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JOBS

Working in Germany: A weekly roundup of the latest jobs news and talking points

Every week The Local brings you a roundup of the latest jobs news and topics around working in Germany. Here we look at post-holiday blues, the new Tesla plant near Berlin, the impact of the pandemic on freelancers and Germany's cultural sector.

Working in Germany: A weekly roundup of the latest jobs news and talking points
Tesla boss Elon Musk with CDU chancellor candidate Armin Laschet on Friday at the new gigafactory in Brandenburg. Photo: picture alliance/dpa/dpa-Zentralbild/POOL | Patrick Pleul

Post-holiday blues

Feeling lethargic and unmotivated after your break from work? You may have ‘post-holiday syndrome’. 

This is when employees experience a drop in mood and performance on the job immediately after a vacation, Robin Kaufmann from the Institute for Occupational Health Consulting (IFBG) in Constance, told German news site Focus

However, the term syndrome is actually not correct, said Kaufmann, adding: “It’s not an illness, but a relatively short-term effect.”

It’s triggered because the body is in relaxation mode after the vacation and has to get used to the workload again (sob). 

“Maybe you had different sleep times on vacation and you have to get used to getting up early again,” said Kaufmann. “That can be a big adjustment.”

So how can you beat it?

Experts advise a gentle return to work and to take things slowly as you ease back into the rat race. 

One trick to keep job stress at bay a bit longer could be to let automatic email responses continue for a day or two after returning home (if your job allows this).

“Then you don’t have all the customers coming at you on the first day back from vacation,” said Kaufmann.

German government to sell part of its stake in Lufthansa

The German government said it will sell part of the 20 percent stake it took last year in Lufthansa to prop up the airline group during the coronavirus pandemic, reported AFP on Monday.

The Economic Stabilisation Fund (WSF) that holds the shares in Germany’s flagship carrier “is selling a limited part of its stake”, it said in a statement. Berlin will reduce its ownership by a maximum of five percent “over several weeks”, the WSF said.

The Lufthansa group, which also includes Austrian, Swiss and Brussels Airlines, was saved from bankruptcy last June by a German government bailout.

READ ALSO: Germany’s Lufthansa says 30,000 jobs at risk due to pandemic

The government took a 20-percent stake in the group as part of a nine-billion-euro ($10 billion) state aid package.

But the help was seen as a temporary fix and the government will now begin to sell its shares due to the recent “positive of the company” and “the initial success of the forward-looking measures”, the WSF said.

It comes as the company is also in the throes of a painful restructuring to slash costs that will include thousands of staff losing their jobs, with 30,000 jobs already axed since the start of the pandemic.

As part of the recovery plan, the airline will reduce its current fleet of 800 aircrafts to 650 by 2023.

Tesla car plant eyes October opening

During a visit to the new Tesla gigafactory in Brandenburg near Berlin on Friday, CEO Elon Musk said he hopes the first cars will begin to get produced sometime in October.

When asked when he expects the factory’s final approval, Musk said: “I don’t know; we’re hoping to get the final approval in October. Or Oktoberfest. An Oktoberfest approval.”

He was also asked about his opinion on conservative Chancellor candidate Armin Laschet, who accompanied him on the tour (he’s a “great guy” according to Musk) and if Germany still rocks (yes). 

Tesla is aiming to produce 500,000 electric vehicles a year at the plant, which will also be home to “the largest battery factory in the world”. The electric car plant will also create hundreds of jobs.

But activists have slammed the project over environmental concerns.

READ ALSO: From lizards to water, eco-bumps snag Tesla’s giant car factory 

Freelancers worried about German job market

Freelancers fear drastic cuts to jobs and contracts in the coming months as a result of the Covid pandemic, according to a survey.

At least 130,000 positions are threatened in the coming six months, Funke Mediengruppe newspapers reported this week, citing a survey by the Institute for Liberal Professions on behalf of the Federal Association of Liberal Professions.

For every fifth freelancer, the economic situation has become even worse compared to the previous year, the survey said.

This is particularly true for the liberal arts professions, solo self-employed freelancers, small freelance units with up to five employees and very young companies, the president of the Federal Association of Liberal Professions, Wolfgang Ewer, told the newspaper group. For every fourth respondent, however, the situation has improved year-on-year.

Did you know…

According to the German Federal Ministry of Economics, around 1.8 million people were employed in the cultural and creative industries in Germany in 2019, with 53 percent of them in part-time or full-time work and subject to social security contributions.

Most of them were in the games and software industry (around 430,000), followed by advertising (around 129,000). In the film industry, only about 43,000 people were employed and paid social security contributions, in the book sector about 51,000 and in the performing arts only about 27,000.

According to figures from the Cologne Office for Cultural Industries Research, the income range is considerably wider for this sector than in other occupational groups, reported Spiegel last week.

Full-time employees with a good income (50 percent have a net monthly income of between €1,100 and €2,000) contrast with those with mini-jobs and self-employed people with very low incomes.

Only 14 percent of creatives earn more than €17,500 a year as freelancers and self-employed, according to figures. Around 32 percent earn less than €450 euros a month as mini-jobbers (16 percent) or less than €17,500 euros a year as freelancers (16 percent). 

According to the Federal Statistical Office, the proportion of self-employed people in cultural professions as a whole is 39 percent. 

The creative industries have been hit particularly hard in the pandemic.

READ ALSO: Germany sets aside €2.5 billion to reboot cultural events

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Please get in touch with us at [email protected] to let us know if this weekly feature is useful and any suggestions you have for jobs related articles on The Local Germany. 

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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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