Average Salary in Germany in 2024

In 2024 the average salary in Germany is around €50,250 (StepStone Salary Report).

This article will break down how the average salary in Germany varies by industry, region, company size, and gender so you can get a full picture of earnings in Germany.

Key points

• As of 2024, the average annual gross salary in Germany is €50,250. There are big differences between industries, experience levels, and regions, so make sure to consider these when evaluating salaries (Source: StepStone Salary Report).
• The median annual salary in Germany is €43,750 which is a better reflection of the typical salary as it’s less affected by extreme high or low values (Source: StepStone Salary Report).
• The minimum wage in Germany is €12.41 per hour as of January 2024 and €12.82 per hour in 2025 to ensure fair pay for workers and to adjust for inflation and cost of living (Source: Bundesregierung).
• There are economic differences in regional salary variations, with southern cities like Munich, Stuttgart, and Frankfurt having higher median salaries and lower wages in eastern regions like Saxony-Anhalt (Source: StepStone Salary Report)

Average salary in Germany 2024

As of 2024, the average annual gross salary in Germany is €50,250. This is based on extensive data analysis, including reports from the Federal Statistical Office and salary databases like StepStone, which analyzed 921,973 salary entries from users across Germany. This gives us a reliable picture of the average salary.

However, average salaries can differ greatly between industries. High-paying industries like banking, aerospace, and pharmaceuticals have the highest average annual salaries. Entry-level positions have lower average annual salaries, with an average of €38,250. Experienced professionals, especially those with over 10 years of experience, can earn much more, with an average of €48,000 (source: Salary Explorer).

Regional differences also play a role in salary variations. For example, professionals in Munich, Stuttgart, and Frankfurt have some of the highest median salaries in the country and are often higher than in other regions.

Median salary

The median salary, unlike the average gross monthly salary, gives a better picture of the typical salary. In 2024 the median gross salary in Germany is around €43,750 per year. This is less affected by extreme high or low values so it’s a good indicator of the middle of the salaries.

Knowing the median salary is important for income distribution and financial well-being. It’s a key factor for the average income and the income gaps within a population. Unlike the average salary, which can be affected by extremely high or low incomes, the median is the middle point where half of the population earns more and half earns less. This gives you an idea of the population’s overall financial situation and income gaps.

Minimum wage

The minimum wage law in Germany protects workers and ensures fair labor compensation. As of January 2024, it is €12.41 per hour. This applies to all workers in Germany, including those over 18, part-time and seasonal workers, and university students. However, some groups, like trainees, volunteers, and short-term interns, are exempt from this rule.

As of January 1, 2025, the minimum wage will increase to €12.82 per hour. This is to adjust to inflation and the cost of living. For a full-time employee working 40 hours a week, this means a minimum gross monthly salary of around €2,151, which is around €1,557 after taxes. This way, the minimum wage will still be a living wage for all workers in Germany.

Salary range

Industry, experience, and location have a big impact on the salary variations in Germany. The salary range goes from a minimum of €960 per month to a maximum of €17,000 per month, but actual salaries can be even higher (source: Salary Explorer).

Salaries are mainly determined by an individual’s experience. Entry-level positions have lower salaries, but as employees gain experience, their salaries increase. For example, workers with 2-5 years of experience can earn 32% more than entry-level workers. This shows the importance of experience and career progression in the German job market (source: Salary Explorer).

Salary percentile

To get a better idea of the income distribution in Germany look at the salary percentiles. Here are some percentiles (source: Salary Explorer):

• 25th percentile: 25% of the population earns less than €2,550 per month.
• 50th percentile (median): 50% of the population earns less than €3,770 per month.
• 75th percentile: 25% of the population earns more than €6,010 per month.

This shows the big salary variations in the workforce. At the top end 5% of the population earns €7,680 or more per month which shows the high earning potential for top professionals.

Regional salary variations

In Germany, salary levels are influenced by region. Southern regions and cities like Hamburg have higher median salaries than eastern regions. These regional gaps are caused by various factors like the cost of living, economic activities, and the presence of high-paying industries (source: StepStone Salary Report).

1. Highest-paying cities

Hamburg, Munich, Stuttgart, and Frankfurt are the highest-paying cities in Germany and consistently have higher average salaries than other regions. These cities are economic hubs, home to many multinational companies and industries that require skilled professionals and high salaries.

The high median salaries in these cities are caused by the strong job market and the higher cost of living. Professionals thinking of moving to these cities should weigh the higher salaries against the higher cost of living to make informed financial decisions.

2. Lowest paying regions

On the other hand, regions like Saxony-Anhalt, Thuringia, and Mecklenburg-Vorpommern have some of the lowest salaries in Germany. These regions are mainly in eastern Germany, where economic development is behind that of the western regions.

These lower salaries often reflect the local economic conditions and industries present in these regions. For example, these regions may have fewer high-paying industries like banking and technology, which leads to lower overall wage levels.

Industry salaries

Average salaries in Germany split by industry:

• €63,250 Banking

• €57,750 Aerospace

• €57,250 Pharmaceuticals

• €57,000 Science & Research

• €56,000 Insurance

Some industries in Germany pay more than others. The banking sector, aerospace industry, and pharmaceutical industry are known for their high average gross annual salaries.

