Germany has a population of over 85 million inhabitants, it is the country with the largest population in the European Union and the second largest in Europe after Russia and is the third in the world in the number of foreign immigrants.
Wages are among the highest in Europe, only in some Scandinavian countries are wages higher.
The amount of wages is determined by several important factors such as,occupation,experience and region of residence.
The minimum wage for the country, which is set by law, is 12.00 euros gross per hour, which applies to all workers / workers who are not entitled to a branch minimum wage or do not have another collective agreement.
The average salary in Germany in 2023 is 4,093 euros.
The amount of payment depends on the type of work and the region of the Federal Republic of Germany. In particular, the least received on average car drivers – 2,293 euros, and the most surgeons. Their average income is about 5,500 euros. The average income of teachers in Germany is 3,600 euros.
Differences in average wages at regional level will be discussed in detail below. Here are a few examples. So, the average salary in Berlin is 3,464 euros, and in Frankfurt am Main – 4,587. Not surprisingly, the average income from work in the capital of Germany is smaller. After all, Frankfurt am Main is one of the world’s centers of economy and trade. Even the seat of the European Central Bank is located in this city.
Another economically highly developed region of Germany is Bavaria. The average salary in the capital Munich is one of the highest in the country. In 2023, its size is about 4,330 euros.
Wages by industry
It was said above that an employee’s income depends, among other things, on the field of work. Let’s take a look at the list of the most paid industries.
The highest wages in Germany for workers in the oil and gas sector of the extractive industry. For example, up to 7,000 euros “clean” can get not only drilling engineers, but also masters of oil platforms.
Work in the field of air transport in Germany is rated above average. Meanwhile, the strike of airline employees, including the presenter – Lufthansa, can not be called a rarity. During the protests, the employees of this airline insisted not only on raising their salaries, but also on solving the issue of early retirement benefits for health reasons.
Specialists in the field of information technology and telecommunications earn well in Germany. About 710,000 people are employed in the IT industry of this country and this industry is the second largest by volume.
Banking sector. The salary of employees of financial institutions largely depends on the region of the country in which the branch operates. In the eastern part of the country, bank employees, as a rule, receive less than their colleagues who work in the western regions.
Hotel business. The hotel business accounts for 40% of the gross income of the German tourism business. At the same time, the level of services provided in this segment of business activity is constantly increasing.
Let us illustrate in figures,wages in certain industries:
§ Gas and oil production -EUR 10 770 gross
§ Air transport – 7 880 to 15 380
§ IT industry – 7 380
§ Banking sector – 6190 (Saxony) – 8300 (Hesse)
§ Hotel business – 3 500
§ Catering – 3 400
§ Employment services – 3 260
Wages in Germany by occupation are determined to a large extent by labour market trends. There are areas where employers have to pay more so that good professionals are not attracted to competitors. Wage differentials are therefore quite significant.
But some other factors also affect the final value of this indicator. These will be discussed below.
Average salaries for professions in Germany, which are among the highest paid, are presented in a simple way:
§ Chief Physician of the medical institution – EUR 8 300
§ Engineer – up to 5 600
§ Programmer – 4 to 4 500
§ Dentist – 3 600 to 4 400
§ Fireman – 4 – 4 200
§ Policeman – 2 800 to 4 200
Representatives of the creative professions can also boast of a good income: actors, writers, designers, musicians, artists and people employed in the field of haute couture.
Salary by region
The salary for a particular position is determined by the employer together with the trade union. Therefore, the salary in the different administrative and territorial units of Germany is different.
The pay gap in the western and eastern regions is 35-40%.
The western and southern regions of the country have the highest wages, here are some of them:
§ Hessen
§ Bavaria
§ Baden-Württemberg
§ Hamburg
§ North Rhine-Westphalia
Payroll taxes
The gross salary is specified in the employment contract between the firm and the employee. And the net salary is transferred to the bank account of the employee of the company.
The following taxes are withheld from income from work in Germany:
§ Income tax. The rate is progressive:
• 0% if the annual income is not more than 8820 euros;
• 14% with an annual income of €8,820 to €54,058;
• 42% if the annual income is more than 54,058 but does not exceed €256,304;
• 45%. It applies when the annual income exceeds EUR 256 304.
§ Church tax. In Baden-Württemberg and Bavaria its percentage is 8%, in the other regions – 9%.
§ Solidarity tax – 5.5%.
§ Compulsory insurance:
• medical, the basic rate is 14.6%, half (7.3%) is paid by the employer;
• retirement 18.6% is deducted from gross wage;
• in need of care, 1.7% is deducted from the salary of the insured.
Generalization
The high level of wages, stable economy, wage regulation at the legislative level make Germany an attractive country for work.
High salaries are guaranteed for specialists with higher education and language proficiency.
Women earn on average 20-30% less than men.
Applicants who are without knowledge of German can only rely on the minimum wage set for the country.