Your guide to average salaries in Germany

Set realistic expectations for average salaries in Germany. Get an overview of minimum wages in Germany and learn to understand German payslips!

Ellie

8 minute read

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Updated on 29 Aug 2024

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Working

It's tough for new expats to get a real feel for what is considered a good salary. So, with thousands of internationals looking for a job in Germany every year, you're not alone in wondering how to go about negotiating your pay. But knowing the average salary in Germany, the minimum wage and how that relates to the cost of living will navigate you in the right direction.

To save you time, this guide will walk you through all things salary-related.

As of January 1, 2024, the minimum wage in Germany is €12.41 per hour. So, for a full-time worker working a 40-hour week, the minimum salary in Germany is €2,149 per month. In other words, In Germany, the minimum wage after tax is €1,557.

The minimum wage is usually updated around January and July and is expected to increase to €12.82 from January 1, 2025.

The German minimum wage applies to almost all workers above 18, including foreigners, part-time workers, and seasonal workers.

There are a few exceptions when the minimum wage does not apply, including if:

• you're self-employed
• a freelancer in Germany,
• a volunteer
• an apprentice
• it's your first 6 months of employment after a long unemployment period
• your industry has a collective agreement.

The minimum wage is set at a federal level, and if your German employer does not pay you the legal minimum wage, you can either ask your employer or seek advice on your legal rights.

Is there a minimum wage in Germany for students?

Yes! The minimum wage in Germany for (international) students is the same as for everyone else — €12.41 per hour. However, there are certain conditions.

Students and interns in Germany are entitled to a minimum wage once they satisfy certain conditions:

• The internship has to exceed 3 months
• It's not a compulsory requirement by your university
• It's not an apprenticeship
• You’re not a volunteer

If you're a student doing vocational training, you won't be eligible for minimum wage. However, you can still expect to earn a salary. While the average wage is €1,066 gross per month, exactly how much you earn depends on the region, profession, and experience.

If you're curious to learn more, read about studying and working in Germany as an international student.

According to StepStone’s 2024 Salary Report, in Germany, the average salary per month is €4,187 (before tax). This makes the average annual gross salary €50,244. For a more representative picture, Stepstone also reported on the median gross salary, which is €3,645 monthly or €43,740 annually.

According to The Federal Statistical Office(FSO), the gross monthly average salary for a full-time employee in Germany was €4,323 in April 2023, (€3,110 net per month). This makes the average annual gross salary €49,260, according to the FSO.

Since the net salary is your salary after tax and any social contributions, it's the best indicator of how much you're really earning. The average salary in Germany after tax is €32,141 annually, according to FSO. The average annual net salary, according to StepStone, is €32,673, while the median net salary is €29,120.

You can use this tool to easily calculate your net salary.

Now that you know the average salary, you might be wondering what is considered good salary in Germany. A good salary in Germany depends not only on your lifestyle but also on where you live, as the cost of living differs from city to city.

In general terms, a good annual gross salary in Germany is between €64,000 and €81,000. However, most Germans who earn a yearly gross salary of €60,000 and above are happy with their salary, which translates to earning between €4,105 and €6,750 per month.

Here's what our guest on our HomeAbroad podcast has to say about what he considers a good salary in Germany:

Since salaries differ per profession, here’s an overview of the annual median salary of the highest-paid and lowest-paid industries in Germany, according to StepStone’s 2024 Salary Report:

So far, we’ve given you an idea of what to expect when it comes to average income in Germany. As you’d expect, salaries will differ a lot depending on your industry, experience and education. The company size, region and your gender are also important factors. Let’s dive into the factors that influence your salary in Germany.

Your work experience influences salary

While it’s good to know the average gross annual salary in Germany, it’s also good to remember that if you’re just starting out, it can take 10 years or more to reach this level.

Here’s how much you can expect to earn in Germany based on your years of work experience, according to StepStone:

The company size influences your salary

As Stepstone points out, large companies (+5,000 employees) in Germany pay an average salary of €53,500 — quite a bit higher than the average salary of €50,244.

Medium-sized companies (1,000 - 5,000 employees) pay an average of €50,000 gross annually.

Companies with 51-500 employees pay an average of €45,000 gross annually, already quite a bit lower than the average salary. Finally, startups or smaller companies with up to 50 employees tend to pay a lot less than the average salary, with an average of €38,500 gross annually.

