The German federal government is currently planning an amendment to the Residence Act (Aufenthaltsgesetz), which will be of advantage to multinational companies with their seat in Germany as well. This shall considerably facilitate the access of skilled foreign workers to the German employment market. For unskilled and less qualified employees, the existing constraints will remain.

On August, 27, 2008, the German federal cabinet concluded the draft of a Job Migration Governance Act (Arbeitsmigrationssteuerungsgesetz) submitted by the Federal Ministry of the Interior (Bundesministerium des Inneren). The draft envisages, among other things, a lowering of the minimum wage limit for highly qualified employees which is necessary for a settlement permit. Until now a skilled foreign worker had to earn a salary of at least double the contribution assessment ceiling set by the statutory health insurance carrier, that is currently at least 86,400 €, in order to be able to apply for an unlimited settlement permit right from the start. This income limit shall now be lowered to the contribution assessment ceiling of the general pension insurance which is currently 63,600 €.

Before the Act can come into force, the draft has to be submitted for the consent of the Bundestag and the Federal Assembly (Bundesrat). It appears that consent will, in all likelihood, be given, so that the Act can prospectively come into force on January 1, 2009, as currently planned.

These planned amendments shall strengthen Germany as a business location in the international competition for specialists. According to a current survey, Germany currently has a lack of skilled workers which costs billions of euros every year. In order to counter this development, skilled foreign workers, some of which may earn less, shall be able to obtain an unlimited settlement permit right from the start.