Western Balkans regulation: Federal government reduces quota from 50,000 to 25,000

From January 1, 2027, the Federal Employment Agency (BA) will only issue 25,000 initial approvals per year for employees from Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, down from the previous 50,000. The German government has approved the amendment to the Employment Ordinance. The Federal Council still needs to give its consent. For companies, this means that anyone planning to hire staff from the Western Balkans in 2027 should apply for preliminary approval now and simultaneously check whether the process via [unclear] is possible. Skilled worker immigration is open to them. For most applicants, there is a second option that is not subject to any quotas.

What is the Western Balkans Regulation?

The Western Balkans Regulation is in Section 26 Paragraph 2 of the Employment Ordinance . It has been in force since 2016 and is in conjunction with Section 19c paragraph 1 of the Residence Act provides a special pathway to the German labor market. Nationals of the six listed countries can thus... A residence permit can be obtained for any type of employment, including unskilled work. A professional or academic qualification recognized in Germany is not required.

The regulation is not entirely without prerequisites, however. A concrete job offer is required. The Federal Employment Agency (BA) must then... The authority approves the application pursuant to Section 39 of the Residence Act and conducts a priority check. It also examines whether wages and working conditions are comparable to those of similar domestic employees. The visa must be applied for at the German embassy or consulate in the country of origin. Anyone who has received benefits under the Asylum Seekers' Benefits Act within the last 24 months is excluded.

The regulation has proven successful. According to figures from the Federal Employment Agency (BA), around 546,000 people from the Western Balkan states are currently employed in Germany and subject to social security contributions. Although no qualifications are required, 53 percent of them work at least at a skilled worker level, primarily in construction, logistics, the hospitality industry, and nursing care.

What will change from January 1st, 2027?

Legally, only one number changes: The upper limit in Section 26 Paragraph 2 Sentence 3 of the Employment Ordinance (BeschV) is reduced from 50,000 to 25,000. This reverses the doubling that took place in June 2024. The requirements and procedures remain unchanged. The German government aims to reduce labor migration without proof of qualifications. Qualification-based pathways for nationals of the Western Balkans remain explicitly unaffected.

The proposal is controversial from a technical standpoint. The Federal Employment Agency (BA), employers' associations, and the federal states have spoken out against the halving of the fees. The National Regulatory Control Council also considers the federal government's calculations incomprehensible. It points out that companies will simply find workarounds and switch to more complex procedures, thus shifting bureaucracy rather than reducing it. In our view, the cuts will hit precisely those sectors that are already experiencing the most severe staffing problems.

Important for existing employment relationships: The quota only applies to initial approvals. Those already working in Germany with a residence permit under the Western Balkans Regulation who extend this permit domestically are not subject to the new upper limit, according to the wording of the law.

Why is it getting particularly tight for employers now?

Even the initial quota of 50,000 was insufficient. It was exhausted before the end of 2025, and it will not last until December 2026 either. Approvals are distributed by month and nationality. If the monthly quota for a country is exhausted, the employer initially receives only an interim notification, and the actual advance approval follows later. Applications rejected due to an exhausted annual quota do not automatically carry over to the next year. They must be resubmitted.

If the quota is halved, waiting times and rejections will increase noticeably. Added to this are the well-known bottlenecks in visa appointments in Pristina, Tirana, Sarajevo, Skopje, Belgrade, and Podgorica. In practice, we see that companies plan the start date of a new employee too tightly and then finance an open position for months. Often, an application doesn't fail due to the quota itself, but rather due to details: a job description that is too vague, a salary below the local standard, or a... An employment contract that doesn't match the information in the employment declaration. Such errors cost valuable months in a limited timeframe.

What alternatives do workers from the Western Balkans have?

Many applicants from the region have vocational training or a university degree and don't even recognize this as an advantage. Anyone who can present a qualification that is recognized as equivalent in Germany can work as a skilled worker. Section 18a of the Residence Act (vocational training) or Entry is permitted under Section 18b of the Residence Act (academic education). These pathways are not subject to quotas and generally offer better prospects for Family reunification and permanent residence. Academics with a corresponding salary also come for the EU Blue Card under consideration.

If the recognition process is not yet complete, the recognition partnership offers the following: Section 16d paragraph 3 of the Residence Act offers a good solution: The person is already working in a qualified capacity in Germany and is simultaneously pursuing the recognition procedure. For professional drivers, this also applies to... Section 24a of the Employment Ordinance (BeschV) provides a separate access point. Employers can also use the accelerated skilled worker procedure according to... Use Section 81a of the Residence Act . It costs 411 euros. The German mission abroad should schedule an appointment within three weeks and usually make a decision within a further three weeks.

What should companies and HR departments do now?

The first step is an honest assessment. For each planned hire, it should be clarified whether the candidate possesses a recognized qualification. If so, the path to becoming a skilled worker is usually more predictable than waiting for a place in a quota system. For all others, the application for preliminary approval should be submitted as early and as completely as possible.

For existing employees, timely contract extensions are crucial. In Berlin, this is handled by the... The state immigration office is responsible. A change of employer requires new approval from the Federal Employment Agency (BA) and should never be completed before this approval has been granted.

In this situation, waiting is the most expensive option. Self-administered applications and standard information from the internet can help in simple cases, but they do not assess the chances of recognition or determine which residence permit will be valid in the long term. If a visa is refused, the only remaining options are to appeal to the embassy or consulate or to file a lawsuit. Court . The Berlin Administrative Court has jurisdiction over visa procedures. We support companies and workers in all these steps, from strategy to legal action.

Conclusion

Halving the quota from 2027 onwards does not change the requirements of the Western Balkans Regulation, but it significantly restricts access. Those who act now, prepare applications fully, and explore alternatives such as skilled worker immigration will not lose valuable employees. The Western Balkans Regulation remains an important instrument, but for many applicants it is no longer the only, and often not the best, option.