Your Guide to Minimum Wage and Average Wage in Germany (2022-2023) (2023)

FAQs

What is the minimum wage and average salaries in Germany 2022? ›

So, the median gross salary in Germany in 2022 was 43,842 euros as opposed to the above mentioned average of 53,118 euros. The minimum wage in Germany is currently 2,080 euros a month when working 40 hours a week (i.e., 12 euros an hour as of October 1st, 2022) which is ca 24,960 euros a year.

Wages in Germany is expected to reach 4121.00 EUR/Month by the end of 2023, according to Trading Economics global macro models and analysts expectations.

Therefore, in the cover letter, include a sentence such as: “My salary expectations are 59,000 euros (gross annual salary). An alternative could be: “I currently receive a gross annual salary of around 50,000 euros and am seeking a 10 percent increase.

It was last increased to 12 euros per hour pre-tax in October 2022. Due to inflation, in December 2022 this wage was worth as much as 9.80 euros were worth in January 2015. A €12 wage implies a gross nominal monthly salary of €2,080 for a full-time employee, meaning someone working forty hours per week.

The minimum wage in Germany for 2023 is €10.45 per hour, which is an increase from the previous year. The minimum wage is reviewed and adjusted every two years by an independent commission.

According to recent wage negotiations, German workers can expect an average wage increase of about 2.5% in 2023. This is slightly more than the average wage increase of 2.3% in 2022.

The average cost of living in Germany in 2023

As a basic estimate, you can expect your total costs to be between €1200 – €3000 per month as an individual living in Germany. At the cheaper end of this range, you would likely be living in a flatshare outside of the city centre.

In 2023, people who are earning in Germany will be able to make more without having to pay tax. The basic tax-free allowance (Grundfreibetrag) will rise to 10.908 euros for the tax year of 2023. Anyone who earns less than this will not pay any income tax. For married couples filing jointly the limit is 20.694 euros.

You can try to skirt the question with a broad answer, such as, “My salary expectations are in line with my experience and qualifications.” Or, “If this is the right job for me, I'm sure we can come to an agreement on salary.” This will show that you're willing to negotiate. Offer a range.

How much should I ask for salary in Germany? ›

Asking for a raise in Germany

The average yearly salary increase is around three percent, depending on market pay and the company budget. When changing jobs or companies, you can expect a salary increase of roughly seven to 15 percent.

In Germany, it is customary to negotiate the salary before accepting a job offer. It is because Germans value fairness and want everyone involved in the process to be happy with their compensation.

Minimum wages Minimum wages

Note: If the statutory instruments listed above prescribe a gross minimum wage that is lower than the general statutory minimum wage of 12 euros per hour, the latter is to be applied as the lowest earnings limit from 1 October 2022.

Minimum wage was only introduced in Germany in January 2015. It applies to all workers aged over 18 and is typically reviewed every two years. As of October 1, 2022, the minimum wage is 12 euros per hour, which equates to a monthly salary of around 2.100 euros for someone working full time.

Employees earn 22.65 euros per hour

Employees in Germany earned an average of € 22.65 per hour in April 2022.

Due to the enactment of Senate Bill (SB) 3, the California minimum wage increased to $15.50 per hour, effective January 1, 2023, for all employers. As a result, a number of regional center vendors may be eligible for a rate adjustment in order to pay employees the new minimum wage.

As of 2021, the average annual wage of Germany was 43,722 euros per year, a growth of over 6,000 Euros when compared with 2000.

Income tax rate adjusted

As of 2023, the top tax rate of 42 percent will be applied to annual incomes of 62,810 euros (2022: 58,597 euros). The basic tax-free allowance is being increased from 10,347 euros (2022) to 10,908 euros (2023). Only the income earned above this amount must be taxed.

Overview. On 1 January 2023, the government of Germany introduced several changes to its immigration laws. These changes include: The German language requirements for the spouses of third-country nationals who have national visas or residence permits for employment purposes have been lowered.

What are the new tax rules in Germany 2023? ›

1. Grundfreibetrag (basic tax-free allowance) rises to 10,908 euros. The Grundfreibetrag, meaning the maximum amount of your income for which no tax is due, will increase from 10,347 euros to 10,908 euros from the first of January 2023. This means that you will be able to earn 561 euros more tax-free in 2023.

In general, wages in the United States tend to be higher than those in Europe, particularly for skilled and high-paying jobs. Part of the reason for this is that the cost of living in the U.S. is usually higher than in Europe.

All told, how high is the cost of living in Germany? According to Destatis, it adds up to €2,507 a month, with 37% of this going towards housing and energy costs and 15% on food, alcohol, and tobacco (as of September 2022). If you calculate this on an annual basis, the average cost of living in Germany is €30,084.

While the cost of living in Germany is slightly above the EU average, it is still cheaper to live there than in France, the Netherlands, or even Italy! When considering the cost of living in Germany vs. the U.S., you'll find that the cost of living in Germany is nearly 19% lower.

In general, the average monthly expenses in Germany can add up to €1,698 for a single person or €3,561 for a family of 4. However, these averages can vary depending on where you live, as rental prices are higher in cities popular among expats. For instance, the average rent in Germany is €800 per month.

Groceries in Germany

Germans generally spend 15% of their income on food, beverages, and tobacco. On average, a single-person household spends €200 per month on groceries; a couple will spend around €365, while a family of four spends around €520.

The average cost of living in Germany ($1442) is 35% less expensive than in the United States ($2213). Germany ranked 30th vs 5th for the United States in the list of the most expensive countries in the world.

