MINIMUM AND AVERAGE SALARY IN GERMANY

For many years, Germany has been a leader in Europe in terms of economic development and income growth among different segments of the population. This year, experts of the consulting company Korn Ferry Hay Group predict a further increase in real wages in this country. In the European Union, only residents of some Scandinavian countries earn more than Germans.

Salary in Germany

Germany's population will exceed 83 million in 2024. For comparison, in Luxembourg, where also high salaries, lives a little more than 658 thousand. Of course, the real income of German workers is affected by many factors, including taxes and social contributions. In addition, salaries vary by region and profession. We will talk more about salaries in Germany in 2024 below.

Minimum wage in Germany

According to official data from the German Federal Statistical Office, the minimum wage in Germany in 2024 is 12.41 euros per hour. Note that the minimum rate was first introduced only in 2015 after a decade of political wrangling and at that time amounted to €8.50 per hour. In nine years, the level of hourly minimum wage in Germany has increased by 3.91 euros, and compared to 2023 by 0.41 euros (3.3%).

Despite some resistance from Germany's major industrialists and entrepreneurs, time has shown that the innovation has fully justified itself. The employment situation in the country is stable, unemployment is decreasing, and the purchasing power of Germans is growing. Moreover, the income gap between the local population has narrowed, and in many regions and spheres of activity unskilled workers began to receive significantly more.

Some sectors of the German economy have different minimum wage rates, ranging from 12.30 euros per hour (meat processing industry), to 19.15 euros per hour (teaching staff with additional qualifications).

MINIMUM WAGE IN GERMANY

Field of activity Euro per hour
Pedagogical staff with additional qualifications 19.15
Pedagogical staff 18.58
Glass and facade cleaning activities 16.70
Prolonged care 14.15
Trade in electrical equipment 13.95
Trade in roofs 13.90
Trade in construction timber 13.60
Internal and technical cleaning 13.50
Meat-processing industry 12.30

The minimum wage requirements do not apply to freelancers, self-employed persons and minor workers (under 18 years of age) without professional education. In addition, internships of up to 3 months and internships do not guarantee 12.41 euros per hour. Assuming a 40-hour work week, the minimum gross salary in Germany is 2,151 euros per month.

Important.. The next increase of the minimum wage in Germany to 12.82 euros is scheduled for January 1, 2025.

For unskilled German workers in long-term care (caregivers), the minimum wage rates are €15.50 per hour as of May 1, 2024. To calculate the exact monthly minimum wage in Germany, use the online calculator.

Average salary in Germany

According to the Federal Statistical Office, the average salary in Germany in 2024 is €4,105 per month before taxes (gross). Men earn 23.20 euros per hour and women 19.12 euros per hour. After tax deduction (net), a German worker is left with around €2,800. This is without taking into account the various allowances and bonuses, which are very common in Germany.

It is also necessary to take into account the geographical specifics. For example, work in Germany in the eastern part of the country is less accessible and the salary is lower than in the western part. Let's outline the average level of remuneration of German specialists depending on the sector of economy. The information is based on current data from the German Federal Statistical Office.

SALARY IN GERMANY BY SECTOR OF ECONOMY

Sector of economy Euro per month
Financial and insurance services 5,636
Information and communication 5,509
Electricity supply 5,180
Professional, scientific and technical services 5,141
Education 4,634
Mining 4,351
Production 4,277
Public Administration and defense 4,193
Industrial and economic services 4,098
Real estate 4,002
Water supply 3,780
Art, entertainment and leisure 3,625
Construction 3,472
Transportation and storage 3,299
Accommodation and food 2,480

For the fifth consecutive year, average wages rose in Germany. On average, nominal earnings of German workers are rising by 2-3%. Wages are influenced by factors such as education, experience, qualifications, profession and area of economic activity.

SALARY IN GERMANY BY OCCUPATION

Occupation Euro per month
Doctor 5,000/5,500-7,100
Lawyer 5,900
Engineer 5,600
Programmer 5,000
Architect 4,400
Banker 4,300
Tax consultant, auditor 4,200
Professional worker (welders, electricians) 4,100
Teacher 4,000
Builder 3,900
Police officer 3,750
Accountant 3,600
Nurse 2,900
Machinist 2,800
Janitor, garbage collector 2,500
Driver 2,200
Cook 1,900
Cleaner, waitress 1,600-1,800

HIGHEST PAID PROFESSIONS IN GERMANY

    • Doctors

    • Chief Executive Officers (CEOs)

    • Executive engineers

    • Programmers

    • Lawyers

    • Pharmacists

    • Airline pilots

    • Investment bankers

    • Sales managers

    • Key account managers

Payroll taxes in Germany

It is a well-known fact that tax rates and mandatory social contributions on salaries of salaried employees in developed European countries are very high. Germany is not an exception. The country uses a progressive scale of taxation, that is, the more an employee receives, the higher the income tax rate.

