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Study: Salary atlas only partially informative regarding the minimum salary of foreign skilled workers
- Isabelle Manoli
- Jun 10
- 4 min read
Behind every successful skilled worker immigration process lies a precise bureaucratic machinery, designed in theory to guarantee fairness. However, in practice, our firm repeatedly witnesses highly qualified talent from third countries and ambitious medium-sized businesses running up against an invisible wall: the wage review by the Federal Employment Agency (BA) . What was intended as a safeguard against wage dumping is increasingly becoming a rigid instrument that ignores the economic realities of Germany. While politicians extol the virtues of a welcoming culture, employment contracts often fail over a difference of just a few hundred euros compared to a statistical figure that barely reflects the diversity of the business landscape . The urgent question arises: in times of acute skills shortages, can we afford to block qualified immigration with inflexible salary regulations? A study shows that the official wage atlas is less informative for answering this question than its application in practice .
The mystery of local custom and Section 39 of the Residence Act
The legal basis for this issue is found in Section 39 of the Residence Act (AufenthG) . This section stipulates that the Federal Employment Agency (BA) may only approve the employment of third-country nationals if the working conditions are no less favorable than those of comparable domestic employees ( minimum wage/salary review ). The legal review follows a clear hierarchy: first, the collective bargaining agreement applies, then the industry minimum wage, and finally the so-called local customary wage . However, this is precisely where the uncertainty begins. What exactly constitutes "local customary" wages? In most cases, the authorities refer to the BA's wage atlas to determine comparative values.
Although the salary atlas is a common tool, its use is by no means mandatory, which often leads to discussions about the actual market reality. It frequently relies on the 25th percentile of the gross salary distribution for a given occupation in a region. This means that the salary of the foreign skilled worker must be higher than the lowest 25 percent of salaries in that specific field. This statistical hurdle sounds fair, but it overlooks a crucial factor: the structure of employers in the region.
The disadvantage for SMEs: When corporations distort the bar
A key problem with current auditing practices is the neglect of company size. Small and medium-sized enterprises (SMEs) often compete directly with large corporations, which, due to their financial strength and economies of scale, can pay significantly higher salaries. When many large companies are located in an employment agency district, they massively inflate the statistical wage level. This effectively forces SMEs to pay corporate-level wages in order to be able to hire a skilled worker from abroad. The data reveals a clear disparity: at the expert level, the median difference in gross monthly salary between SMEs and the overall average is a staggering €255 . In certain professions and regions, this disparity is exacerbated. For example, if an electrical engineering expert is to be hired in Baden-Württemberg, where 62 percent of skilled workers are employed by large companies, the salary gap to the 25th percentile is a staggering €804 . For a medium-sized company, such a difference is often not feasible without disrupting the internal salary structure and jeopardizing workplace harmony.
A plea for modernization and the EU Blue Card as a model
We are concerned that this bureaucratic rigidity particularly affects young professionals with little work experience, whose productivity is initially limited by a lack of language skills. It's paradoxical: in professions with severe shortages, such as automotive engineering or IT, obstacles are being erected that prevent the influx of precisely the talent we most urgently need.
Therefore, we expressly support reform proposals that call for a modernization of wage audits . A transparent and streamlined solution would be the introduction of fixed upper limits, similar to the EU Blue Card . Individual case reviews should be waived for amounts exceeding 50 percent of the contribution assessment ceiling – which corresponds to €4,225 in 2026. A limit of 45.3 percent (approximately €3,828) would be appropriate for shortage occupations and those entering the profession. Only below these thresholds should a detailed review take place, which, however, must then necessarily take company size into account.
Conclusion: Time for a fair salary update
The current system of wage audits, in its present form, often misses its mark. Instead of simply protecting against exploitation, it penalizes SMEs for their naturally evolved salary structures compared to large corporations. This prevents skilled workers from abroad from gaining a foothold where they could often make the greatest impact: in Germany's innovative SMEs. A reform towards fixed salary thresholds and a differentiated consideration of company size is essential to prevent skilled worker immigration from being thwarted by statistical averages.
How VisaGuard supports you
As your specialized law firm for visa law, we guide you safely through the complexities of salary audits. We support companies in providing sound justifications for their salary structures to the Federal Employment Agency and utilize legal loopholes beyond the salary atlas to secure successful approvals, even for SMEs. We fight to ensure that your ideal candidate doesn't fail due to a statistical metric, but can contribute their expertise where it's needed.
