Ultimate guide: Earnings and Salary Structure in Germany

Earnings in Germany:

The Earnings and Salary Structure in Germany highly depends on the country’s Employment Law, which defines many policies regarding the payroll. Most of the regulations regarding payment of salaries and wages, are governed by Germany’s Civil Code, its Industrial Code, and other collective agreements.

Gross and Net Salary Structure in Germany:

The gross salary as deemed in your pay structure and the net salary you’re paid for a year in Germany are two different sides of the same coin. Your contract only states your Gross Salary – which is the income before tax deduction and the Net Salary is the actual amount that gets credited to your bank account.

The difference in both these amounts is highly dependent on the tax system in Germany which may likely be different from that in your home country.

It is important to familiarise yourself with the tax system of the state you’re working in to calculate your net income based on your gross salary.

Minimum wage:

€ 9.35per hour since January 1, 2020.

The minimum wage commission advises every two years on the adjustments to the level of the minimum wage. In doing so, it checks the level of the minimum wage that is suitable for contributing to an adequate minimum level of protection for employees, for enabling fair and functioning conditions of competition, and for not endangering employment.

Though there are some exceptions to this number based on employees’ age, status, or any applicable collective agreements. Trainees, those in entry-level qualifications, or those working as part of an apprenticeship or university course may also be exempted on a case-by-case basis.

According to the regulations of the Minimum Wage Act, the next adjustment of the statutory minimum wage will take place on January 1, 2021.

As per an important announcement Germany’s minimum wage will be raised over several stages, eventually amounting to €10.45 ($11.74) per hour by mid-2022

Germany also offers a wide variety of bonus, profit-sharing and incentive schemes that can be awarded to employees.

Sometimes companies also offer money to cover the cost of relocation, private health insurance or short-term accommodation. Some particular schemes employees should be aware of include:

• The ‘13th month’ or ‘13th salary’ payment: certain collective agreements allow German employees who have worked all 12 months of the year to receive full payment of a month’s wages as a year-end bonus (or a pro-rated amount for less than a year’s work). 
• Supplemental pay: which is granted in addition for various reasons, such as compensating for difficult job circumstances, work on weekends or at unsociable hours, and sometimes even a bonus is included when an employee goes on vacation.

While all other detailed schemes can be referred here.

Average Salary Structure in Germany

Individual salaries depend on factors such as geographical placements and industry type.

An overview of the top average salaries of professionals in popular departments is given below for your estimations as these numbers would provide you the approximate salary structure for professionals in Germany.

As of STEPSTONE SALARY REPORT 2020,

The top 10 cities with the highest average salaries in Germany are:

The top 10 sectors with the highest average salaries in Germany include: 

The average salaries for professional groups:

Occupation	Average annual income (gross)
Doctor	€ 92,316
Finance	€ 76,354
Law	€ 70,042
Banking	€ 65,006
Engineering	€ 64,541
Consulting	€ 63,893
IT	€ 60,545
Marketing	€ 60,424
Staff – HR	€ 58,408
PR	€ 57,741
Scientific research	€ 56,466
Insurance	€ 55,301
Purchasing, materials management & logistics	€ 51,501
Education	€ 50,352
Health and social services	€ 49,866
Design	€ 48,259
Technical occupations	€ 46,119

IT Industry Salary Structure in Germany

The average Salary difference for professionals in IT Industry based on tasks and professional experience is:

The top 5 Professional title in the IT Industry with highest average salaries are:

Engineering Industry Salary Structure in Germany

The average Salary difference for professionals in Engineering Industry based on tasks and professional experience is:

 The top 5 Professional title in the Engineering Industry with highest average salaries are:

Marketing Industry Salary Structure in Germany

The average Salary difference for professionals in Marketing Industry based on tasks and professional experience is:

The top 5 Professional title in the Marketing Industry with highest average salaries are:

Sales Industry Salary Structure in Germany

The average Salary difference for professionals in Sales Industry based on tasks and professional experience is:

The top 5 Professional title in the Sales Industry with highest average salaries are:

Personnel Industry (HR Staffing) Salary Structure in Germany

The average Salary difference for professionals in Personnel Industry based on tasks and professional experience is:  

The top 5 Professional title in the Personnel Industry with highest average salaries are:         

Consulting Industry Salary Structure in Germany

The average Salary difference for professionals in Consulting Industry based on tasks and professional experience is:  

 The top 5 Professional title in the Consulting Industry with highest average salaries are:       

Finance, Insurance and Banking Industry

The average Salary difference for professionals in Finance, Insurance and Banking Industry based on tasks and professional experience is:  

The top 5 Professional title in the Finance, Insurance and Banking Industry with highest average salaries are:                                                                                                                                                      

Purchasing and Logistics Salary Structure in Germany

The average Salary difference for professionals in purchasing and logistics Industry based on tasks and professional experience is:  

The top 5 Professional title in the purchasing and logistics Industry with highest average salaries at a glance are: