Nations around the world are reforming their immigration rules to attract foreign talent, reduce net migration, and promote local employment. Their target: the minimum income, a crucial condition for qualifying for a work visa. Should this threshold be increased or lowered? How do employers view these state reforms? Let's take a closer look at the countries that have recently changed their minimum income scales for expatriates.
United Kingdom
Announced since the end of 2023, the increase in the minimum salary threshold for skilled foreign professionals has been in effect since April 4, 2024. They must now earn at least £ 38,700, up from £ 26,200 before the reform—an increase of 48%. This decision is part of a series of measures passed by the former Sunak government, aimed at reducing net migration. The rise in the minimum income threshold is more moderate in the healthcare sector, increasing from £ 26,200 to £ 29,000. However, many employers across various sectors state they cannot meet the new government scales.
It's worth noting that since April 11, the minimum income required for family visas has increased from £ 18,600 to £ 29,000 pounds (21,100 to 34,720 euros), and it will gradually rise to £ 34,500 and then to £ 38,700 by mid-2025. According to former Home Secretary James Cleverly, the plan could reduce net migration by at least 300,000 people this year. The new government has not reversed these measures but announced on July 22 the launch of Skills England, an agency aiming to improve training for Britons to reduce dependence on foreign workers. However, Prime Minister Keir Starmer reiterated that immigration contributes to the English economy.
Mauritius
Announced in June, the 2024-2025 budget plans new adjustments to attract investors and skilled foreign professionals. One notable change is the reduction in the salary threshold required for Occupational permits (professional occupation permits, allowing one to live and work in Mauritius for ten years). The required salary has decreased from MUR 30,000 to MUR 22,500 (from 590 to 440 euros).
On January 1st, the minimum wage increased from MUR 11,800 to MUR 15,000 monthly, then to 17,000 rupees in July. This significant rise is lauded by the Confederation of Private Sector Workers. However, other employers describe the announcement as "political," impacting their finances. They argue that increasing the minimum wage could slow hiring. Some companies employing foreign workers anticipate recruitment difficulties, as the increase affects all workers, including foreigners. The government has announced financial assistance for companies effective from January to December 2024; the amount varies depending on the company category. Some, however, feel that the duration and amount offered will not compensate for the minimum income increase.
Australia
Since July 1, the income threshold for temporary skilled foreign workers has increased from AUD 70,000 to AUD 73,150 (42,340 to 44,250 euros). These changes do not affect applications sent before July 1. They also do not apply to current holders of temporary visas. The new scale aligns with this year's market annual salary rate. Further details will be provided by the government later.
Also, as of July 1, the national minimum wage has increased to AUD 24.10, a 3.75% rise. Despite a decrease in inflation, the Fair Work Commission concluded in its annual report that the rising cost of living had hit low incomes the hardest. This independent body is responsible for the annual wage review and also handles disputes between employers and workers. The increase in the national minimum wage affects all workers. However, the minimum wage in Australia can vary from one state to another.
Luxembourg
Similar to the American Green Card, the European Blue Card allows foreigners to live and work in the EU. Each member state sets its minimum salary threshold freely. In March 2024, Luxembourg raised the annual minimum salary to 88,452 euros for a skilled worker (up from 84,780 euros in 2023). This is a modest increase for highly skilled foreigners working in sectors needing non-European labor (as designated by the government): the salary threshold rose to 70,762 euros per year, up from 67,824 euros in 2023. In 2023, Austria lowered its salary threshold from 66,593 to 45,595 euros annually to attract more foreign talent. Germany's new immigration law also lowered the salary threshold for obtaining the European Blue Card: 39,682.80 euros per year (down 43.3%) for foreigners in rare professions; 43,800 euros per year (down 50%) for other professions.
Sweden
On February 15, 2024, the Minister for Migration, Maria Malmer Stenergard, announced stricter immigration economic rules to deter less low-skilled workers. Since 2022, the government, supported by the far-right, plans to increase the minimum salary required for non-European workers. They currently must be paid at least 27,360 kronor (2,340 euros) to apply for a work visa. The reform plans to raise the minimum scale to more than 34,200 kronor (about 2,900 euros), equivalent to the median salary. This follows a previous increase enacted in November 2023. The income thresholds for non-Schengen or European Union nationals had increased from 13,000 to 27,360 kronor (from 1,110 to 2,340 euros).
Employers, particularly in the restaurant and cleaning sectors, have expressed their disapproval as their industries are the most affected by government restrictions. These employers believe they cannot meet the new Swedish standards, arguing that the announced increase in 2024 will harm the economy. Nevertheless, the minister maintains her reform plan, suggesting possible exceptions for low-paid health professionals awaiting diploma recognition (doctors, nurses, etc.). A similar exception might be considered for researchers. The new scale is scheduled to take effect on June 1, 2025.
Belgium
Since January 1, 2024, Belgium has enacted new salary thresholds for single permit holders. This permit allows non-European nationals to work and stay in Belgium for more than 90 days. As of January 1st, the regions of Wallonia, Brussels, and Flanders announced that the salary thresholds for highly skilled workers are now applicable to foreign workers holding a single permit. Permits issued before January 1st will be concerned by the new thresholds. In Flanders, it is set at a minimum of 46,632 euros annually for highly skilled workers. In Brussels and Wallonia, it is set at a minimum of 50,310 euros.
The automatic indexation of foreign talents' salaries to the new thresholds is in place. However, if the indexation does not meet the new thresholds, an Economic Migration Service (Dienst Economische Migratie) should be contacted with the new work contract or amendment. These documents must indeed include the new scales.
