MINIMUM AND AVERAGE SALARY IN GERMANY

Germany is located in the center of Europe, washed by the waters of the Baltic and North Seas. It borders with Denmark in the north, Poland and Czech Republic in the east, Austria and Switzerland in the south, France, Luxembourg, Belgium and the Netherlands in the west. It is the most economically developed state in the European Union with high living standards and decent wages.

Salary in Germany

The population of Germany is about 83.8 million people. Millions of foreigners from different parts of the world dream to live and work in this country. Besides ethnic Germans, there are many Turks, Italians, Greeks, Poles, Russians, and representatives of other nationalities. Let's find out what salaries in Germany in 2020.

Minimum salary in Germany

According to the German government, the official minimum wage in Germany since January 1, 2020 is 9.35 euros per hour. Monthly income is 1,621 euros, and annual 19,452 euros. Compared to last year, the minimum wage in Germany increased by 28 euros per month (1.7 percent). Inflation at the end of 2019 was 1.5%, so the purchasing power of German workers has increased.

Important. Over the past 5 years, the hourly minimum wage in Germany increased by 0.85 euros – from 8.50 euros in 2015 to 9.35 euros in 2020.

The minimum wage law in Germany was introduced only on January 1, 2015 by the third government of Federal Chancellor Angela Merkel. This was a central promise during the election campaign in 2013. Previously, rates were set based on collective agreements between trade unions and entrepreneurs.

The federal minimum wage in Germany applies to almost all employees, including foreign specialists, part-time trainees and people working during probationary periods. The exceptions are freelancers and self-employed and in the case of internships that last less than three months or are part of university courses, volunteer work or apprenticeships.

Some industries in Germany have higher minimum wage rates.

MINIMUM WAGE IN GERMANY

Scope of activity Euro per hour
Pedagogical staff with additional qualifications 16.39
Pedagogical staff 16.19
Senior Construction works of limited qualification level 15.40
Glass and facade cleaning activities 14.10
Trade in treatment facilities 13.20
Simple construction and installation works 12.55
Trade in roofs 12.40/13.60
Stone masonry and stone carving 12.20
Trade in electrical equipment 11.90
Trade in construction timber 11.88
Prolonged care 11.35
Internal and technical cleaning 10.80
Waste Management 10

Average salary in Germany

According to official data from the Federal Statistical Office, the average salary in Germany in 2020 is 4,035 euros per month before taxes (gross). After all mandatory deductions, about 2,800 euros (net) remains at the disposal of local workers. Compared to last year, German income increased by 3.2 percent. Women in Germany earn on average 17.72 euros per hour, which is 20% less than men's – 22.16 euros.

In 2020, Germany's highest-income sectors are "electricity," "information and communication" and "financial and insurance services. Here, employees earned an average of 5,189 to 5,447 euros per month. The lowest gross monthly earnings were recorded for accommodation and catering activities – 2,480 euros.

The average salary of doctors in Germany (health workers and nurses) in 2020 is 3,502 euros per month. Specialists in nursing homes receive about 3,116 euros. Management staff in hospitals earn an average of 8,545 euros per month, and specialists with high qualifications and experience earn up to 4,524 euros. By comparison, the food retail sector generates an average income of about 2,480 euros per month.

SALARY IN GERMANY BY SECTOR OF ECONOMY

Sector of economy Euro per month
Financial and insurance services 5,447
Information and communication 5,217
Electricity supply 5,189
Professional, scientific and technical services 4,990
Education 4,526
Art, entertainment and leisure 4,259
Real Estate 4,234
Processing industry 4,232
Mining 4,116
Production 4,103
Industrial and economic services 4,010
Public Administration and Defense 4,007
Service sector 3,996
Water supply 3,549
Construction 3,485
Transportation and storage 3,160
Accommodation and Power 2,480
Other services 3,799

Note. Information on minimum and average wages in Germany by sector is based on current official data from the German Federal Statistical Office.

In conclusion, we note that the unemployment rate in Germany is about 3.2%, and the income tax rate in 2020 ranges from 0% (income up to 9,408 euros per year) to 45% (income over 270,500 euros per year).

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