German Law and Policy Changes in 2022 that Expats (and Employers) Should Know
The new year ushers in change, not only for individuals but for governments around the world. In Germany, there are a number of changes on the docket for 2022 with the new administration putting its first plans in place. Jetztpat has compiled a list of the 5 German law and policy changes in 2022 that expats and employers should know.
Top 5 German Law Changes Expats Should Know in 2022
Salary Threshold for German EU Blue Card Has Decreased
No, it’s not a typo. As of January 2022, the minimum salary to obtain a Blue Card for non-shortage occupations in Germany has been lowered to 56,400€ (from 56,800€ in 2021). Historically, the minimum salary has increased year over year, but with the new German administration’s dedication to globalization – and need for at least 400,000 skilled foreign workers annually to keep up with economic demand – this is a move to support foreign hiring.
For shortage occupations for which there are a higher number of vacant positions (including some IT specialists), the salary limit is 43,922€ in 2022 (down from 44,304 in 2021).
Tax-Free Allowance Increases
The tax-free allowance has increased in January 2022 by 204€ to 9,948€ for individuals; this amount is doubled to 19,896€ for married couples or registered partners.
Further, when it comes to taxes, the date to file returns has been extended by three months to May 31, 2022. To learn more about taxes in Germany, we recommend visiting Taxfix.
Minimum Wage will Increase – Twice
On January 1, 2022, the minimum wage (Mindestlohn) was raised from 9.60€/hour to 9.82€/hour. This number will get a hike again in the middle of the year on July 1 to 10.45€/hour.
Digital Sick Notes Sent to Employers
In a move to further digitalize common processes, German doctors will now automatically inform both the health insurance and the individual’s employer in case of sick leave.
Historically, individuals were given three sickness certificates (Krankschreibung): one for themselves, one to provide to insurance and one for the employer. Now, these notes will be sent to the latter two digitally—saving time, paper, and unnecessary bureaucracy.
[Expat Tip: As with any digitalization, it will take time to get all general practitioners up to speed, so be sure to ask your doctor if they will share the certificates on your behalf. Also, make sure you read your employment contract to see if you need to share your certificate on the third day or before.]
Plastic Bags Banned, Pfand Extended and More
There are a number of initiatives in place to support climate efforts in Germany. One of the most-noticeable will be the ban on retailers giving out plastic bags to consumers from January 1, 2022.
The deposit system for bottles and cans (Pfand) will be expanded to additional products in 2022. From January 1, all single-use cans and bottles up to three liters (except milk) will be subject to a 25-cent deposit, meaning beer, mineral water, soft drinks and mixed drinks with alcohol. While this is an additional cost at the checkout, the goal is to have all of these bottles returned (and recycled!) for a refund.