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TECH

EXPLAINED: Germany’s plans to improve digital access to the labour market

A Bürgergeld app, video consultations and improvements for foreign skilled workers: The German Labour Ministry has put forward a new digitalisation strategy aimed at making life easier for jobseekers and welfare recipients.

Published: 23 April 2024 12:11 CEST
Two people look at a smartphone.
Two people look at a smartphone. Germany's Labour Ministry is planning a digital drive. Photo: picture alliance/dpa | Lukas Barth

Germany is known to lag behind many other nations when it comes to digital technology. 

But the coalition government – made up of the Social Democrats (SPD), Greens and Free Democrats (FDP) – has taken steps forward to change this – at least when it comes to the job hunt.

READ ALSO: Germany unveils new plan to become more immigrant and digital friendly

This week, the Labour Ministry announced a new digitalisation strategy, which includes creating an app for people to claim long-term unemployment benefits (Bürgergeld) and to allow for more video consultations and digital access to residents and skilled workers from abroad looking to come to Germany. 

What should we expect from the app?

The aim is to give German residents easier access to digital applications by 2030, with internal processes also set to be digitalised.

Under the plans, it will be possible to apply for so-called Citizen’s Income or Bürgergeld via an app on a smartphone.

As well as submit applications for the benefit, users will be able to make appointments and receive job offers on their phone. 

The app will first be tested in selected job centres before being rolled out if successful. 

Labour Minister Hubertus Heil (SPD) explained that digitalisation should make it easier for people in Germany to deal with authorities, while relieving the burden on employees and freeing them up for other tasks. 

Labour Minister Hubertus Heil (SPD)

Labour Minister Hubertus Heil (SPD) speaks in the Bundestag. Photo: picture alliance/dpa/dpa-Zentralbild | Britta Pedersen

The ministry will also turn to artificial intelligence (AI) tech. The AI is intended to speed up the processing of Bürgergeld applications and translate complicated texts from official letters into understandable language for recipients.

“We will simplify internal processes and use the potential of AI,” Labor Minister Hubertus Heil told German media outlet Table Media. 

READ ALSO: What to know about Germany’s new digital healthcare law

More online and video consultations

Video consultations and improvements to electronic labour market admission for foreign skilled workers are also planned.

According to Heil, services that are currently only available in analogue form are to be made digital in future.

There are also plans for a national online portal for further vocational training with access to funding opportunities, counselling and further training offers.

Jobseekers from outside the EU to benefit

As Germany faces a severe worker shortage, and attracting talent from abroad has become a high priority for the government. 

Heil said that in future, skilled foreign workers will be admitted to the German labour market more quickly through digital cooperation between the Federal Employment Agency, foreign missions and immigration authorities.

The same streamlining process will apply to the recognition of foreign qualifications, which is known to be a burdensome process currently. 

READ ALSO: Could backlogs at Germany’s foreigners’ offices stifle skilled immigration?

The new strategy is to apply to the entire labour and social administration. It was drawn up by seven other authorities as well as the Ministry of Labour. According to Heil, the move is an important contribution to strengthening people’s trust in the welfare state.

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For members

WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Published: 2 May 2024 12:26 CEST
Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung. 

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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