What Is Considered a Good Salary in Germany?

One important factor to consider when deciding to move to Germany or any other foreign country is how much we can earn and whether it will be enough to maintain a good standard of living. However, if you ask people in Germany what a “good” salary is, you’re likely to get ten different answers—or most probably no answer at all. That’s because salary is a very private topic in Germany. Most people avoid talking about how much they earn, and this lack of transparency from both employers and employees means one thing. It isn't easy to understand our true worth in the German job market. We dive deep into this topic and try to answer two key questions: how much do people earn in Germany? And what is considered a good salary?

Salary Details

Before we get into the numbers, it’s important to understand what salary means in Germany, because it’s not as simple as you think. Your salary, or so-called Brutto, is the amount your employer agrees to pay you, as written in your employment contract. However, we have to keep in mind that salary is a gross value, meaning it’s the amount before deductions. These are taxes, insurance, and other social security contributions. And together, they come to around 30-40% of your salary, and this is the money that never reaches your bank account. What you actually receive in your bank account each month is your net income, or Netto. If you check your payslip, you can see all these deductions clearly listed. So it is very important to remember this difference between Brutto and Netto when negotiating your salary. It’s not just about how much you earn on paper, but how much of that can you actually take home and spend.

And to get an idea about how much one can earn in Germany, we can refer to the 2024 salary report published by the leading job portal Stepstone. According to the report, the average salary in Germany is about €50,250 per year or roughly €4,300 per month. However, this doesn’t mean that most people earn this amount. This is because average is simply half the sum of the lowest and highest values, and there exists a huge gap between high and low earners in Germany. And this pulls up the average value.

To get a more accurate picture, it’s better to look at the median salary. Unlike the average value, the median takes all incomes, arranges them from lowest to highest, and finds the middlemost value. So it can give a better idea of what a typical worker earns. Luckily the report also shares the median salaries, which come to around €43,750—about €7,000 less than the average.

However, even the median doesn’t tell the full story. Because someone working at a local restaurant may earn significantly less than someone employed by a multinational company. So, we have to go one level down and check four key factors that influence our pay scale in Germany. And the most important of these is the industry we work in.

Industry and Profession

Each sector normally has its own pay scale, so your earnings will largely depend on whether you work in IT, medicine, finance, or other. So let’s go back to the report and take a closer look at how much each industry pays on average. The high earners are professionals working in tech and medical fields. Specialist doctors and IT managers easily make well above €90,000 per year. Similarly, another top-paying industry is banking. Here a median salary could be €63,250 per year on average. Close behind are industries such as aerospace, pharmaceuticals, science and research, and insurance, where median salaries range between €56,000 and €57,000 annually.

On the other hand, salaries are generally lower in industries such as transport and logistics, tourism, agriculture, hospitality, and creative fields. Here median salaries typically range between €35,000 and €38,000 per year. Jobs like cashiers, kitchen assistants, and cleaners often earn less than €36,000 annually. And earnings can drop even further for someone working part-time. But even within the same industry, there can be significant differences in salaries depending on the size, reputation, and location of the company.

Company

It's a fact that large, well-known companies generally offer higher salaries compared to smaller, lesser-known firms. This difference could be as high as €15,000 annually for the same position. Along with size, another factor that can highly influence the pay scale is the location of the company. Companies situated in major cities often provide higher pay to account for the higher cost of living.

For example, Hamburg has the highest median income in Germany at €49,750, making it one of the top-paying regions. On average, the southern states tend to offer slightly higher salaries, although they also come with higher living costs. Baden-Württemberg has a median salary of €47,000, slightly above Bayern (Bavaria) at €46,000 and Berlin at €46,500. If we come to the cities, at the top there is Munich, with a median salary of €56,250, followed by Stuttgart, Wiesbaden, and Düsseldorf, which also offer competitive salaries. These cities are home to major industries such as Daimler, BMW, and Bosch and typically have higher costs of living, which in turn explains the higher pay scales.

But there is one thing worth noting. Even after thirty years of reunification, there exists a clear disparity in earnings between the West and the East. The five states that were part of the former East Germany, or GDR, normally find their place at the bottom of salary lists, with one exception, Berlin, because of its status as the capital and higher economic growth. Now if we move one level deeper, even within the same company, there could be differences in pay scale based on two key factors: qualification and experience.

Qualification & Experience

Let's go back to the report and look at some numbers. In Germany, those with a bachelor’s degree earn an average of €4,551 per month. A technical college qualification can get you slightly more, at €4,826 monthly. Those with a diploma or master’s degree earn an average of €6,188 per month. And finally, at the top end, individuals with a doctorate earn an average of €8,687 per month. This shows that formal education can have a significant impact on your earnings in Germany. Higher education means higher pay.

However, practical work experience also plays an important role. For example, an engineer with less than a year of experience might earn below €50,000 annually. But as you acquire more skills and the more experienced you become, the higher your salary is going to be.  Then there is another factor that ideally shouldn’t have any influence on the earnings, but unfortunately still does.

Gender

Like in many other countries, Germany also has a noticeable gender pay gap. On average, women earn around €5000 less than men for the same roles. The good news is that there are efforts being made to address this gender pay gap. The federal government has set a goal to reduce the gap to 10% by 2030; however, the gap remains significant, especially in West Germany, where it stands at 19%, compared to just 7% in East Germany.

Now, let’s address the most important question: What is considered a good salary in Germany?

What is a Good Salary?

The reports and median values can give you a sense of where you stand. However, deciding what counts as a “good” salary is a personal choice. And will depend on factors like your lifestyle, dependents, and individual needs. According to an older StepStone survey, 43% of respondents were satisfied with salaries above €64,000 annually, while 41% were dissatisfied with salaries at or below €49,000 annually. Ultimately, everyone should find their own sweet spot based on their lifestyle needs and adjust their expectations if necessary.

But always keep in mind there’s more to life than just the numbers on your paycheck. I know money is an important factor in happiness, but money alone can’t make one happy. Working 60 hours a week just to be a high earner and maintain a luxury lifestyle may not be worth it for everyone. I believe that having time for family, friends, and personal interests is equally, if not more, important. In the end, it’s about finding a balance between how much we earn and how much time we have for ourselves.

Disclaimer: The Content is for informational purposes only, you should not construe any such information or other material as legal or other advice. It is important to do your own analysis before making any decision.