How Much Is Considered A Good Salary in Germany [2023]

by | Apr 27, 2022 | Work in Germany

Home 9 Work in Germany 9 How Much Is Considered A Good Salary in Germany [2023]
Are you looking for a great salary in Germany? You’re in luck! As one of the most economically stable countries in Europe, Germany offers a wide range of salaries for job seekers. Plus, the country is home to some of the world’s most prestigious companies and organizations, so you’re sure to find a job that meets your needs and expectations. 

In this article, we’ll outline some of the best salaries that you can expect in Germany, as well as provide information on the required qualifications and experience required for each position. Ready to start your search? 

Let’s get started!

Germany is a wealthy country and, therefore, the average salary here is high. However, there are many different salaries that can be earned depending on the position someone holds.

What is The Good Average Salary in Germany 2022

Based on statistics, it seems that Germany is a good place to live if you are looking for a salary between 2,500 EUR and 3,000 EUR per month. If we talk about the average gross wage in Germany for the year 2021 that is 56,985 EUR or 34,126 EUR after-tax for a single person. This stimulates a 2,843 EUR net monthly salary. 

A monthly net income of 2,500-3,500 EUR is considered to be a good salary in Germany. This would allow you to afford a decent life in a large German city, including renting a 2 bedroom apartment, regularly eating out and weekends away.

This is the average monthly salary including housing, transport, and other benefits. Salaries vary drastically between different careers.

Which Factors Will Influence Your Salary in Germany?

There are multiple factors that influence your salary in Germany like it could be your city, your education, professional experience. Each of these factors plays a role. Here you will find an in depth explanation of each factor.

City/Region

Salaries tend to be higher in these areas, but there are more jobs to choose from, so it’s not as difficult as it may seem to find one. Factors such as salary, job opportunities, rent prices, and other costs should all be taken into account before making a decision.

Rent is a big expense, so if your rent eats up more than a third of your income, it’s worth considering whether the salary benefits are worth it. 

To get an accurate answer to this question, you’ll need to do some calculations based on your own situation and budget.

Level of Education

The cost of living in Germany is high, so it would not be worthwhile to live there if you are not already doing so. If you qualify for a lower-paying job or entry-level position, those salaries won’t typically pay enough to outweigh the higher costs of living.

If you want to live and work in Germany, the best option may be to obtain a degree or postgraduate qualification in a MINT field. However, this is not always easy, so make sure you market yourself well and put together an attractive package of skills and experience. And don’t forget about salary negotiations – having letters after your name can really help!

Professional Experience

Many positions that require university degrees or postgraduate qualifications in Germany have a skills shortage. In contrast, many positions that do not require such qualifications are currently being filled by candidates who do not meet the required standards. 

This indicates a serious problem with the country’s talent pool and suggests that there is an acute need for improvement in vocational training and educational programs to ensure more people are able to fill these roles.

There are many job opportunities in skilled trades and professions where there is a worker shortage, so if your area of expertise is on the white list, your chances of finding a job and earning a good salary are very good. Having the right qualifications, several years’ relevant work experience, and fluency in German or being able to learn up to B1/B2 standards before you apply will increase your chances even more.

The best way to increase your chances of finding a well-paid job is to have relevant work experience in the field you wish to work in. If you have a more generic arts or social sciences degree, your chances are going to be significantly lower.

Future Goals

Two very important factors to consider when thinking about moving to Germany are the cost of living and the availability of jobs. The price of goods and services in Germany is often much higher than what you will find in North America, but wages are generally considerably higher as well. 

Additionally, German companies tend to be quite competitive on salary offers so if you think that you have the necessary skillset for a successful job search here then your chances may be better.

A career in an international company is likely to be more challenging and rewarding than a salary-driven job back home.

Lifestyle

A good salary in Germany depends on your lifestyle, income expectations, and what you can afford. If you want to live a comfortable life while working here, aim for a high income rather than an average income and vice versa.

A good salary in Germany will depend on your lifestyle and expectations. If you are content to live modestly and do not need a lot of money to enjoy life, then you may be able to survive on considerably less than someone who is more extravagant or wants a higher standard of living.

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Let’s now wind up by considering all the above factors

There are a few factors you’ll need to take into account when asking this question: your experience, skills, level of education, and where you want to live. In general, the higher the salary in Germany is, the more qualified or experienced an applicant will be. Additionally, those with a degree usually earn more than those without one.

Given that you are looking to get a rough idea by considering the above factors, it is important to understand what your various scenarios options might be. The website Gehalt.de provides a very good overview of salary ranges in specific occupations.

Additionally, DeepL can help translate the occupation-specific information into English for easier reference.

Gross vs Net Salary in Germany 

Net income differs from the gross salary, in Germany, taxes and social security contributions are around 35% – 50% of an employee’s salary. This means that on an annual salary of 50,000 EUR, you would leave with 30,800 EUR per year or 2,560 EUR per month after tax is paid.

Bonuses and Remuneration Packages Beside Salary

In Germany, benefits such as company cars and performance-based bonuses are common incentives offered to employees. These may be subject to income tax if they are considered taxable salary payments.

There are many benefits to being recruited from abroad, including more generous remuneration packages such as health insurance, accommodation, or school fees. Your total net income is the sum of your salary, bonuses, and benefits in kind.

How Much Is Minimum Hourly Wage in Germany

The German minimum wage is currently €8.84 per hour and will rise to €9.19 per hour in 2021, €9.58 per hour in 2022, and finally to reach the new statutory minimum of €10.15 per hour from January 2025 onwards.

Average Salary Rate According to the German Pension Fund

Since 2006, the average gross salary rate in Germany has increased steadily by about 3.5%, reaching EUR 51,100 per year as of 2016. This indicates that wages are increasing quite rapidly not only in metropolitan areas but also throughout all regions of the country.

As of 2022, the average annual salary after taxes and social charges amounts to around 38,901 euros. This figure is impressive considering that it does not take into consideration any potential pension benefits. In order to calculate one’s net salary (after taxes and social security contributions), it would be advantageous to have a gross salary slightly higher than this amount in order to account for Pension Fund deductions.

Top 15 EU Countries with Average Salaries

StateGross in €Net in €
Switzerland65715414
Denmark61963914
Norway51953795
Luxembourg51433573
Iceland47393221
Austria45403104
Ireland40493041
Germany41682970
France41302791
Sweden41562770
Finland33802509
United Kingdom30652454
Belgium37752442
San Marino24452390

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