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IMMIGRATION

Europeans try their luck in Germany

As the financial crisis in Europe continues to put pressure on job-seekers, thousands of Greeks, Spaniards and Portuguese are coming to Germany – to escape economic problems in their native countries.

Europeans try their luck in Germany
Photo: DPA

In Frankfurt, young Spanish academics apply for jobs at the Spanish language institute Instituto Cervantes. And at an association for Greek academics, founder Gregorius Thomaidis is flooded with registrations almost every day from people who are looking for new opportunities in the Rhine-Main area.

Community colleges and Goethe Institutes all over the country are reporting an influx of well-educated Southern and Eastern Europeans for German language courses.

The financial crisis in Southern Europe as well as the possibility of establishing oneself and being able to work in other EU countries is what attracts increasing numbers of Europeans to Germany.

According to the Federal Statistics Office in Wiesbaden, in the first half of 2012, 306,000 foreigners from other EU countries moved to Germany – 24 percent more than the first half of the previous year. Experts consider this to be a success.

“We should be happy about this immigration,” said social scientist Steffen Kröhnert from the Institute for Population and Development.

Between 2002 and 2010, Germany’s population decreased by about 800,000 people. Moreover, there is a need for young and qualified professional newcomers in the ageing German society. “This is the gap that the immigrants are filling,” said Kröhnert.

Many industries are on the lookout for trainees including those in trades as well as small and medium sized businesses in rural areas. “Young people from Spain and Greece could be specifically recruited for these positions,” she said.

“The rising number of immigrants most notably from the crisis-hit Southern European countries shows that the EU freedom of movement has been successful,” said Gunilla Fincke, director of the Expert Council of German Foundations on Integration and Migration, in Berlin.

Unemployed people from countries hit by the financial crisis make use of the opportunity to work in the economically better off nations of the EU. “This benefits everyone: Germany can do away with the shortage of skilled workers, while the EU citizens find work and unburden the job market in their home countries,” said Fincke.

People from the crisis-countries are mostly well-educated professionals and young, ambitious, high school graduates. They should, however, be systematically supported, she said.

Professor Herbert Brücker from the Federal Employment Agency in Nuremberg said this of the immigrating hopefuls: “We can absorb this workforce well.”

In 2011, immigrants were much better integrated into the job market than the earlier surges of foreigners. The new immigrants – Southern Europeans as well as the biggest immigrant group, the Poles – are also well qualified. But owing to their high qualifications, both Kröhnert and Brücker are sceptical about whether they will help solve the shortage of nurses facing the country.

Last summer, at least three or four fellow Greeks registered themselves at Thomaidis’ association for Greek academics. They all want to either move to Germany or are already living in the country with relatives.

“They come from all kinds of fields, but there are especially a lot of scientists,” he remarked.

Most immigrants fall in the 24 to 40 year age group: people who have lost their jobs in their home country or don’t have any prospects there.

Thomaidis, a retired surgeon, concluded, “If the situation in Greece doesn’t improve, there will be many more people moving to Germany.”

DPA/The Local/mb

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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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