Introduction

In Germany, the market for information technology and telecommunications is in excellent condition. Industry expectations were more than met in 1999 with turnover exceeding the DM 200 billion mark for the first time for a growth rate of 7.5 percent for the year. Growth indicators are still pointing upward because the German telecommunications industry in particular is one of the most innovative in the world. This high-tech field is growing twice as fast as Germany's total economic performance. At the same time, the number of jobs being generated in these areas has increased at a similarly dramatic pace. For example, the number of people working in the computer industry in Germany has increased from less than 100,000 to some 433,000 today. Between 30,000 and 40,000 new jobs are being created each year.

In the meantime, all international newspapers have reported that Germany's booming information and telecommunications industry is short-handed - by about 75,000 pairs of hands - and the German government is determined to not let this labour shortfall jeopardise the industry's future. Speaking of the shortage of qualified IT specialists in Germany at the CeBIT electronics show in February, Chancellor Gerhard Schröder said: "It is necessary to bring foreign IT specialists to Germany". He explained that he referred specially to IT professionals from India and eastern Europe. Meanwhile, the government sketched plans for the creation of a new category of work permits for engineers, programmers and other information technology specialists. The necessary regulations are scheduled to go into effect this summer. This initiative is to be coupled with an increase in the government's support for programs to train Germans in information-related fields.

The German Government has prepared the ground for foreign IT specialists to come to Germany ("Green Card Initiative"). In a first step, starting August 1, 2000; 10,000 IT professionals can apply for a work permit. After 10,000 work permits have been issued a monitoring procedure is to be carried out to determine if there is further need for computer specialists. If there is a further need, the program will be extended to another 10,000 persons. Working and salary conditions for these foreign specialists must be the same as for domestic employees

Given that 714 'Green Cards' have been issued in only two-and-a-half weeks it can be said that the government initiative has been well received. The IT association Bitkom predicted that the first 10,000 work permits for IT experts would be exhausted by the end of the year.

IT companies, associations, and experts are praising the unbureaucratic approach being taken in processing applications. Work permits are being issued within a day of required documents being presented to the employment offices. As of this writing(August 26, 2000), around 7,900 applications have been received by the job placement centre at the Federal Employment Agency. This does not include applications received by around thirty further job placement centres on the Internet.

Details

Work permits may on principle only be granted if no preferential workers in the joint EU/EEA labour market are available. Employers are therefore advised to report their personnel requirements to the Employment Office - if they have not already done so - in order to be able to begin granting the work permits rapidly after the change of the law enters into force.

Computer specialists with university, polytechnic, and comparable qualifications, e.g. bachelor's or master's degrees, will be allowed to work in Germany for a limited period of time. This arrangement will apply to all job applicants from non-EU countries. There will be no limitation to persons from any specific countries.

Over the medium term the need for IT specialists is to be satisfied on the domestic labour market. The period of employment for top-level computer specialists from abroad is to be limited to three years with the possibility of getting an extension for up to two more years, i.e. for a maximum total of up to five years. Permits may be extended beyond five years if necessary at that time.

There is no limitation on the number of computer specialists a company can hire. Only your qualifications count.

The IT specialists in question are to be granted residence permits. Under German law residence permits entitle holders (as long as all the other pertinent provisions of law governing foreign residents have been complied with) to bring their families to Germany right away or, failing that, to bring them to Germany at a later point in time.

You need a confirmed appointment in the form of a preliminary work treaty to apply for the visa. To get the visa for application interviews in Germany, you need a written invitation to the personal application interview from the company. This visa should be issued within a few days. So it is not possible to get a green card first and then come to Germany and apply for a job.

Theoretically you do not require minimum work experience requirement for getting a green card, but applicants should have a work experience of at least two years. The companies are looking for real experts, not for freshers, and the German Institute of Employment will normally not give work permits to freshers.

