It's tough for new expats to get a real feel for what is considered a good salary. So, with thousands of internationals relocating to Germany every year, you're not alone in wondering how to go about negotiating your pay. But knowing the average salaries 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 and answer your questions about:

• minimum wage in Germany
• working in Germany as an expat
• good salaries in Germany
• the average salary for different professions in Germany
• factors that influence your salary in Germany
• the German payslip

So keep reading! We got you covered!

What's the minimum wage in Germany?

As of January 1, 2024, the minimum wage in Germany is €12.41 per hour.

This minimum wage also applies to expats, international students, and overtime work (unless your contract states otherwise or you agree to take time off at a later date).

The minimum wage in Germany is usually updated around January and July. Check Zoll, the German Central Customs Authority, to stay up to date with the latest minimum wage.

So, what's the minimum salary in Germany?

Let's do the maths. With a 40-hour week as a full-time employee, you'll easily earn a minimum gross salary of €2,151 per month! After-tax, the minimum German salary equals €1,569 per month.

As an international student, you can choose to work next to your studies. With a German student visa, you're allowed to work 120 full days or 240 half days a year (a full day is 8 hours of work).

Now, it's good to keep in mind that (international) students don't need to pay taxes or social security contributions in Germany if they earn less than €450 a month.

Since taxes in Germany are high, you can work for 37 hours per month and earn minimum wage to ensure your monthly income won't be over €450.

Are interns entitled to minimum wage in Germany?

Yes! Interns in Germany are entitled to a minimum wage once they satisfy certain conditions:

• Has to exceed 3 months in length
• It is not a compulsory requirement by your university
• It is not an apprenticeship
• You’re not a volunteer

However, if you are self-employed, a freelancer, volunteer or are required to do a vocational training or a compulsory traineeship of 3 months long, you are not eligible for minimum wage.

How much do you need to earn to live in Germany?

Choosing to work in Germany as an English-speaking expat is a great decision as Germany pays a rather high net average salary compared to the cost of living.

Assuming that you're a young starter moving to Berlin, the average monthly expenses are as follows:

Expenses	Cost
Rent (studio)	€1,200
Public transport	€99
Food	€250
Leisure	€200
Total living expenses	€1,749

This means that you need to earn just a bit above the minimum wage (€1,569 net) to live comfortably in Berlin! You could even get by for less if you opt to rent a room in Berlin instead of a studio. Thankfully, the average net salary in Berlin is quite a bit higher at €2,553 per month, so you’ll get by comfortably even on a lower salary.

What's considered a good salary in Germany?

A good salary in Germany not only depends on your lifestyle but also on where you live as the cost of living differs from city to city.

But, in general terms, a good annual gross salary in Germany is between €64,000 to €81,000.

But most Germans who earn a yearly gross salary of €60,000 and above are happy with their salary.

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Here's what our expert has to say about what he considers a good salary in Germany:

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What is the average salary in Germany?

According to The Federal Statistical Office(FSO), a monthly gross average salary for a full-time employee in Germany was €4,323 in April 2023. That means that the average net salary Germans bring home is about €3,110 monthly. The average annual gross salary then is €49,260, according to the FSO.

According to StepStone’s 2024 Salary Report, the monthly average gross salary in Germany is €4,187, while the median gross salary was €3,645 monthly. The average annual gross salary is €50,244, while the median gross salary in Germany is €43,740 according to StepStone.

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

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

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Median salary by different professions in Germany

Here’s an overview of the gross annual median salary of the highest-paid and lowest-paid industries in Germany, according to StepStone’s 2024 Salary Report:

Industry	Median gross salary
Banking	€63,250
Pharmaceuticals	€57,250
Aerospace	€57,750
Science & Research	€57,000
Insurances	€56,000
Transportation & Logistics	€38,500
Craft	€38,500
Leisure/Tourism	€38,000
Agriculture/Forestry/Fishing	€36,000
Hospitality	€35,000

As you can see, your career choice determines your salary in Germany.

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:

Years of experience	Median gross salary
Less than 1 year	€38,250
1-2 years	€40,000
3-5 years	€42,000
6-10 years	€45,500
11-25 years	€48,000

The company size influences your salary

As Stepstone points out, large companies (+5,000 employees) in Germany provide 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.

So, remember: The bigger the company, the higher your salary is likely to be.

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 are 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 highest-paying large cities, do 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 reduce the pay gap to 10% by 2030.

Understanding your German Payslip

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. It is also the sum that was agreed upon in your employment contract.

The net salary (Nettogehalt) is the amount paid into your account. This is the salary from which income tax, social security and other payments have already been deducted. Income tax is usually around 35% (which varies depending on the gross salary).

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In other words: If you have a gross salary of about €3,000 you will receive about €1,900.

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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!