German Labor Minister Hubertus Heil has expressed skepticism about a proposed tax break for foreign skilled workers, part of a growth package agreed by the coalition government.

The plan, aimed at attracting much-needed professionals to Germany, would allow newly immigrated skilled workers to keep 30%, 20%, and 10% of their gross salary tax-free in the first three years respectively.

Heil, from the Social Democratic Party (SPD), criticized the proposal as 'vague' and warned it could lead to misunderstandings.

The Free Democratic Party (FDP) defended the plan, arguing that tax incentives for highly qualified workers are common in many EU countries.

Opposition parties have strongly criticized the proposal, calling it discriminatory against domestic workers.