Average Salary in Germany

Table of Contents

What is the average salary of a German worker?

Germany’s average monthly wage for a full-time employee is 3,810 EUR. Salary ranges from EUR 960 to EUR 17,000 depending on experience.

With housing, transportation, and other perks all taken into account, this is the typical monthly wage. The earnings potential of many professions varies enormously. See below for individual job title wages if you’re interested in the compensation of a certain position.

This figure doesn’t include self-employed or freelance workers, who make up a significant portion of the German workforce.

Pay Scale Distribution in Germany

Salary Level

Germany’s monthly wages vary from 960 EUR to 17,000 EUR. The average salary is approximately 3,770 EUR. The middle 50% of earners make between 2,460 EUR and 5,040 EUR per month while the top 10% earn more than 8,450 EUR per month.

The minimum wage in Germany is currently 9.35 EUR per hour (as of January 2021). This equates to a monthly salary of 1,609.60 EUR for a full-time worker (40 hours per week).

However, the minimum wage only applies to workers aged 18 years and over. Workers aged under 18 can be paid up to 30% less than the standard minimum wage. For example, if the hourly minimum wage is 9.35 EUR, then an under 18-year-old worker can be paid up to 6.54 EUR per hour.

Median Salary

Half of the population earns less than 4,120 EUR per month, while the other half earns more than 4,120 EUR monthly. The median salary is the salary at which half the population earns more than this amount and half the population earns less. This is different from the average salary, which is calculated by adding all salaries together and dividing by the number of people.

In Germany, the median salary is lower than the average salary. This is because there are a small number of high earners (such as CEOs and managers) who earn much more than the majority of workers.

The median salary can be affected by factors such as age, experience, location and sector. For example, young workers tend to earn less than older workers, and workers in cities usually earn more than those in rural areas.

Percentiles

There is a quarter of the population earns less than 2,290 EUR, while 75% of the population earns more than 2,290 EUR. This is known as the first quartile.

The second quartile is the salary at which half the population earns more than this amount and half the population earns less. This is 4,120 EUR in Germany.The third quartile is the salary at which 75% of the population earns more than this amount and 25% of the population earns less. This is 5,950 EUR in Germany.

The fourth quartile, or upper quartile, is the salary at which 90% of the population earns more than this amount and 10% of the population earns less. This is 8,450 EUR in Germany.

The top 10% of earners in Germany make more than 8,450 EUR per month. The bottom 10% of earners make less than 960 EUR per month.

How does the median pay differ from the average wage?

Both average salary and median salary are indicators. They are used to compare and contrast different data sets. They can both be affected by factors such as age, experience, location and sector.

The main difference between the average salary and the median salary is that the median salary is the salary at which half the population earns more than this amount and half the population earns less. This is different from the average salary, which is calculated by adding all salaries together and dividing by the number of people.

Salary by Experience in Germany

How does the wage of a German employee change over time?

In general, salaries in Germany tend to increase with experience. This is especially true for employees in the private sector. For public sector employees, wages are more likely to be determined by educational level and job position.

Experience is important to employers in Germany, and it is usually reflected in salaries. Employees with more experience tend to earn more money than those who are just starting out.

This is especially true in the private sector, where wages are often based on an employee’s skills and experience.

Comparing German Salaries Based on Education

Is there a correlation between your education level and your pay?

The answer, as you might expect, is yes. In Germany, those with higher education make more money than those without one.

The average salary in Germany will differ based on the individual’s educational attainment. According to the German Federal Statistical Office, the average salary of a person with a university degree was €3,670 per month in 2019. This is almost double the average salary of €1,900 for someone without an upper secondary school diploma.

While a university degree will no doubt lead to a higher paying job, it is not the only factor that contributes to earnings. Other important factors include experience, position within the company, and industry sector.

For example, someone with a university degree who works in the finance sector will likely earn more than someone with the same degree working in the retail sector. Similarly, someone with 20 years of experience will usually earn more than someone who just graduated from university.

Gender-Based Pay Comparability in Germany

On average, men workers in Germany earn 6% more than their female colleagues, regardless of their field of industry. This gender-based pay gap has been steadily decreasing over the past decade and is lower than the EU average of 16%.

