The Highly Skilled Migrant (HSM) scheme offers a streamlined route for hiring non-EU professionals, but one of its most favorable aspects compared to the EU Blue Card is the lower reduced salary threshold—a rule designed to make it easier to employ young, highly educated talent.
Below, lays out how the reduced threshold works, who qualifies, and what to watch out for when applying this rule.
What is the reduced salary threshold?
The Netherlands uses three salary thresholds as a proxy for “highly skilled migrant” residence status: persons aged 30 and older, persons younger than 30, and the reduced salary threshold. Each year, the Immigration and Naturalisation Service (IND) updates these minimum gross monthly salary levels.
The two regular thresholds are relatively high, reflecting senior or experienced roles. However, to support recent graduates and younger professionals, the IND applies a reduced salary threshold under certain conditions.
In practice, this lower level is several hundred euros less per month than the standard threshold, allowing employers to hire promising talent at an earlier career stage without breaching immigration rules.
Who qualifies for the reduced threshold?
The reduced threshold is specifically available to candidates who:
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Have recently completed a bachelor’s, master’s, or PhD degree at a Dutch higher-education institution OR
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a master’s degree at an eligible* foreign university OR
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have held of a residence permit in the Netherlands for research purposes according to Directive (EU) 2016/801, AND
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Apply for a Highly Skilled Migrant residence permit within three years of their graduation or PhD completion.
This three-year rule is central. It means the reduced salary level remains valid regardless if another type of residence permit is held in the meantime.
Once eligibility is confirmed, the reduced salary threshold remains valid as long as the holder keeps a valid Highly Skilled Migrant residence permit without any residence gaps, even when changing employers.
It is important to note that after the period of three years after graduation has ended, the reduced salary threshold does no longer apply if the holder of the HSM permit decides to change residence purpose to a different type of permit, even when later returning to HSM status.
* For graduates from abroad, eligibility depends on whether the educational institution (general ranking or by subject) appears in the top 200 of at least two out of three recognised global university rankings (the Times Higher Education, QS World University Rankings, and Academic Ranking of World Universities). The IND uses these rankings to determine whether a foreign degree qualifies for the same reduced salary level as a Dutch diploma.
What about the orientation/search year?
Many international graduates use the orientation/search year (zoekjaar) permit to explore the Dutch labor market after finishing their studies. At any time during the permit validity or after it ends, they can often transition directly to a Highly Skilled Migrant permit with the reduced salary threshold, as long as the application is filed within three years of their graduation or PhD completion.
Importantly, the reduced salary threshold continues to apply after the search year has expired—as long as the new HSM application is submitted within the three-year window following graduation.
Please note that in a letter to parliament from July 2025 the Dutch government has announced measures which aim to strengthen the knowledge economy and innovation while reducing overall migration to the Netherlands. One of the possible measures is a time-limitation for the use of reduced salary thresholds (e.g., up to 3 years after graduation or before age 30). At the moment this measures has not been implemented yet, but please be aware that changes may be expected in the future.
Why the Reduced Threshold Matters
For employers, the reduced salary threshold can make a significant financial difference when hiring early-career talent, for example in technical, scientific, or digital roles. It supports a smoother transition from education to the workforce, helping Dutch companies retain talent educated in the Netherlands.
From an employee’s perspective, the reduced threshold opens a clear and affordable route to stay and work in the Netherlands, turning their academic experience into a professional future.
Conclusion
The reduced salary threshold is one of the most effective tools for hiring international graduates in the Netherlands at an affordable salary.
It is important to note that hiring any HSM requires recognized sponsorship status with the IND. Making use of a reliable Employer of Record (EOR) with recognized sponsorship status can provide a (temporary) solution.
