Salary & average income in Germany
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If you are looking for a job or already working in Germany, you will undoubtedly have questions about what a fair wage in Germany is, how your salary and taxes are calculated, and how to understand your payslip. Our guide to salaries and the average income in Germany has a lot of the answers.
The difference between gross and net salary in Germany can come as a surprise to many expats, as the tax system in Germany may be different to that in your home country.
Your gross salary (Bruttogehalt) is your monthly or annual salary before deductions. The amount will usually be detailed in your employment contract.
Your net salary (Nettogehalt) is the amount you will receive each month into your bank account, once all taxes, social security contributions and other costs have been deducted.
If you are discussing salary with your employer, this will always be in terms of gross salary. Make sure you take into account the fairly big difference between gross and net income during any salary negotiations.
Altogether, income taxes and social security contributions will take up around 35% of your gross salary. For example, if your gross monthly salary is 3.000 euros, then after deductions you can expect to take home around 1.950 euros per month. To get a better idea of your net income, you can use a salary calculator.
According to the Federal Statistical Office of Germany (Destatis), in April 2023 the average gross annual salary was 51.876 euros, or 4.323 euros per month.
Individual salaries can vary greatly from this figure, as they are affected by factors such as age, seniority, industry, experience, working hours and geographical location. The tables below give an idea of how these factors can influence your pay.
Data from Destatis (from April 2022) shows how people with higher educational qualifications generally receive higher salaries in Germany:
Qualification | Average monthly salary |
---|---|
Doctorate | 8.687 euros |
Master's degree | 6.188 euros |
Master craftsperson / technician / technical school qualification | 4.826 euros |
Bachelor's degree | 4.551 euros |
Vocational training qualification | 3.521 euros |
No vocational training | 2.817 euros |
Destatis' data from 2022 also lists average salaries across a range of different occupations in Germany:
Occupation | Average monthly income (gross) |
---|---|
Pilot | 8.739 euros |
Doctor | 7.706 euros |
Software developer | 5.541 euros |
Firefighter | 3.845 euros |
Office worker | 3.649 euros |
Geriatric carer | 3.559 euros |
Mechatronics engineer | 3.204 euros |
Baker | 2.738 euros |
Chef | 2.590 euros |
Hairdresser | 1.778 euros |
Source: Destatis
The salary you can expect to receive is also affected by where in Germany you live. Typically, the larger cities will offer higher salaries to compensate for a higher cost of living. Jobs in eastern Germany also usually command a lower salary. The following table demonstrates how average annual salaries stack up in the different federal states:
Federal state | Average annual salary |
---|---|
Hamburg | 48.132 euros |
Baden-Württemberg | 47.962 euros |
Hesse | 47.762 euros |
Bavaria | 46.757 euros |
North Rhine-Westphalia | 44.230 euros |
Bremen | 43.434 euros |
Berlin | 43.179 euros |
Rhineland-Palatinate | 41.972 euros |
Lower Saxony | 41.924 euros |
Saarland | 41.462 euros |
Schleswig-Holstein | 40.820 euros |
Saxony | 37.037 euros |
Brandenburg | 36.607 euros |
Thuringia | 36.588 euros |
Mecklenburg-Vorpommern | 36.191 euros |
Saxony-Anhalt | 36.122 euros |
Source: Stepstone.de
Some employers in Germany also offer additional remuneration in the form of “13th-month”, summer or Christmas salaries, commission and performance-based bonuses. Benefits can also include company cars, computers or mobile phones. Note that these “benefits in kind” (geldwerter Vorteil) are also subject to income tax.
If you are recruited from abroad (e.g. by an international company), you may be offered an even more generous remuneration package: some expats are offered money to cover the cost of relocation, private health insurance, short-term accommodation or school fees for their children.
Your net salary, bonuses and benefits in kind all add up to equal your total net income.