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Germany falls behind neighbours in hourly pay

The average hourly private sector pay in Germany increased slightly between 2013 and 2014, but the rate still lagged behind that in most of Germany’s neighbour states, according to data released on Monday.

Germany falls behind neighbours in hourly pay
Photo: DPA

Germany’s average private sector pay – which includes gross earnings and non-wage costs such as social contributions – rose by 1.6 percent to €31.80 per hour in 2014, according to the federal German statistics office.

This put Germany at eighth place in the EU for labour costs and behind most of its neighbouring countries. In France, the Netherlands, Denmark, Belgium and Luxembourg private sector workers were all paid on average more than in Germany.

French workers were paid on average more than 10 percent more than German workers at €35.20 per hour.

Workers in Denmark were paid the highest on average across the EU at €42 per hour – about 32 percent more than German workers. Bulgarian workers were paid the lowest on average at €3.80 per hour.

Still, German workers were paid 30 percent more per hour than the EU average of €25.30.

Germany ranked higher for average pay in the manufacturing sector, at fourth place in the EU with an average rate of €37 per hour and falling only behind Belgium, Denmark and Sweden.

German private sector employers paid an additional 28 euros of non-wage costs per 100 euros of gross earnings, which put Germany below the EU average of 31 euros.

Non-wage costs mainly include employers’ social contributions, such as employers’ social security contributions, employee pension schemes and continued pay in case of sickness.

France paid the highest average non-wage costs per 100 euros of wages at €47, followed by Sweden (46 euros) and Belgium (44 euros), with the lowest in Malta (9 euros).

 

 

 

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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