INCOME TAX IN GERMANY IN 2024

Annual income (euros) Tax rate (%)
Up to 11,604 0
From 11,604 to 66,760 14%
From 66,760 to 277,825 42%
More than 277,825 45%

Five social contributions are withheld from the salaries of German employees. The total payment amounts to about 40% of income. At the same time, half of the amount (20%) is paid by the employer.

Social contributions from German salaries in 2024

  • Pension – 18.6% (9.3-9.3%)

  • Unemployment insurance – 2.4% (1.2/1.2%)

  • Health insurance – 14.6% (7.3/7.3%)

  • Care insurance (disability, old age) – 3.05 (1.525/1.525%)

  • Accident insurance – depends on industry and accident risk (employer only)

  • Insolvency contribution – 0.09% (employer only).

In addition, a so-called solidarity tax of 5.5% applies in Germany, and people of faith pay a church tax of 8-9%. The obligation to charge and pay to the German budget taxes on the income of employees is imposed on the employer.

Sometimes it is allowed to reduce the tax base, for example, in the presence of minor children or in the case of filing a tax return together with a spouse.

Salaries by region in Germany

The level of average salary in Germany depends largely on the region and the particular city where the professional activity is carried out. For example, if you are employed in Frankfurt, you can expect a higher salary. In general, the income of Germans living in the west of Germany is significantly higher compared to the east, and the overall pay gap in some regions reaches 35%.

Salary in Germany by city

City Euro per month
Mannheim 4,460
Essen 4,150
Frankfurt 4,100
Hamburg 4,050
Nuremberg 4,000
Munich 3,950
Bremen 3,650
Berlin 3,600
Saarbrücken 3,450
Dresden 3,100

Mecklenburg-Western Pomerania provides the lowest income for the local population, while Hesse provides the highest. In the first case, salaries lag behind the national average by about 25%, while in the second case they exceed it by more than 10%. The economically developed German city of Frankfurt am Main stands out.

High wages are observed at companies in the states of Baden-Württemberg, Bavaria and Hamburg. The most attractive cities in Germany are Stuttgart, Munich and Wiesbaden. By the way, in the German capital Berlin, the average wage is slightly lower than in the country as a whole.

Cost of living in Germany

Unlike many other members of the European Union, the cost of living even in large German metropolitan areas is considered quite reasonable. According to experts, the best cities to live in Germany are Munich, Berlin, Düsseldorf, Frankfurt and Hamburg.

Basic costs in Germany:
  • Rent: 900-1,000 euros per month for a one-bedroom flat in the centre.

  • Utility bills: 250-350 euros per month.

  • Food: 200-300 euros per month per person.

  • Transport: 50-100 euros per month by public transport or 100-200 euros per month by car.

  • Internet/mobile phone: 60-80 euros per month.

  • Clothing and leisure activities: 400-600 euros per month.

Frequently asked questions about salaries in Germany:

  1. What is the average salary in Germany?

    • According to the German Federal Statistical Office, before taxes, the average salary in Germany in 2024 is €4,105 per month.

  2. What is the minimum wage in Germany?

    • According to official data from the German Federal Statistical Office, the minimum wage in Germany in 2024 is €12.41 per hour.

  3. Which job brings the highest income in Germany?

    • According to German recruitment agencies, the highest paid professions in Germany are doctors and CEOs of large companies.

  4. Which job brings the lowest income in Germany?

    • The lowest income in Germany is received by representatives of unskilled labor – cleaners, waiters, salesmen, maids and so on.

  5. What is the average salary of programmers in Germany?

    • The average income of programmers in Germany is estimated in the range from 60,000 to 95,000 euros per year, depending on the position and skills.

  6. What is the payroll tax in Germany?

    • The income tax rate in Germany depends on annual income and ranges from 0% (income up to €11,604) to 45% (income over €277,825).

  7. What is the average median salary in Germany?

    • According to current data from Stepstone, the average median salary in Germany in 2024 is €3,645 per month.

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