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Salaries in Germany

About salaries

If you’re thinking of moving to Germany to work, you’ll be interested in how much you can earn there. How do the wages compare with your own country? You should know what to aim for in salary negotiations. It can be challenging to calculate as it depends on so many different factors.

Factors to consider

It comes as no surprise that engineers in Germany tend to have good salaries. Engineers are in high demand, and job prospects are good. In the field of mechanical engineering, employees earn around 27% more than employees in all other industries. Individual salaries vary by factors such as age, seniority, industry, experience, working hours and geographical location. Starting salaries often depend on the level of your degree. In general, the bigger the company, the higher the pay. Companies often offer extra employee benefits such as bonuses or profit share schemes as part of their remuneration package. You can use a salary calculator Germany such as to give you a reasonable estimate.

Net Salary Calculator Germany

The amount you negotiate with your employer is your gross salary (Bruttogehalt). This is the total wages you earn before tax and social contributions are deducted. There is a fairly significant difference between your gross salary and what you take home each month. Income taxes and social contribution to pensions, unemployment insurance and health insurance add up to around 35% of your total pay. Your net salary (Nettogehalt) is what you receive in your bank each month. To get a better idea, you can use a net salary calculator Germany such as Social insurance contributions are obligatory, but your employer generally pays half of the costs. Some companies in Germany also offer additional compensation in the form of a “13th-month”, summer or Christmas bonuses, and performance-based commissions. Benefits can also include company cars, computers or mobile phones, but these are also subject to income tax.

Average Income in Germany

Working conditions and average salaries in Germany are far better than in many other European countries. According to a salary calculator Germany, the average wage is at an all-time high in 2020 at €4035 or €23.69 per hour. Engineers usually earn more than the national average. A mechanical engineer, early in his career, can make around €49,000 in Stuttgart. This figure increases with skills and experience; an experienced project manager in charge of a large team in his late-career could command up to €118K. Salary calculators Germany such as can make accurate predictions based on factors such as age, experience, area and size of the company. Expats coming to work in Germany are often offered generous remuneration packages including health insurance, private education for children or temporary accommodation. There is a gender pay gap in Germany, so women must negotiate hard to get what they're worth.

Minimum Salary Germany

Germany only introduced minimum wage regulations in 2014. Before this, the country primarily relied on trade unions and business groups to set minimum wages. The minimum salary Germany in 2020 is €9.35 per hour. The regulations do not cover freelancers and the self-employed. The minimum salary Germany also doesn’t apply to short term internships that are part of a university course, volunteer work or apprenticeships. The long-term unemployed are allowed to work for less than the minimum salary Germany for the first six months returning to work. Highly qualified professionals working in Germany can expect to earn far higher than the minimum of course. A mechanical engineer straight out of university could make from €39,000 per year.

Salaries in Germany – Mundialz

Mundialz wants to help you get started on your international career. Don’t let a fear of the unknown hold you back. We’re here to answer all of the tough questions you have when deciding to work abroad.

Let us boost your career, browse vacancies in Germany here.

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