Your education influences your salary

The average salary changes a lot depending on your qualifications, too. German employees with an academic qualification earn about 34% more than those without an academic qualification. So those with a qualification will earn €57,500 annually on average, while those without will earn €41,000 annually on average.

There is one exception where education is not a strong factor in determining your salary. If you are an IT professional with 7 years of work experience and no educational or vocational background, you are in luck! Experience is key when it comes to IT.

The Southern region pays the highest average salary in Germany

Did you know that there're major differences in salaries within Germany?

According to StepStone, the highest-paying companies are located in the South. In Hessen, the median salary is €47,500, followed by Baden-Wüttemberg with a median salary of €47,000, and Bavaria with a median salary of €46,000.

The top 3 large cities in the South also boast the highest-paid salaries. Munich accounts for the largest median salary of €56,250, followed by Stuttgart (€54,400) and Frankfurt am Main (€54,250).

Such a difference in salaries is mainly due to major corporations having their headquarters in these federal states or cities. For instance, Stuttgart has several automotive, high-tech or consumer goods industries, Frankfurt is the financial hub with its airport and trade fair, and even Hamburg hosts many media houses and consumer goods companies, leading to a median salary of €49,750.

While you might want to flock to these large, high-paying cities, keep in mind the high cost of living in cities such as Frankfurt.

Now, let’s compare the salaries in the South to the salaries in the North and East of Germany.

Brandenburg in the North has one of the lowest median annual gross salaries seen in Germany at just €38,000. Popular northeastern cities like Berlin also have a comparatively low median annual salary of €46,500.

The gender pay gap still exists in Germany

According to Stepstone, the median salary for men in Germany is €45,750, while the median salary for women in Germany is €40,000. This is a 12.4% gap in median salaries, according to this report.

This is significantly less than the 18% gender pay gap reported by the FSO in 2022. The government has committed to reducing the pay gap to 10% by 2030.

Last but not least, your payslip issued at the end of the month will also influence the salary paid to your bank account.

At the end of the month, you'll be issued a payslip for your tax return, which will most likely be in German. Don't worry. We'll walk you through the sheet of paper step by step so that you'll understand it in no time at all!

But before we get to that, let's start by clearing up the difference between gross and net salary:

The gross salary (Bruttogehalt) is your monthly salary without deductions.

The net salary (Nettogehalt) is the amount paid into your account. At this point, income tax, social security and other payments have already been deducted.

Now back to the payslip breakdown.

1. Employee data: Your personal details are recorded here, such as your full name, date of birth, tax and social security details.

2. Presence overview: Your vacation and working hours are recorded in this field. So you can see your exact times of absence.

3. Address field: Your address should be here, but also your staff number and maybe your department number. You’ll also find the address of your employer here.

4. Accounting details: The cost centre, working hours, hourly wage or notes on parental leave are recorded here; all additional values, so to speak.

5. Gross pay: This list shows you, line by line, the breakdown of your monthly payments. This includes your hourly wage, holiday pay, and vacation pay and is always linked to tax and social security obligations. Be aware that "****" indicates further information from the payroll office.

6. Tax/Social Security: This section shows you exactly why your generous gross salary has shrunk dramatically. Here, you'll find a list of income tax, church tax, solidarity surcharge and other tax deductions.

7. Net salaries/net deductions: Right at this point, you can see what you should ultimately receive in your bank account. Should there be other contributions listed here, these will be added or deducted from your net income. So, here is your net income!

8. Payout sum: Read it one more time here: your net income. Make sure that you have received this amount in your bank account.

9. Bank details: Your salary didn't roll in on your bank account? Then, have a look here to see if your bank details are correct.

10. Total costs for employers: Your employer usually lists the total costs (e.g. social security contributions)

11. Certificate of Merit: All accrued gross pay and deductions that have arisen in this employment relationship are listed here.

12. Footer: Small print to explain all abbreviations and legally-required information here.

13. Company pension scheme (bAV): The contribution you have made to the pension fund is indicated here. This contribution is not subject to tax; it is deducted directly from your net income.

Now that you know what the average salaries in Germany are and what factors can influence them, go ahead and smash that interview]or ask for the raise that you deserve!

And when you're ready to pursue your dreams in this exciting country, start looking for your new place!

Want to know more about Moving to Germany? Download the free e-book by filling out the form below.