Read news from:
Austria
SHARE
COPY LINK
For members

JOBS

REVEALED: How much do employees really earn across Germany’s states?

Ever wondered how much money other people earn in Germany? These new figures shed some light on the pay packets of employees in industries across the country.

Published: 3 August 2021 13:01 CEST
Updated: 8 August 2021 01:30 CEST
REVEALED: How much do employees really earn across Germany's states?
Hamburg is where employees earn the most in Germany, according to recent figures. Photo: picture alliance/dpa | Daniel Bockwoldt

If you’ve ever thought about moving to Germany for work – or you’re already here but want another job – here’s a look at recent figures on salaries published by the Federal Statistical Office, and a few other things to think about.

What was the average income in 2020?

In 2020, the average income in Germany was €47,700 gross (before tax). This means that during the first Covid pandemic year, income fell by an average of €300 compared to the year before.

The average income is the mean value of the gross salaries of all employees in Germany.

So keep in mind that it takes in what all employees earn across the country – even those earning six-figure amounts. 

The average salary of €47,700 corresponds to a monthly gross salary of €3,975 for a full-time job (35 to 40 hours a week is common for full-time in most companies). The Statista graph below shows what German employees have earned on average per month through the years from 1991 to 2020.

READ ALSO: Germany’s unemployment rate drops after Covid restrictions relaxed

Statistik: Durchschnittlicher Bruttomonatsverdienst von vollzeitbeschäftigten Arbeitnehmern¹ in Deutschland von 1991 bis 2020 | Statista

For a person with the tax class I living in Baden-Württemberg, this would result in an average take home pay of €2,526.26 net (after tax).

Special payments, for example in the form of vacation pay or bonuses are not included in the data analysed by experts. 

What do people earn in different industries in Germany?

Using the latest stats, German business daily Handelsblatt put together a special report looking at how the average income of employees in Germany varies depending on the industry, region and gender of employees. 

There are – unsurprisingly – large differences in what you take home every month depending on which sector you’ve decided to enter. 

According to the Federal Statistical Office, employees working in financial and insurance services as well as IT sectors earned the most in 2020. Employees there received a not too shabby €5,248 to €5,602 per month (gross) on average.

Photo: picture alliance/dpa | Uwe Anspach

Employees from the hospitality industry earned the least, with average gross earnings of €1,893 per month.

READ ALSO: End of home office: Are employees in Germany ready to return the office?

Average (gross) income in Germany across industries per month in 2020

1. Financial and insurance services €5,602 

2. Information and communication €5,248 

3. Energy supply €5,218 

4. Professional, scientific and technical services €4,933 

5. Education €4,650 

6. Real estate €4,271

7. Manufacturing €4,271

8. Public administration, defense and social security €4,091 

9. Mining and quarrying €4,083 

10. Manufacturing industry €4,062 

11. The service industry (total) €4,033

12. Arts and recreation €3,871 

13. Miscellaneous services €3,871 

14. Trade €3,735 

15. Water supply €3,617 

16. Construction €3,540

17. Transport and storage €3,164

18. Hotels and restaurants (hospitality) €1,893 

Source: Federal Statistical Office

What do people earn in Germany’s states?

As well as the type of industry, what you take home every month depends on the federal state where you’re employed. According to the Federal Statistical Office, full-time employees in Hamburg earn the most in Germany, with an average gross monthly income of €4,966.

This is followed by Hesse and Bavaria in second and third place. Mecklenburg-Western Pomerania brings up the rear. Full-time employees here earn the least compared to other states with €3,379 gross per month.

What is particularly striking is that even after more than 30 years of reunification, the difference in earnings between western and eastern Germany is clearly visible.

READ ALSO: What a boom in remote working could mean for Germany’s housing market

Average (gross) income in Germany across the 16 federal states per month in 2020

1. Hamburg €4,966

2. Hesse €4,835 

3. Bavaria €4,652 

4. Baden-Württemberg €4,646 

5. Berlin €4,502

6. North Rhine-Westphalia €4,429

7. Bremen €4,422

8. Rhineland-Palatinate €4,186

9. Lower Saxony €4,135

10. Schleswig-Holstein €3,963

11. Saarland €3,959

12. Brandenburg €3,575

13. Saxony €3,561

14. Saxony-Anhalt €3,539

15. Thuringia €3,401

16. Mecklenburg-Western Pomerania €3,379

Source: Statista

How does gender influence average income?

Another factor influencing the amount you earn is your gender. Sadly, women received less money for the same work than men in 2020.

According to Statista, the average gross income for men working full-time in 2020 was €22.78 an hour. For women working full-time it was €18.62. 

This is known as the gender pay gap. In 2020, women received around 18 percent less money than their male colleagues.

And at 20 percent, the difference was significantly higher in western Germany and Berlin, than in the eastern states where it was six percent.

This percentage difference has remained around the same level since 2002. The German government aims to reduce the salary gap to 10 percent by 2030.

Why do women get paid less than men?

The reasons for the large difference in average incomes between women and men are down to several reasons. One important factor is the salary levels of the industries. In male-dominated sectors such as financial services, IT and manufacturing, salaries are higher on average. In industries such as nursing and social work – where many women tend to work – salaries are lower.

However, even when industry differences are taken into account and only gross salaries are compared between, for example, male and female engineers with the same work experience, there is still a pay gap of at least six percent.

“This figure reflects discrimination against women,” Malte Lübker, an expert on wage structures at the Hans Böckler Foundation’s Institute of Economic and Social Research (WSI), told Handelsblatt.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

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. 

Published: 2 May 2024 12:26 CEST
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 

SHOW COMMENTS