The applicant needs university degree (such as bachelors or masters) in an IT-related field and place of residence outside the European Union / European Economic Area in order to qualify for this green card. Foreign students graduating from German universities or polytechnics (Fachhochschulen) in courses specializing in the area of information and communication technology can also apply for this green card. If foreign applicants do not have a relevant higher education qualification, they can also obtain a work permit if on the basis of their outstanding specialist knowledge they are guaranteed an annual salary of at least DM 100,000 gross (approximately 50,000 US Dollars).

It is not essential to have the knowledge of German language, but in general it is a plus. For a lot of jobs excellent command of German is needed, for other jobs the German language is not so important. Applicants need a good knowledge in German or English.

Green card holder has to pay the same taxes as a normal German resident.

Workers are being sought in the occupations of information and communication technology, for example for jobs as

  • system, Internet and network specialists
  • software, multimedia developers and programmers
  • developers of circuits and IT systems and
  • specialists for IT consulting.
A challenging working environment, dealing with interesting projects, an attractive income, a high quality of life security in public places, an outstanding cultural life Europe in driving distance.

Germany Greencard Vs. US H1 Visa/GreenCard

"Greencard" - the American term has been widely adopted for the proposed work permits. Please note that the word "Greencard" for German work permit is used. It is not same thing as USA "Greencard". It is somewhere between US H1 visa and US Green card.

German Green Card US H1 Visa US Green Card
Valid for maximum 5 years. Valid for maximum 6 years. Valid indefinitely.
Employment offer needed. Employment offer needed. Sponsored either by family member or employer(once in US on H1.)
After 2 years, employer can be changed without new visa. Applicant can become self-employed. Tied to employer. Need new H1 whenever employer is changed. Not tied to employer.
Family members can accompany immediately. Family members can accompany immediately. If family members exist before getting green card, they also get green card. Else have to wait for years.
Unemployment benefits available after 1 year. No unemployment benefits. No unemployment benefits.
Family members can get work permit after 2 years. Family members don't get work permit. Need separate H1. Family members can work if they have green card.

Blue Card
Bavaria state in Germany is planning to issue their own "Blue Cards" for software professionals. The Bavarian Blue Card does not limit the work permit to 5 years. It is more flexible than the Green Card, because the Bavarians will issue such a Blue Card, if the situation of the labour market requires it. So there are chances to get a Blue Card, even when all Green Cards are issued. On the other hand, the Blue Card holder has to leave the country, when he looses his job and stays unemployed. So Blue Card holders do not profit from the German unemployment insurance.

Comparison of Germany and United States by someone has lived both in Germany in United States. Please note that immihelp.com is not responsible for accuracy of the information there.

Find Job in Germany

The Federal Employment Agency will have sole responsibility for the placement of IT personnel from abroad. It will simplify procedures for this purpose. With the approval of the Federal Employment Agency companies are to be able to look for top-level specialists on their own. Everything possible will be done make the procedures as unbureaucratic, rapid, and transparent as possible. . Local offices of the Federal Labor Agency will be required to decide on applications within a week of receipt.

On the 2nd of March 2000 the Federal Employment Agency created an Internet hotline for the advertisement of jobs (under "Personalbedarf und Ausbildungsplätze" at http://www.arbeitsamt.de). The German government calls upon interested companies to post their job offers on the Internet under the heading "Aktion IT 2000" or to report them directly to the responsible employment offices. Contact persons at the employment offices will provide support to companies in solving their IT personnel problems. The Federal Employment Agency held a meeting of relevant experts on March 10, 2000 to specify the amount of personnel that will be needed and to exchange information on procedures.

Following web sites may help you to find a job in Germany:

Please note that none of the employement agencies, web sites would charge any money to the employees(candidates). The appropriate amount would be charged to the employer upon successful placement with them in Germany. Employer would also pay for flight to Germany and provide temporary accommodation and assist you finding apartment etc. They will name a responsible tutor in their company who looks after you in the first days.

The German employer has to convince the German Institute of Employment that you are a real expert. So they need your complete application documents, including all diploma, testimonials, certificates, references etc. Please send hardcopies (xerox, photocopy), not the originals. These hardcopies need NOT be testified by a notary.

