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WOMEN

Merkel demands equal pay for women

German Chancellor Angela Merkel, voted Forbes magazine's most powerful woman in the world for the fourth year running, called on women Monday to fight for their right to equal pay.

Merkel demands equal pay for women
Photo: DPA

Germany’s first female leader said in an interview with feminist magazine Emma ahead of a general election next month that the pay gap between the sexes was a “real problem.”

“I advise any woman who earns less than her male colleague for the same work to go to her boss self-confidently and say something has to change,” she said.

The 55-year-old premier of Europe’s top economic power said ahead of the upcoming September 27 German election, however, that she did not favour state regulation to level the playing field.

“But we politicians will keep up the pressure,” she pledged.

Merkel’s comments drew an attack from her post-election coalition partner of choice, the liberal opposition Free Democrats (FDP), who said the chancellor herself bore her share of the blame for skewed pay between the sexes.

“Several studies show that there is hardly another European country where so few mothers work than Germany,” the FDP’s Bavarian chapter chief Sabine Leutheusser-Schnarrenberger, told the daily Tagesspiegel.

Leutheusser-Schnarrenberger, a former German justice minister, said the difficulty many women have balancing work and family capped their career prospects and salaries.

“The government has failed to strike a new balance in its family policy initiatives. With substantially better childcare and full-day schools, women would have better chances of finding well-paid jobs,” she said.

Merkel aims to ditch her current coalition partners, the Social Democrats, in favour of the FDP. Polls show they are likely to win a ruling majority.

On average, women in Germany earn 23 percent less than men, compared to an average of 17 percent in the rest of Europe, a study by the Düsseldorf-based

Institute of Economic and Social Research found. It attributed the gap to factors including a tax system that encourages women to take a part-time job when their husband earns more than they do, as well as a scarcity of creche places and early school closing hours.

In the same interview, the childless Merkel divulged her own secrets for juggling work and her personal life, telling Emma that despite the demands of her job, she and her husband, chemist Joachim Sauer, shared out the domestic chores with the help of a housekeeper.

“We talk about who will turn on which washing machine when, who will hang out the laundry to dry,” she said. “Or who will do the shopping.”

She said her publicity-shy husband did not cook.

“I write him a list and then he does the shopping for the weekend,” she said.

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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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