Current retirement ages include two types: early and standard. For men, early retirement ages vary from 59 years in Lithuania to 63.7 years in Germany, according to the OECD report. For women, it ranges from 58 years in Lithuania to 63.7 years in Germany.

If you have worked and paid contributions in Germany for more than 60 months, you will receive a German pension after reaching the official German pensionable age. In addition to the periods of contributory employment, many other periods are considered, including: Child-rearing (until three years of age)

What should I put for desired salary per hour? ›

On a Job Application

Not all applications will ask for your desired salary, so if they don't ask, there's no need to give one. And if they do ask, keep things simple by saying something like “salary is negotiable” or “salary may be discussed during the interview process.”

The first thing you should do when answering “why should we hire you?” is to highlight any skills and professional experience that are relevant to the position you're applying for. To make your answer all the more valid, make sure to always back up everything you say with examples, experiences, and achievements.

Germans are usually willing to make a mutually beneficial deal, but not before they've undertaken exhaustive research, presented a meticulous case, and satisfied their own demands for conceptual consistency.

Germans are detail- oriented and want to understand every innuendo before coming to an agreement. Germans have an aversion to divergent opinions, but will negotiate and debate an issue fervently. Avoid confrontational behaviour or high-pressure tactics. It can be counterproductive.

In its most recent figures from December 2021, the Institute for German Economy (IW) found that a single person earning €3,700 a month after taxes qualifies as rich, as that puts them in the top ten percent of earners in the country.

In fact, some recruiters are even surprised when you don't negotiate your salary. While it's not a mandatory part of the process — and almost no company will insist on giving you more money — negotiating is a good idea. After all, you can't get more money if you don't ask for it.

Should You Always Negotiate Salary? It's normal to ask for higher pay or more benefits before accepting a job offer. Most professionals agree that you should always negotiate salary when starting a new job. This is likely the easiest and most crucial time to talk about money.

On average, to cover your living expenses in Germany you will need around 934 euros per month (around $906 US dollars) or 11,208 euros per year (around $10,876 US dollars). The prices for food, accommodation, bills, clothes and entertainment are basically in line with the EU average.

Reading note for Panel B: A single person in Germany with an annual disposable income between USD 23 000 and USD 30 000 is considered to be part of the lower middle-income group; a person with a disposable income between USD 46 000 and USD 61 000 is part of the upper middle-income group.

How much does Mcdonald's pay in Germany? ›

In Germany, healthcare is funded by statutory contributions, which therefore entitles German citizens to free healthcare (Gesetzliche Krankenversicherung). In addition to this, you can also take out private health insurance (Private Krankenversicherung) to replace or top-up the cover that's offered by the state.

With a mini-job as a "short-term employment" ("Kurzfristigen Beschäftigung"), you work less than three months (for a 5-hour week) or 70 working days (if you work less than five days per week) per year.

What Is The Average Wage In Germany? According to Statista, in 2021, the average gross annual salary in Germany was 47.700 euros a year, or 3.975 euros a month. The numbers above are for all of Germany.

Are US taxes higher than in Europe? As for who pays more in taxes, it depends on a particular country. The US has higher rates compared to Eastern European countries (Poland, Bulgaria, Romania, Hungary), but lower rates in contrast with Western European states (France, Germany, Denmark, and the UK).

The OECD average tax wedge in 2021 was 34.6% (2020, 34.6%). In 2021, Germany had the 2nd highest tax wedge among the 38 OECD member countries, occupying the same position in 2020.

The rate of income tax in Germany ranges from 0% to 45%. The German income tax is a progressive tax, which means that the average tax rate (i.e., the ratio of tax and taxable income) increases monotonically with increasing taxable income.

According to Statista, in 2021, the average gross annual salary in Germany was 47.700 euros a year, or 3.975 euros a month. The numbers above are for all of Germany. However, the average gross salary will depend greatly on your location, professional experience, education, size of the company, and gender.

Salary in Germany

Data provided by the Official Statistical Office of Germany, Destatis, show that in 2022, the monthly gross average salary for a full-time employee was around €4,100 – an annual gross salary of €49,200.

Minimum wage and median income

The median household income in Germany is 42,192€ per year. In Berlin, it's 43,572€ per year. This is only for households with working people. The median income per person is much lower: 2,109€ per month.

What is the minimum wage system in Germany? ›

Minimum wage was only introduced in Germany in January 2015. It applies to all workers aged over 18 and is typically reviewed every two years. As of October 1, 2022, the minimum wage is 12 euros per hour, which equates to a monthly salary of around 2.100 euros for someone working full time.

The average cost of living in Germany in 2023

As a basic estimate, you can expect your total costs to be between €1200 – €3000 per month as an individual living in Germany. At the cheaper end of this range, you would likely be living in a flatshare outside of the city centre.

Employees earn 22.65 euros per hour

Employees in Germany earned an average of € 22.65 per hour in April 2022.

Doctors are the highest-paid group in Germany

That is according to the annual salary report conducted by the recruitment platform Stepstone, which considered wage data from 561.761 jobs from January 2021 to November 2022. With an annual median salary of 93.800 euros per year, doctors topped the recent ranking.

What is the average cost of rent in Germany? Average rent costs in Germany range from €300 to €800 per calendar month for a room in shared accommodation and from €500 to €1,346 for a one-bedroom flat.

Reading note for Panel B: A single person in Germany with an annual disposable income between USD 23 000 and USD 30 000 is considered to be part of the lower middle-income group; a person with a disposable income between USD 46 000 and USD 61 000 is part of the upper middle-income group.