Sample Resume(CV) in Microsoft Word format.

Living & Working in Germany

Germany is an ideal place to work: internationally respected quality level of products and services, high living standard, attractive salaries, large rights for employees, no hire and fire, a climate not as hot as in India and not as cold as in Canada, stable democratic system, a lot of rights for foreigners, one of the best welfare systems in the world, a friendly population, and, and, and ... . Why not go there and see it yourself?

There are already a lot of your fellow countrymen living in Germany So you will not be left alone! You will soon get used to life in Germany.

Work and Employment
Preliminary Remarks

In this section we can only give you an overview. Please ask your employer in Germany in good time about the details. German labour law also applies to foreign employees during their employment within the territory of the Federal Republic of Germany. When you work in Germany, you are placed in the same position as German employees in respect to labour law, and you also have recourse to the works/office council or the labour courts in the case of differences of opinion with your employer.

Tariff Contract

Tariff contracts play a major role in German employment relationships. They are negotiated from time to time between the social partners in the various branches of trade and industry. Tariff contracts are a component part of the employment contract; they apply equally to both employee and employer. In particular, they also contain agreements on minimum wages and salaries for employees in the relevant branch of trade and industry or works/office.

Employment Contract

As a rule, the employment relationship is specified by a written employment contract. In accordance with the basic principle of equal rights for men and women, employers must not fundamentally exclude either men or women from appointment to a job. When recruiting, they are required to confine their questions to those for which the answer is of legitimate interest with regard to the foreseen employment relationship. For example, questions about an intended marriage or pregnancy are not permitted. On the other hand, the employee must voluntarily point out illnesses and physical impairments which affect the performance of the intended activity. In works/offices which have a works/office council, the agreement of the works/office council is required for every appointment. All works/offices with more than five employees (eligible to vote for the works/office council) must have a works/office council. In the public services, the staff council performs the corresponding tasks.

Rights and Duties

The employee is obliged to perform the agreed duties. In case of doubt, the content and scope of his/her rights and duties shall be in accordance with the valid terms of the contract for the contractual relationship, general laws or the tariff agreement. On his side, the employer is obliged to pay for the services performed in accordance with the agreement.

Wages and Salaries

Wages and salaries are not usually paid in cash. The employee should therefore open an account with a bank or the Postbank. All banks, savings banks and the Postbank carry out transfers abroad.

Working Hours

Please note that not only the commencement of work and, if applicable, the end of the employment relationship, but also the weekly and daily working hours are specified in the employment contact, in the tariff agreement or by a works/office agreement. The usual working hours in the works/office shall be deemed to be agreed in cases of doubt.

Holiday Entitlement

Employees over the age of 18 receive at least 18 working days holiday per year. The minimum amount of holiday is increased in accordance with a tariff agreement, age and/or years of service in the company. As a rule, employees receive between 25 and 30 working days holiday per year. The employee does not normally have any holiday entitlement during the probationary period. Moreover, the employer and employee must come to agreement on each occasion as to when holiday may be taken. The employee must not undertake any other paid work during his/her holiday.

Sickness

As a rule, the employee has a legal entitlement for the payment of wage or salary to continue for a period of six weeks in case of sickness. The employee must provide evidence in the form of a doctor's certificate of his/her unfitness for work by the third day of the sickness at the latest. He/she is obliged to inform the employer of his/her unfitness for work and the expected duration of the sickness immediately. This may also be done by telephone or by a message sent via a relative or colleague. The same applies if the employee falls ill during his/her holiday.

Ending the Employment Relationship

Limited period employment relationships come to an end without any further action being taken, i.e. without giving notice, when the agreed period of time has elapsed.