However, women in Germany still face many obstacles in achieving parity with men in terms of salaries and career advancement.

There are a number of reasons for this discrepancy, including the prevalence of women working part-time, occupational segregation, and the tendency for women to take on more domestic responsibilities than men.

Despite these challenges, the overall trend is positive, and it is expected that the gender pay gap will continue to narrow in the coming years.

Annual Percentage Increase in Germany’s Salary.

Do yearly salary increases in Germany? Are increases given to workers on a more regular basis?

German employees may expect to have an 8% rise in their wage every 16 months. However, this does not include those in managerial positions or highly-skilled professionals.

They may instead receive an annual bonus of up to 10%. The amount of the raise or bonus will be based on individual and company performance.

Annual Germany Increment Rate by Industry

Healthcare – 9%
Banking – 8%
Business – 5%
Information Technology – 4%
Tourism – 6%

The average salary in Germany is expected to rise by 4% in. This increase is mainly due to the strong performance of the German economy, which is projected to grow by 2.5% in 2021 and 3.0% in. The highest annual growth rates are expected in the healthcare, banking, and tourism industries.

Even though the cost of living has been rising steadily in recent years, salaries have not kept pace.

Salary Growth Averages by Level of Experience

German workers on a junior level basically receive around a 3-5% salary increase annually. However, the salary growth is lower for positions with a lot of experience. On the other hand, if you are very experienced and highly skilled, you could end up getting a raise of 8% or more.

When it comes to promotions, things work a bit differently in Germany. Unlike in other countries where promotions are given based on merit, German companies tend to promote employees based on their time with the company and their seniority. Of course, this is not always the case, but it is more common than in other countries.

So, if you are looking to advance your career in Germany, it is important to be patient and to focus on building up your experience with one company.

Payouts of Bonuses and Other Incentives in Germany

How much are the bonuses, and how frequently do they get handed out?

When asked about bonuses and incentives, 41% of German employees stated they had none, while 59% indicated they had gotten some type of monetary reward. Of those that did receive bonuses or incentives, the median amount was around €1,200 per year.

The most frequently cited type of bonus was an annual performance-based bonus (30%), followed by a sign-on bonus (16%).

When it comes to other types of incentives, such as stock options or profit-sharing, only 3% of respondents said they had received them in the past year. This suggests that these types of benefits are much less common in Germany than bonuses.

Overall, it seems that bonuses and other financial incentives are not as common in Germany as they are in other countries. However, for those who do receive them, the amounts can be significant.

Various Forms of Bonus Payments

Individualized Performance Bonuses

This kind of bonus is given by a company that wants to motivate its employees to achieve better performance levels. The bonus is determined by how well the employee performs their job duties.

This type of bonus can take different forms, but the most common one is a monetary bonus. Other forms of bonuses can include paid time off, extra vacation days, or even company stock options.

Bonuses for Corporate Performance

In some cases, a company will give bonuses to all of its employees based on the company’s overall performance. This is common in sales-based organizations, where employees may receive a bonus for a meeting or exceeding sales targets.

These kinds of bonuses usually take the form of a percentage of an employee’s salary. For example, an employee who makes 50,000 EUR per year might receive a 2% bonus if the company meets its sales goals.

Goal-based Bonuses

Another type of bonus that may be offered by a company is a goal-based bonus. This kind of bonus is given to employees who meet or exceed specific goals that have been set by the company.

For example, a goal-based bonus could be given to an employee who successfully completes a difficult project on time. These bonuses can take different forms, but they are often monetary bonuses.

Holiday/Year-End Bonuses

In some cases, a company will give its employees a bonus around the holidays or at the end of the year. This is often done as a way to show appreciation for the work that the employees have done during the year.

These kinds of bonuses usually take the form of a monetary bonus, but they can also take other forms, such as extra vacation days.

Comparison of Bonuses for Different Jobs in Germany

Is it possible to earn excellent incentives and a large salary in the same position?

In Germany, it is possible to achieve both a high salary and an excellent bonus. Different jobs in various sectors offer their employees different types of bonuses, but all these bonuses come with the expectation of good work and results.

