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WORKING IN GERMANY

How much do employees in Germany typically earn?

Ever wondered how much people in Germany earn on average? We look at the salaries of employees as well as the top-paying sectors and which regions offer the best pay.

Published: 5 April 2024 12:35 CEST
Updated: 18 April 2024 13:16 CEST
A wallet with euros.
A wallet with euros. Image by Tom from Pixabay

As one of the largest economies in the world, job prospects in Germany are positive and people can earn a respectable wage.

However, there are significant differences in how much people in Germany are paid. The state where an employee lives, the profession or job as well as gender continue to have a major influence on the distribution of income. 

Recent studies help explain how much employees typically earn. 

How much do workers earn on average?

A German full-time employee earned an average gross salary of €4,323 per month in April 2023, according to recent data released by the Federal Statistical Office. That means the gross annual salary on average in Germany was around €51,876 last year. 

It’s worth noting that taxes and social security contributions Germany are fairly high so the take-home pay of employees is significantly lower than gross income.

READ ALSO: What German tax class are you in?

Meanwhile, the data from the statistical office is based on the average gross salary, also referred to as the arithmetic mean. But some experts say that the significance of these statistics could be improved by using the median, also known as the central value. The median is the value that is exactly in the middle of all individual data when sorting the data in ascending order.

Which jobs offer the best pay?

Not surprisingly, there are big differences in how much you take home depending on the kind of job you work in. 

At the top of the ranking, full-time employees in the financial and insurance services sector earned an average gross salary of €5,841 per month last year. IT and communication workers received €5,769 per month, while those working in freelance, scientific and technical services earned on average €5,436.

The average gross monthly salary in the public sector was €4,324.

At the lower end of the scale, average salaries in the agricultural and forestry sector (including fishing) stood at €2,798 per month last year, while employees in the catering sector earned €2,860 gross income per month.

Where you live makes a difference

The place of residence or work in Germany also plays an important role in the amount of pay you get. 

Even after more than 30 years of reunification, the difference in earnings between west and east Germany is still clearly visible.

According to recruitment portal StepStone’s 2023 report, median salaries in Hamburg and Baden-Württemberg are around 10 percent above the average. Overall the research found that the east-west gap (not including Berlin) was 15 percent. An average median salary was €38,700 in eastern Germany and €45,500 in western Germany. 

Hamburg has the highest average median salary at €48,100. Baden-Württemberg is second with €48,000, followed by Hesse at €47,800. Thuringia (€36,600), Mecklenburg-Western Pomerania (€36,200), and Saxony-Anhalt (€36,100) are at the other end of the scale. 

READ ALSO: How your wages in Germany could depend heavily on where you live

The famous Karl Marx statue in Chemnitz, Saxony.

The famous Karl Marx statue in Chemnitz, Saxony. Differences between East and West can still be felt in Germany today. Photo: picture alliance/dpa/dpa-Zentralbild | Hendrik Schmidt

Large gender pay gap

Gender can also have a big influence on salary levels in Germany, with women on average receiving less pay than their male colleagues for the same work.

According to the Federal Statistical Office, the average gross hourly wage in April 2023 for full-time men was €27.02 per hour, while full-time women earned €23.59. This corresponds to a salary difference of 12.7 percent.

The StepStone salary report also comes to the conclusion that women earn 12.4 percent less than men. According to the online job portal’s calculations, a woman earns an average of €5,750 less per year.

This difference in earnings is referred to as the “gender pay gap”. This percentage has hardly changed since 2002. The German government has set itself the goal of reducing the gender pay gap to 10 percent by 2030.

READ ALSO: Why is the gender pay gap so big in German-speaking countries?

How does net disposable income in Germany compare to other countries?

The GfK Purchasing Power Study, which determines the net disposable income of Europeans (that’s after tax and deductions), shows how German employees compare with other European countries. 

GfK put the average net income in Europe at €17,688 per capita for 2023 as a whole.

Liechtenstein leads Europe with an average disposable net income of €68,843 per capita. Switzerland is in second place with a net disposable income of €49,592 per capita, while Luxembourg follows with an average net income of €40,931.

Germany was further down the ranking with a net disposable income of €26,271 per capita. 

Of the 42 countries analysed, only 16 were above the European average net income. For instance in Spain, disposal net incomes averaged €16,449.

READ ALSO: Where in Germany do people have the most (and least) income?

Member comments

  1. Really great that you link where the data comes from 👍

    But, it should be noted that the 4323/month is base salary. „Brutto­monats­verdienst ohne Sonder­zahlungen“

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For members

GERMAN CITIZENSHIP

How much do you need to earn to qualify for citizenship in Germany?