Social Security for the Employee
Social Insurances

Foreigners in Germany are placed in the same position as the German employees with regard to social insurance. As a rule, the employer must guarantee that they are insured against sickness and unemployment and entered into the pension scheme upon commencement of the employment relationship. The employer and employee each pay half of the social insurance contributions. The employee's contributions are deducted from his/her gross pay and transferred, together with the employer's contribution, to the social insurance institution. The employer is furthermore obliged to insure you against accident with his trade association; he alone pays the contributions to the accident insurance.

Statutory Health Insurance

The statutory health insurance schemes have the task of maintaining the health of the insured, to restore it in case of sickness or to improve the state of health of the insured. Higher-paid employees may take out private health insurance instead of joining a statutory health insurance scheme. The financial expenditures of the statutory health schemes are covered by the contributions of their members. The amount of these contributions is based on the incomes which are subject to contributions. The statutory health schemes do not charge any additional contributions for family numbers who are co-insured. After the period of entitlement to continuation of payment of wages has expired, the insured are entitled to sickness benefit if they are unfit for work due to sickness or are being treated in a care or rehabilitation institution. The amount of sickness benefit is currently 80 per cent of the regularly attained earnings from work and is calculated by calendar days. Sickness benefit is paid for a maximum duration of 78 weeks for one and the same illness.

Statutory Pension Insurance

Employees subject to obligatory social insurance are insured in the national pension insurance scheme for the duration of their employment. This also applies to foreign employees. However, they are only entitled to benefits if they have completed the required waiting periods (legal rights to future pension payments) or when the Federal Republic of Germany has concluded a social insurance agreement with their country of origin.

Statutory Unemployment Insurance

The unemployed are employees who are temporarily not in an employment relationship. If an unemployed person cannot find acceptable work immediately, then, under certain circumstances, he/she will receive unemployment benefit or unemployment assistance in place of the lost earnings. The pre-condition for this is that the person concerned is available to the labour market and has been employed subject to obligatory contributions for 360 days during the last three years. More information can be obtained from your local employment office.

Statutory Accident Insurance

All employers are obliged to insure their employees against all types of accidents at work with their trade association. The group of persons insured includes all employees who are in an employment, service or trainee relationship, irrespective of the amount they earn. The employees are insured against accidents at work which occur during and as a result of their employment. This includes accidents occurring on the way to and from the place of work and typical occupational diseases. The accident insurance assures the injured employee, if he/she can no longer, or only to a limited extent perform his/her work, that he/she will receive a pension for occupational invalidity and, in the case of his/her death, that his/her immediate family will receive a pension for surviving dependants and a contribution to funeral expenses. The payments are calculated according to the insured's earnings in the previous year. The invalidity pension is determined in accordance with the degree of disability. A full pension is paid in the case of total disability to work. It amounts to two thirds of the last year's earnings from work. Foreign employees who are entitled to take up work in the Federal Republic of Germany can become entitled to these benefits in the same way as Germans. Periods of insurance or employment abroad can be taken into consideration under certain circumstances.

Income Tax

All employees resident in Germany must pay tax on their earnings in accordance with German law. The income tax rates are progressively graded according to the corresponding wage or salary. The income tax class entered on your income tax card is determined by your marital status and employment relationship. Apart from this, the number of your children is also taken into consideration. If one is a member of a recognized religious community, then a church tax is deducted in addition to the income tax. In the Federal Republic of Germany these amounts of between eight and ten percent of the income tax are to be paid. The so-called solidarity surcharge has also been imposed in Germany for some years. This goes towards financing the economic development of the new federal states. The solidarity surcharge currently amounts to seven and a half per cent of the income tax. This is reduced somewhat if children are registered. The employer deducts the income tax from the wage or salary and transfers it to the tax office. The same applies to the church tax and the solidarity surcharge. So-called occupational expenses and special expenses can be set against incomes when determining the taxable income. The tax office also grants flat rate allowances according to marital status and age. Furthermore, allowances are also granted for children. Upon request, married couples may be assessed for tax jointly; in this case their taxable incomes are added together and each half of this amount is subject to the appropriate tax rate (splitting). This applies irrespective of whether one or both of the married persons have incomes. After the completion of a calendar year, employees have to submit their income tax declaration by a specific date (i.e. by 31 May of the year). This is used by your local tax office to make your tax assessment.

