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EUROPEAN UNION

Germans worry the most about unemployment, study shows

Germans worry the most among people living in European countries, particularly about unemployment, a new study by the GfK market research institute reported on Monday.

Germans worry the most about unemployment, study shows
Photo: DPA

“Overall, people – and Germans in particular – are more worried than ever,” managing director and vice chairman of the GfK Association Raimund Wildner said in a statement.

“What is remarkable this year is that the number of concerns expressed has rocketed. In fact, I can hardly recall such a quantum leap before, at least not in the past 20 years.”

While only 16 percent of Britons and 36 percent of Swedes said they feared losing their jobs, a whopping 66 percent of Germans complained of the fear in 2010, poll results showed.

Though unemployment was the top concern in eight of the 11 European countries included in the study, the average of 43 percent was well below Germany’s level of distress.

Unemployment has remained the top concern among Germans for the last 20 years with the exception of 1991, but the jump of nine percent from the previous year to reach two-thirds of the population was unprecedented, according to GfK.

The study, entitled “Challenges of Europe 2010,” explained that while unemployment has risen less than expected during the recession (up from 7.3 percent in 2008 to 7.5 percent in January 2010 according to the OECD), growing concern may stem from uncertain and unpredictable future prospects.

The poll, which questioned a total of 13,200 consumers in February and March, also showed the number of concerns themselves have jumped among Germans since 2009 – up from 2.8 to 3.2 issues in 2010.

“This represents a giant leap,” Wildner said.

Meanwhile anxiety about economic development dropped by 10 percentage points, though it still took second place among Germans’ top concerns in 2010 at 26 percent. Given recent rancour over the Greek bailout, this was also surprisingly one of the only issues that Germans worried about less than their European neighbours.

Public healthcare was also a worry, with 21 percent saying they were uncertain about the future of the German benefits system – up from just 10 percent since last year, GfK reported.

An additional spike in Germans’ worries focussed on whether their retirement was secure, up to 19 percent from just 9 percent last year.

Security was also a source of apprehension, with 15 percent of Germans citing concerns about criminality, compared to 8 percent in the previous annual poll.

The study was conducted in Germany, France, Austria, the UK, Italy, Belgium, the Netherlands, Russia, Poland, Spain and, for the first time, Sweden. Respondents were allowed to provide multiple answers to the open-ended question: “In your opinion, which are the most urgent issues to be resolved in your country today?”

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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. 

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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