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WORKING IN GERMANY

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Finding company when you’re a freelancer

Freelancers and entrepreneurs tired of working in their pyjamas or nursing a cold cappuccino are coming together in communal offices. David Sharp reports on the hot trend among Germany's self-employed.

Finding company when you're a freelancer
Photo: DPA

On the second floor of a renovated factory in Berlin’s trendy Kreuzberg district, an eclectic bunch of freelancers and entrepreneurs hunch over laptops in a peculiar hybrid of a traditional office, a home workspace and a coffee shop.

A row of alphabetized pigeon holes serve as mailboxes for the “office” workers. People mill around the small kitchen area chatting and brewing coffee. Groups of young professionals, collaborating on shared projects, gather around desks pushed together like a flotilla of pontoons, while lone-wolf freelancers tap away on their laptops at separate work stations.

The space gently hums with a laid-back, convivial hubbub of activity. Welcome to a new way of working in Germany. Welcome to the Betahaus.

Everyone she passes greets Madeleine von Mohl with a cheery, “Hallo!” The genial thirty-something, from a small town northeast of Hamburg, seems to know each one of the 150 people who rent desks at the Betahaus.

Von Mohl is one of six like-minded entrepreneurs who co-founded the pioneering venture in April 2009, the first of its kind in the German capital. But now such “co-working spaces” are popping up all over the country, from Berlin to Stuttgart, Munich to Cologne and beyond. Von Mohl hit upon the idea when she wanted to find a better environment for herself and her friends to work and collaborate.

“Five or ten years ago, the most freedom anyone could have was to work at home. It was the ideal scenario. Everybody wanted to have a home office,” von Mohl said.

Not anymore. These days, a growing tribe of self-employed laptop nomads are looking to get out of the house and back into the world at large.

Both telecommuting professionals and footloose freelancers are discovering that working alone at home, in a lonely office, or in a coffee shop isn’t all it’s cracked up to be. There are often too many distractions, too much noise; and working in isolation can cause motivation to dip.

No more napping

People find they become less effective, less productive in such working environments. They yearn for the social interaction, professionalism and synergy found at a traditional office, albeit one with a modern, maverick spin.

“We think we combine the positive sides of a traditional company – you have colleagues you can say, ‘Good morning’ to, every day – with an infrastructure that works,” von Mohl said. “And we’re open to all: we don’t say to specific people, ‘You’re not allowed to enter.’”

Co-working spaces are providing a 21st century techie twist on the old idea of shared artists’ studios. It’s cheaper than leasing traditional office space. And it rescues people who might otherwise sit in their pyjamas at home all day or find themselves in cafés nursing a stone-cold latte macchiato.

“Having a consistent, reliable place to go to work is good for keeping your head straight,” says Stefan Müller, 31, a freelance software developer from Frankurt. “It helps me separate home from work and I find I can focus better here.”

Stefan rents a “flex-desk” at Betahaus at a monthly rate, which allows him to work at any available desk in the building.

Depending on their needs, other people rent fixed desks or team desks. The fourth floor houses a new area dedicated to nascent firms. Betahaus runs a competition called “Betapitch,” which invites aspiring start-ups to put forward their business proposals. The winning pitch receives six months’ free office space in the Betahaus.

Like most co-working spaces, Betahaus offers everything you’d find in a traditional office – internet, printers, lockers, the use of meeting rooms – and a few unconventional extras. A hairdresser will be on site every Friday for those needing a quick trim ahead of a weekend of Berlin partying or for that crucial business meeting. And a Hong Kong tailor will sometimes swing by to measure up fashion-conscious Betahausers for bespoke suits.

Every Thursday morning, in the ground floor café which doubles as a meeting place and foyer for the Betahaus, von Mohl hosts the “Beta breakfast,” where members gather to shoot the breeze away from their desks over a spot of Frühstuck. An informal presentation provides the weekly entertainment and offers an opportunity to network and share ideas.

In the summer of 2010, Betahaus opened its second branch in Hamburg’s hip Schanzenviertel district. A third space will open its doors to Cologne’s transient workforce on May 1 this year. But the expansion plans don’t end in Germany.

Betahaus is renovating a house in Lisbon (where von Mohl studied at university and met fellow co-founder Christoph Fahle) that will serve as new premises. A suitable location in Barcelona is also being sought. Eastern Europe is next, with Bucharest already pencilled in.

“We sometimes think we’re the winner from the economic crisis,” von Mohl said.

Diff’rent strokes

A different kind of co-working space in Berlin is Wostel, located on the cutting-edge of Neukölln’s burgeoning creative scene. The ambitions of founders Marie Jacobi, a designer, and Chuente Noufena, a graduate in business management, are more local than Betahaus’ Europe-wide franchise.

“It’s Neukölln. It’s hot right now. We’re in the middle of these changes here,” Jacobi said. “It was important for us to be on street-level. We want to be connected to the life on the street: otherwise you’re just connected to the internet.”

Their philosophy is closer to the spirit of the original movement started by computer programmer Brad Neuberg in San Francisco in 2005, whereby creating a community of co-workers with shared values was more important than profit.

“We wanted people to have a special place to work; not like the other places which are a little Ikea,” Noufena said.

Unlike the ramshackle corporate interior of Betahaus, Wostel has the elegant ambiance of a 1960s classroom from the TV show Mad Men. It contains a hotchpotch of mismatching desks and chairs and retro knick knacks in classic Berlin style and plays host to a changing cast of itinerant coworkers.

The dimly-lit “red room” at the back of the Wostel – with blood-soaked décor straight out of a David Lynch movie – has proven popular with freelance writers who need a quiet space to concentrate.

“It might not last,” Jacobi said. “Maybe people will want to work alone again? Return home!”

Do you have any other German workplace tips? Add them to the comments section below.

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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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