Applicants for German citizenship need to be able to support themselves financially, but it's often unclear what that means in practice. Here's how to work out if your income is high enough for citizenship.

Published: 15 May 2024 15:29 CEST
How much do you need to earn to qualify for citizenship in Germany?

Out of the requirements for qualifying for a German passport, supporting yourself financially is one of the most important – and one of the most confusing.

Many foreigners assume that the authorities have a magic number in mind and will often worry about whether their income is above or below this threshold.

In reality, though, the law is much more flexible. In section ten of the nationality law, it states that applicants must show that they “can support themselves and their dependent family members without claiming benefits under the Second or Twelfth Book of the Social Code.”

In other words, that your income is healthy enough to not rely on the state for things like long-term unemployment benefits.

According to Fabian Graske, an immigration lawyer at Migrando, around €1,500 gross per month for a single person is usually considered enough to live on. 

That said, there isn’t really a one-size-fits-all approach to this quesiton. 

When it comes to working out if your income is high enough, you’ll need to take into account a number of factors that your case worker at the naturalisation office will also weigh up. 

That’s why it’s important to ask yourself a number of questions that go beyond just how much you earn: 

How high are your living costs? 

In Germany, there are huge regional differences in the cost of living, so what someone can afford to live on varies hugely from place to place.

For example, someone living in pricey Munich is likely to need much more money for rent or their mortgage than a resident of much more affordable places like Halle or Leipzig, so you should consider whether what you earn is enough to offer a basic standard of living in the city or town you live in. 

READ ALSO: Requirements, costs and permits – 6 essential articles for German citizenship

It is worth mentioning, though, that what you actually pay for rent and bills matters more than the averages. If you’re lucky enough to find an apartment with unusually low rent in Berlin, for instance, you can probably get away with earning less money as well. 

Are you single or do you have a family?

If you’re single and have no children, you’ll likely get a lot more lenience from the authorities when it comes to having a lower-than-average income.

A family sit at a lake.

A family sit at a lake in Bavaria. Image by Eva Mospanova from Pixabay

Of course, if you have dependents such as kids or a spouse who doesn’t work (or both), you’ll need to ensure not only that your own living costs are taken care of, but also that your family can survive on your income alone.

That naturally means you’ll be expected to earn a certain amount more for each dependent child or adult.

On the plus side, any income your spouse does earn will be counted alongside your own, so if you’re the one who is supported by their partner, the authorities will also take this into account. 

Is your job stable or unstable?

One key thing to think about when applying for citizenship is the security of your work contract. Someone who has a long-term contract with an employer and has passed their probationary period will be in a much better position than someone who is still on a three-month trial, for example.

This doesn’t mean you shouldn’t submit a citizenship application after just starting a new job, but be aware that the authorities may well wait to process your application until you’ve passed the initial probation and have been put onto a longer-term contract. 

A similar rule of thumb applies to people who are currently claiming Arbeitslosengeld I (ALG I), or unemployment insurance. Though this doesn’t disqualify you from citizenship, it may delay your application until you can find a stable job. 

READ ALSO: Can I still get German citizenship after claiming benefits?

Do you need to rely on welfare payments to get by?

A key aspect of German naturalisation law is working out whether you’re likely to be a financial burden on the state by relying too much on the welfare system.

The entrance to the Jobcenter in Düsseldorf,

The entrance to the Jobcenter in Düsseldorf, North Rhine-Westphalia. Photo: picture alliance/dpa | Oliver Berg

While everyone needs a helping hand from time to time, claiming benefits like long-term unemployment benefit (Bürgergeld) or housing benefit (Wohngeld) to top up your income sadly shuts you out of the naturalisation process and could also make it hard for you to qualify in the future. 

Luckily, this doesn’t apply to all types of state support – Kindergeld, ALG I and Bafög don’t count, for example – so seek advice from a lawyer or your local citizenship office if you’re unsure.

How old are you?

Though this is hard to fully quantify, age can sometimes play a role in assessments of your financial fitness in Germany.

A young person fresh out of university or vocational college may be seen as someone with high earning potential over the years, so in some cases the authorities may take a more relaxed approach to their current income.

In contrast, an older person coming to the end of their working life could be held to slightly stricter standards. 

This is also why it can be important to show that you have sufficient pension contributions or another form of security for the future, such as owning your own home or having lots of savings. 

READ ALSO: How can over 60s get German citizenship under the new nationality law?

What counts as ‘income’ under German law?

It’s important to note that income doesn’t just have to mean the salary you get at your job: income from rental properties, side hustles and freelance gigs can also be included, as well as things like alimony payments after divorce.

Once again, if you’re unsure, just ask. The citizenship offices are there to advise you and should give you clear instructions about what kind of documents count as proof of income in your application. 

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