For example, banking and finance professionals can earn around €66,228 per year, and aerospace professionals similarly (source: StepStone Salary Report 2024).

In addition to these sectors, law professionals, scientists, and technology experts also earn high salaries. Software developers and senior software engineers, in particular, can earn between €65,500 and €87,620 per year, which shows the high demand for tech skills in the job market.

Company size and salaries

Salary split by company size:

• €53,500 5,001 – or more employees
• €50,000 – 501 to 5,000 employees
• €45,000 – 51 to 500 employees
• €38,500 – 1 to 50 employees

In Germany, company size has a big impact on salaries. Generally, larger companies pay higher average salaries than smaller companies and startups. For example, employees in startups or smaller companies earn an average of €38,500 per year, and those in medium-sized companies earn around €50,000 per year.

Larger companies with more than 500 employees usually pay the highest salaries, with an average of €53,500 per year (source: StepStone Salary Report 2024).

Gender pay gap in Germany

According to the “Global Gender Gap 2024” report by the World Economic Forum, Germany is one of the top nine countries (next to Iceland, Finland, Norway, New Zealand, Sweden, and Nicaragua) that closed at least 80% of their gender gap (Source: World Economic Forum).

In 2023, the unadjusted gender pay gap was 12.40%, which means women earn much less than men on average. Even when you adjust for job type, experience, and working hours, the gender pay gap is 5.50%.

To fix this gap, Germany has implemented several policies and laws. One of them is the “Entgelttransparenzgesetz,” or Pay Transparency Act, which came into effect in July 2017. This law promotes pay transparency by allowing employees to ask for information about the salary structures within their company so they can detect and address wage gaps.

Furthermore, Germany has launched the “Equal Pay Day” campaign to bring attention to the gender pay gap and encourage companies to act on pay equity. The government also supports programs to promote women in leadership positions and STEM fields, which are male-dominated industries.

But critics say the adjusted gender pay gap doesn’t take into account structural inequalities in the labour market, such as the undervaluation of female-dominated professions and the higher rate of part-time work among women. Fixing these gaps requires ongoing work on targeted policies and initiatives to promote gender equality in the workplace.

Gross salary vs. Net income

For financial planning, it’s important to understand the difference between gross and net salary. Gross salary is the total income before any deductions, and net income is the amount received after taxes and social security contributions are subtracted. Understanding the concept of gross and net salary helps employees to manage their finances better. For example an employee with a gross monthly salary of €3,000 might take home around €1,950 after deductions.

The average net annual salary in Germany is around €32,141, which is much lower than the gross salary due to high tax and social contribution rates. These deductions include income tax, health insurance and other mandatory contributions. So when evaluating job offers and financial stability it’s important to consider the net income.

Net salary calculation

Net salary is calculated by subtracting various deductions from the gross salary. These deductions are:

• Income tax
• Social security contributions
• Church tax
• Solidarity surcharge

Health insurance is another big cost, public insurance costs 14.6% of the gross salary plus additional contributions based on income.

In Germany, these deductions take up an average of 35% of the gross salary. For example, a skilled software developer earning €55,000 per year might be taxed at around 42%. Online salary calculators can help employees estimate their net income by inputting their gross salary and other relevant details.

Compensation costs

In Germany compensation costs include non-wage labor costs beyond the gross salary. Employers’ social security contributions cover:

• Health insurance
• Pension insurance
• Unemployment insurance
• Long-term care insurance

These contributions are high because of the comprehensive social security system in Germany which is part of the European Union.

Additional benefits like company cars, meal vouchers and public transportation subsidies are also part of the compensation package. Investment in employee training and professional development, bonus payments and profit-sharing schemes add to the compensation costs.

Living costs and purchasing power

Living costs in Germany can vary greatly depending on location and lifestyle. For a single person monthly costs can be between €1,200 and €3,000, including:

• Rent
• Utilities
• Food
• Transportation

Rent alone can be between €600 and €1,000 for a one-bedroom apartment in the city center.

Utilities (electricity, heating, water) add another €120 to €350 to the monthly costs. Public transportation is efficient and relatively cheap, a monthly ticket is between €60 and €100, recently replaced by the nationwide €49 ticket. Understanding these costs is key for budgeting and evaluating purchasing power in different regions.

Average wage growth

Several economic factors, like inflation and labor market trends, influence wage growth in Germany. In the first quarter of 2024, negotiated wage growth was 4.7%, which is a positive trend after the pandemic. This was mainly driven by wage drift (individual bonuses and overtime payments).

However, wage growth is not uniform across all sectors. One-off payments also played a big role in the overall wage growth. According to the ECB wage tracker, wage pressure will remain high and irregular throughout the year, which means that there will be ongoing adjustments to the economic conditions.

Comparison with other countries

A good way to understand Germany’s economy is to compare the average salary with other countries. Germany is often among the top European countries in terms of average earnings due to its strong economy and high productivity. For example, average salaries in Germany are higher than in neighboring countries like Poland and Spain but lower than in Switzerland and the US.

However, you should consider the cost of living and taxation when making these comparisons. Germany has competitive salaries, but the higher living costs in the big cities can affect purchasing power. The country has a comprehensive social security and health insurance system, so a big part of the gross salary is deducted for these contributions, which affects the net income.

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