Many companies in Germany are looking for skilled workers. To attract them from abroad, the federal government is planning a special measure
The skilled trades are critical of planned tax incentives for foreign skilled workers. Holger Schwannecke, Secretary General of the Central Association of German Skilled Trades, told the German Press Agency that the burden on labor in Germany is far too high, which is mainly due to social security contributions and taxes, which are among the highest in the world. “Employees finally need to get more net from gross. From the skilled trades perspective, however, it is not expedient to favor individual groups here.”
Rather, relief is needed across the board. “To do this, long-overdue fundamental reforms must be initiated. Unfortunately, this has been neglected once again,” said Schwannecke, referring to the growth package planned by the federal government.
Federal Minister of Economics Robert Habeck defended planned tax incentives for foreign skilled workers, also with a view to the international competition situation. The measure would close a “large skills gap,” the Green politician said at the start of his summer trip on Monday in Stuttgart. “We see that other European countries grant such tax breaks for skilled workers when they come to the country.”
According to the federal government’s “growth initiative”, newly immigrated skilled workers will be able to exempt 30, 20 and 10 percent of their gross wages from taxes in the first three years. A lower and upper limit for the gross wage will be defined for this exemption. The effect of this measure will be examined after five years. The plans have been criticized by trade unions, among others.
Source: Stern
