Average salaries in Germany differ by region, industry, experience, education, and demographic. Understanding these factors—and the law—will give you valuable insights into the German compensation landscape and assist with employee cost calculations. You’ll be able to gauge what a good salary is in Germany so you can find and employ the country’s top talent.
This article will examine the minimum wage in Germany, average salaries in euros, and the country’s average income.
Minimum wage in Germany
According to the German federal government’s most recent ordinance, the minimum wage in Germany is €12.82 per hour as of January 2025. Therefore, the minimum salary is around €2,222 per month (€26,666 annually), assuming 40 working hours per week.
The country has one of the highest minimum wages in Europe, helping keep salaries in Germany fair. Minimum wage laws are usually reviewed once or twice annually—in January or June.
The German minimum wage applies to most employees over 18 years old, but there are some exceptions:
- Certain apprentices and trainees
- Self-employed workers, independent contractors, and freelancers living and working in Germany
- Volunteers
- Individuals who have been unemployed for a year or more (exempt for six months after returning to employment)
Employers must pay all other employees the minimum euros per hour to comply with minimum wage laws. However, competitive employers will offer more during salary negotiations. Consider years of experience, sector demands, inflation, and the cost of living when employing people in Germany. This way, you can find—and keep—top talent in your industry.
What is the average salary in Germany?
The median salary is most useful when calculating average income, as it minimizes the effect of outliers with exceptionally high earnings.
The gross median income in Germany is €51,876 per year, according to statistics from the German Federal Statistical Office. This makes the German average salary per month €4,323. Net salary is significantly lower, around €30,000 per year.
Gross salary refers to the wage figure before income tax and other social contributions, whereas net income is what employees have left over after tax and other deductions.
These monthly salary figures in euros are based on wages across industries, but the sector a person works in influences their expected income. When determining employee salaries, consider role-specific factors rather than the average salary alone.
Factors that influence salaries in Germany
The following factors affect average gross salaries in Germany:
- Industry: Finance, science, and technology jobs often pay more than the average German income. Careers in these sectors are particularly lucrative compared to those in the retail or hospitality industries.
- Experience and seniority: Salaries tend to increase as employees gain more experience.
- Education level: Employees with a degree or vocational training will generally earn significantly higher incomes. However, some German industries, like tech, value experience more. These employers would rather spend their euros on employees who can demonstrate that they do the job well.
- Geographic location: The cost of living varies depending on where an employee lives in Germany. Salaries in Munich, Hamburg, and Frankfurt tend to be higher because high-paying companies base their operations in major cities, and the cost of living is often higher.
- Company size: The larger a company is, the more resources it has to pay higher salaries to employees.
- Contract type (e.g., full-time, part-time, freelance): Part-time workers typically have lower salaries and fewer benefits than their full-time counterparts. Full-time employees enjoy more job security and a set salary, but freelancers and consultants might earn more per hour. However, an independent contractor’s workload may be less reliable, and they don’t enjoy the same benefits.
- Gender: Unfortunately, women tend to earn less than men for doing the same job in Germany, similar to many other countries.
The gender pay gap in Germany
The gender wage gap is significant in Germany despite efforts to reduce the disparity between what women and men earn.
The German Federal Statistical Office places the gender wage gap in Germany at 18%. In other words, on average, women earn 18% less than men.
There are several reasons why such pay disparity still exists in the country:
- Occupational differences: More women work in social and cultural sectors, whereas men are more represented in technical professions. The latter tend to pay more.
- Part-time employment: A higher proportion of women work part-time, partially due to caregiving responsibilities. These job types have fewer benefits, lower gross salary in euros, and fewer career progression opportunities.
- Career interruptions: Women are more likely to take career breaks to care for children or older relatives, which can impact their earning and promotion potential.
- Underrepresentation: Women are underrepresented in senior positions and higher-paying roles in most sectors and businesses.
Germany is trying to remedy the gender pay gap. It enacted the Transparency in Wage Structures Act (Entgelttransparenzgesetz) in 2017. Among various pay equality measures, this Act gives female workers the right to know how much men in similar positions earn and vice versa, motivating employers to consider their pay disparities and close the gender wage gap.
Ending the gender pay gap isn’t just the government’s responsibility. Employers should pay all employees a fair gross salary, regardless of gender.
Average salaries for different occupations in Germany
As previously mentioned, salaries vary significantly by sector. Here’s a broad overview of the median euros workers earn in some of Germany’s biggest industries, according to the most recent statistics from the German Federal Statistical Office:
- Banking: Investment bankers and asset managers earn relatively high gross salaries, averaging €63,250 annually.
- Agriculture: Agriculture, forestry, and fishing are on the lower end of the scale, with an average annual salary of €36,000.
- Medical professionals: Surgeons and physicians in Germany require extensive education. Their vital work commands €94,750 per year on average. Pharmaceutical professionals earn less—but still higher than the national average—at €57,250.
- Aerospace: Occupations in the aerospace sector typically earn more than the German average salary, bringing in around €57,750.
- Transportation: Logistics and transportation are on the lower end of the pay spectrum, with workers earning an average yearly salary of €38,500.
- Science and research: Germany invests heavily in science and related fields. Workers garner an average annual income of €57,000.
Ensuring competitive and ethical compensation with Oyster
Employers need to offer generous salaries to hire and retain top talent in Germany.
With Oyster, you can confidently manage global payroll, ensuring that you provide competitive offers that factor in legal compliance and fair compensation principles. Simplify payroll processes, follow local laws, and make offers that support talent and market alignment—all with the help of Oyster’s Global Payroll and employment solutions.
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About Oyster
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