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Labor Migration – Current Western Balkans Regulation

Just in time for the beginning of the year, there are innovations that must be taken into account when calculating wage tax and reporting social security contributions.

With regard to labor migration in Europe, the following change or extension of the Western Balkans regulation has resulted: Citizens from the Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia) have been able to obtain approval from the Federal Employment Agency to take up employment in accordance with § 26 para. 2 Employment Ordinance. This regulation was initially valid until December 31, 2020. The Western Balkans Regulation has been used extensively by employers to attract workers from the Western Balkans. This regulation now has been extended to December 31, 2023 so that companies can continue to recruit workers from the Western Balkans. An important criterion at this point is the approval of the Federal Employment Agency. The latter must agree to the hiring because it checks whether German employees are available for the respective job and whether the same employment conditions as for Germans exist. This ordinance came into force on 01.01.2021.

(Sources: https://www.arbeitsagentur.de/datei/dok_ba146772.pdf)

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