Figures published by the Institute for German Economy have revealed how much people need to earn per month to be considered rich in Germany.
Data published by the Institute for German Economy found that any single person earning 3.700 euros per month after taxes is considered part of Germany’s rich, in the top 10 percent of earners.
For a couple without children, earning a combined net salary of 5.550 euros will place them in the top 10 percent. According to recent data published by property platform Immowelt, this is only 500 euros more than the amount couples with children require to buy a house in most German cities.
For single people, earning 4.560 euros would put them in Germany’s top 5 percent, and earning 7.190 would set them within the country’s richest 1 percent.
The average income after tax in Germany is 1.900 euros. But in order to assess inequality, the German Institute for Economic Research also considers assets owned in Germany. The institute deems anyone who holds at least 477.200 euros worth of assets to be part of Germany’s top 10 percent.
Assets most commonly include property, meaning anyone who owns a house worth more than this amount is considered in the top 10 percent. For most people working in Germany, buying a house is becoming increasingly unaffordable, further widening this asset inequality gap.
According to the institute, assets are what contribute the most to wealth inequality in Germany, with the top 10 percent of wealthy Germans owning 67 percent of assets in the country and 50 percent owning just 1,3 percent of Germany’s assets.
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