Accommodation and Apartments

As in all other industrial countries, you generally need to budget 25 - 35 per cent of your monthly income in Germany for accommodation. Obtain information about renting a room, apartment or house, and also about so-called additional rent charges (heating, electricity, water and sewage). The landlord often asks the tenant for a deposit amounting to two or three months rental or a bank guarantee. Private accommodation agencies charge an agency fee amounting to two or four months rent if they are successful in finding you accommodation. However, as a precautionary measure, you should not make any payments in advance.

In general, the cost of living is lower in the 5 Eastern German states (Bundesländer) than in the other Bundesländer. And life in the big cities like Frankfurt, München or Hamburg is much more expensive than the life in smaller cities or villages. The main reason is the high rents for the flats in the big cities. The food prices do not differ much. Another reason for the differences: In the big cities you have a lot of opportunities to spend your money!

Once You Have Found Work in Germany

You are, on principle, subject to the German obligatory social insurance; if you lose your job, you can apply for unemployment pay or unemployment assistance under specific circumstance, i.e. after completing the eligibility periods; you may join a trade union and participate in the elections for the works/office council.

Foreigners who have found work and accommodation in the Federal Republic of Germany must complete the following formalities with the town or community in which they live (please take your passport or personal identity card with you):

  • You must register yourself at the local registration office.

  • Then you can apply to your local aliens office for a residence permit (also take your confirmation of registration and your employment contract with you for this).

  • Apply to the town or community council income tax card issuing office for an income tax card (take your confirmation of registration, your residence permit and proof of the number of members of your family with you for this).

  • The employer registers you with the pension and unemployment insurance schemes. If your health insurance is with the Allgemeinen Ortskrankenkasse (AOK) (General Local Health Insurance Scheme) the employer will also register you there. However, if you are insured by a different health insurance scheme or a private health insurance company then you must register there yourself and give your employer evidence of your registration.

  • If you are still covered by a health insurance scheme in your country of origin but are about to take up employment in Germany, then ask your health insurer what steps you have to take so that your insurance protection remains unbroken.

  • Please give your income tax card and health insurance certificate to your employer. Taking up employment without an income tax card is not permitted and is prosecuted as so-called "moonlighting". As an employee in the Federal Republic of Germany, you must also have a so-called "social insurance identity card", your employer will apply for this.

Salaries in Germany

Like in every country and in every profession, the salaries depend on qualifications, professional experience, management level and performance. IT specialists from foreign countries should not only look at salaries but at the tasks or the reputation of a future employer as well. Working in Germany is a mark of quality all over the world. Working for a German employer will push your career forward in any case, whether you earn DM 100,000 more per annum or not. It is always a good strategy to have a foot in the door first, then to convince by performance and then require a salary increase. The end of the 6 months trial period is a good occasion for this.

Subsequent you find a salary table which shall give you a first orientation about salaries in Germany for different experts.

Gross salary per annum in DM (1 $ = 2 DM = 1 EUR)
professional group minimum medium maximum
application developer 43000 76300 104800
CAD/CAM specialist 49000 85900 117700
database administrator 60100 94600 129400
database developer 53200 92200 126200
DTP specialist 45200 80300 110200
internet developer 57400 98600 134800
IT consultant 62200 105700 144400
IT controller 54800 94600 129400
IT trainer 63800 108100 147700
multimedia specialist 46300 81900 112300
network/ system administrator 52700 91400 125200
network engineer 60100 102600 140100
SAP consultant 65900 111300 151900
SAP developer 56400 97000 132700
sales manager 58000 95000 135000
software developer 55000 85000 120000
support/ user helpdesk 47900 84300 115600
system analyst 55900 96200 131600
system engineer/ manager 61200 104200 142300
telecommunications specialist 55300 95400 130500
web designer 59600 101600 139100
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