a settlement permit after 27 months of working in Germany as EU Blue Card holders (previously 33 months) while those who demonstrate good knowledge of German (B1 level) can get it just after 21 months (this remained unchanged).

Expanded Employment Opportunities for Students and Trainees

  • Increasing working hours: Foreign university students from third countries staying in Germany on a residence permit for study purposes are allowed to take up a part-time job of up to 140 full days a year (i.e., 280 half days a year) instead of the previous 120 days a year (i.e., 240 half days a year). This translates to a maximum of 20 working hours per week. Likewise, third-country trainees are also allowed to take up a second job of up to 20 hours per week.
  • Allowing students in preparatory classes to work: Under the new Act, prospective students attending preparatory classes at the university are allowed to work as many hours as regular university students mentioned above.
  • Allowing foreign study applicants to take up a part-time job: Perspective students from third countries staying in Germany on a residence permit issued for the purpose of applying for a university study are allowed to work up to 20 hours a week.
  • Better opportunities for apprenticeship seekers: The upper age limit for third-country foreigners seeking a trainee position in Germany was raised from 25 to 35 years while the minimum German language requirements were reduced from the former B2 level to B1. The residence permit for the purpose of seeking an apprenticeship is granted for a maximum of nine months as opposed to the previous six months and priority check (‘Vorrangprüfung’) when applying for a trainee position was cancelled. Furthermore, potential trainees are allowed to take up a part-time job of up to 20 hours per week as well as a trial job for up to two weeks while seeking an apprenticeship in Germany.

Short-Term Employment

The new Act allows for a short-term employment of foreigners from third countries irrespective of their qualifications. Once the Federal Employment Agency defines the demand-quota for shortage jobs, German employers can apply for work permits for third-country nationals they wish to hire. However, to be granted an approval, certain conditions have to be met: a maximum employment duration of eight months within a twelve month period, a minimum working week of 30 hours, and the employer must cover the workers’ travel expenses and be bound by a collective bargaining agreement while this agreement must also apply to foreign workers.

Changes in Effect since June 2024

Opportunity Card

The most important change that came into force in June 2024 was the introduction of a job search opportunity card (‘Chancenkarte zur Jobsuche’ or in short just ‘Chancenkarte’) with the possibility to apply online (as of June 12, 2024, an online application was not yet available in every country, though). Foreign nationals from third countries who hold a university degree or a vocational qualification that are recognized in Germany are entitled to receiving a job search opportunity card without any further conditions. Others need a certain score to obtain it. But first, in order to be allowed to apply for a job search opportunity card they have to prove they hold a university degree or a vocational qualification which required at least two years of training and are recognized in a country where such education was received (an alternative is a qualification issued by a foreign office of the German Chamber of Commerce) and possess German language skills at level A1 or, alternatively, English language skills at level B1.

Apart from qualification and language skills, points are given for age (the lower the better), professional experience, links to Germany and spouse’s or partner’s employment potential. Six points out of a maximum ten are needed for a job search opportunity card to be granted (*). The card is issued for 12 months and allows the holder to work part-time for up to 20 hours a week besides a maximum of two-week trial employment while looking for a permanent position in Germany. If necessary, the opportunity card can be extended for another 24 months provided the applicant has an offer of qualified employment at the time of expiry.

* It goes without saying that anytime a third-country national is applying for any form of a visa or a residence permit mentioned above, they have to prove they can support themselves financially for the entire duration of their stay in Germany.

The Western Balkans Regulation

Under the old Western Balkans Regulation which expired at the end of 2023, 25,000 workers from Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia were allowed to work in Germany in any non-regulated job. In the new Act, this quota was doubled to 50,000 and the new regulation will be valid indefinitely.

Summary

In the period of November 2023 to June 2024 Germany has implemented a number of legislative changes aimed at attracting skilled foreign workforce from outside of the European Economic Area. The goal is to allow more foreigners from third countries to enter the German labour market and to make their entry process as uncomplicated and smooth as possible so as to meet the growing demand of German employers for qualified workforce. The most important amendments to the Skilled Immigration Act are listed below.

Revised Requirements and Benefits for EU Blue Card Holders

The lower salary thresholds, more occupations included in the scheme and shorter duration of employment contract needed for granting an EU Blue card should help broaden the range of eligible applicants. Holders of the EU Blue Card now enjoy easier employer change requiring only a declaration rather than an application, simplified relocation within the EU and facilitated family unification.

Softer Conditions for a Skilled Worker Status

Anyone who has a vocational qualification requiring at least two years of training or a university degree that are recognized in Germany is entitled to a residence title in Germany. Alternatively, those who hold a foreign qualification recognized by the country where it was earned and, in addition to it, have a minimum of two years of work experience in their specialization should under certain conditions also qualify for a residence title in Germany.

A job that a skilled worker wants to pursue in Germany no longer needs to be strictly tied to their formal qualifications and training. Foreign workers with at least two years of vocational training (or any higher education degree) are allowed to take up a job in any qualified field.

Relaxed Rules for Recognition of Foreign Qualifications

Skilled third-country workers with at least two years of work experience in their profession are no longer required to have their professional qualifications recognized in Germany if they are recognized in the country where they were obtained. The new regulation allows them to pursue any qualified non-regulated occupation.

Professionals from third countries who were offered a job in Germany but need to have their foreign qualifications recognized can apply for a visa before initiating a recognition procedure. Once their visa is approved, they can move to Germany and start working while the recognition is in progress. This is made possible under a recognition partnership which is a written contract between employer and applicant that was introduced in the new Act.

Opportunity Card

An opportunity card (‘Chancenkarte’) is a kind of residence permit for job search that was introduced to encourage more foreigners to come to Germany for job hunting. Everyone who scores a minimum of 6 points out of 10 is entitled to it.

Other Important Changes

Students and trainees are allowed to work more hours, short-term employment in industries experiencing acute labour shortages is now permitted and no qualification restrictions apply, the Western Balkans regulation was renewed and the quota doubled, requirements for employing professional drivers from third countries were simplified, while family unification for people with a skilled worker status was made much easier.

Conclusion

Since the 1960s Germany has been one of the most popular immigration countries in Europe. At the moment, around 5.2 million foreigners are working in Germany but many more will be needed to replace millions of German baby-boomers who are going into retirement. Therefore, over the next decade or so the government plans to attract 400 thousand foreign workers a year to keep the German economy afloat. That would make Germany by far the top European destination for skilled economic migrants from third countries. The recent reform of the Skilled Immigration Act is believed to help achieve this goal.

For more details on how the new Skilled Immigration Act might affect your personal plans visit also other sections of this website discussing specific topics such as immigration, working, studying and pursuing vocational training in Germany.