Key Points:
- As of January 1, 2021, new minimum wages apply for EU Blue Card and Red-White-Red Cardholders
- Minimum wage levels increase based on a specific category
- Minimum wage requirements only apply to new applications submitted on January 1, 2021, or later
- Wage requirements do not apply to existing cardholders of pending applications as of January 1, 2021
- Employers must compensate their employees in EUR and in 14 installments each year
- Salaries must also meet collective bargaining agreement rates, if applicable
- New monthly income requirements also apply to dependents
Overview
Effective January 1, 2021, minimum salary levels have increased for some Red-White-Red Cardholders and EU Blue Cardholders.
What are the Changes?
Minimum salary levels have increased nationwide for the following categories:
- Red-White-Red Card (key employee, over 30): EUR 3,300 per month
- Red-White-Red Card (key employee, under 30): EUR 2,775 per month
- Red-White-Red Card (graduate from an Austrian university): EUR 2,497.50 per month
- EU Blue Card: EUR 4,684.22 per month
Who is Affected?
The changes apply to applicants for new permits in the categories above who are applying on or after January 1, 2021. The new minimum wage requirements do not affect foreign nationals who already held a Red-White-Red Card or an EU Blue Card before January 1, 2021. Additionally, applications in the affected categories that are pending as of January 1, 2021, are not subject to the new minimum wage levels.
Some categories are not affected by the new minimum wage requirements, including Short-Term Work Permits, Short-Term Secondment Permits, the Red-White-Red Card for professionals in shortage occupations, and EU Intracompany Transferee (ICT) permits. Applicants and permit holders in those categories must meet the salary rate for the position’s applicable collective bargaining agreement if applicable. Salary rates vary based on the industry and the worker’s experience and qualifications.
Minimum wage requirements also apply to dependents. Typically, an average income of EUR 1,578.36 per month is required for a married couple. The monthly income requirement increases by EUR 154.37 for every dependent child.
What Should Employers and Applicants Know?
Employers must pay their employees in 14 payments each year. The mandate also applies to local hire permits.
Employers must compensate their foreign nationals in EUR regardless of exchange rate fluctuations and payroll location.