Below are some examples of the types of bonuses that exist in different workplaces in Germany.

Salespeople

Employees who work in sales may be eligible for a bonus based on the commission they earn. The bonus percentage may vary depending on the company, but typically, salespeople can earn 5-10% of their total sales as a bonus. For example, if a salesperson sells €100 worth of products, they would earn a €5-10 bonus.

Managers

Bonuses for managers usually come in the form of a percentage of the profits they helped generate. For example, if a manager helped generate €100 in profit for their company, they may receive a €10 bonus.

The bonus percentage may vary depending on the company, but typically, managers can earn 1-5% of the profits they generated as a bonus.

Employees with exceptional performance

Some companies also offer bonuses to employees who have gone above and beyond expectations. These bonuses are typically given at the discretion of the manager and are not based on any specific metric.

For example, an employee who consistently arrives to work early or stays late may be eligible for a bonus.

Comparison of Bonuses based on Seniority Level in Germany

Senior-level workers in Germany make 2.8 times more in bonuses than entry-level workers, on average. This is according to a study by the Hay Group, which analyzed data from over 700 companies in the country.

The average bonus for a senior-level worker is €12,600, while the average for an entry-level worker is €4,500. The highest-paid senior executives make €21,000 on average in bonuses, while the lowest-paid get €5,400.

Salaries For Prominent Professions in Germany

Health and Medical

Dentist – 8,660 EUR
Dietitian – 7,210 EUR
Laboratory Technician – 2,770 EUR
Surgeon – 12,910 EUR
Therapist – 6,620 EUR

Law

Judge – 7,830 EUR
Lawyer – 7,750 EUR
Paralegal – 2,980 EUR

IT and Technology

Computer Programmer – 4,040 EUR
Database Administrator – 3,950 EUR
Information Security Analyst – 5,560 EUR
Network Architect – 6,780 EUR
Web Developer – 4,070 EUR

Business and Finance

Accountant- 4,570 EUR
Auditor- 5,840 EUR
Banker- 7,280 EUR
Economist- 5,390EUR
Investment Banker- 8,650EUR

Comparison of Salary by City in Germany

Berlin earns the most with an average salary of 4,340 EUR and Munich second-most with an average salary of 4,280 EUR.

Frankfurt is Main is in third place with an average salary of 4,140 EUR. Cologne and Stuttgart follow with salaries of 4,070 EUR and 3,990 EUR respectively. Hamburg rounds off the top six cities in Germany with an average salary of 3,860 EUR.

The highest-paid workers are in the financial and insurance sector where the average salary is 5,070 EUR per month. The second highest paying sector is information and communication with an average salary of 4,950 EUR. Energy supply comes in third place with an average salary of 4,560 EUR per month.

While Berlin may have the highest average salary, workers in Munich actually have the highest disposable income when the cost of living is taken into account.

This is because Munich has the second-highest cost of living in Germany, after Frankfurt. When factoring in the cost of living, workers in Frankfurt have the lowest disposable income.

Germany’s Hourly Rate

In Germany, the average hourly salary (pay per hour) is 22 EUR. As a result, the typical German earns around 22 EUR for every hour of labor spent. This average hourly wage can differ greatly depending on the field of work. For example, a plumber in Germany might earn 28 EUR per hour while a daycare worker could earn only 11 EUR per hour.

The minimum wage in Germany is currently set at 8.84 EUR per hour. This means that any job which pays less than 8.84 EUR per hour is considered to be underpaying its workers. While some argue that the minimum wage should be raised, others argue that it should be lowered or even eliminated altogether.

The Salary Differences Between the Government and Private Sector

There is a 5% wage advantage for public sector workers in Germany over private-sector workers across all industries. The highest average hourly salary in Germany is found in the public sector accounting and finance industry at €44.20.

Public sector workers in the information technology industry earn an average of €41.10 per hour, while those in the human resources industry earn €40.50 per hour on average.

The lowest hourly salaries in Germany are found in the retail and wholesale trade industry at €9.90 per hour. Workers in the accommodation and foodservice industry earn an average of €10.50 per hour, while those in the arts, entertainment, and recreation industry earn €11.30 per hour on average.