The largest economy in Europe, Germany offers many job opportunities and a guaranteed minimum wage for every worker. In addition, the average salary after tax in Germany is higher than in most of the EU. No surprise then that many expats are looking closely into how to earn money in Germany. If you are one of them, read on to know more about the German salary system and what average income in Germany one may expect.
Minimum wage
Top 5 EU countries by the minimum wage per month
Mini and midi-jobs
Mandatory payments
Jobs and average wages in Germany
Minimum wage
Most EU countries have a national minimum wage, with the exception of Austria, Denmark, Finland, Italy, and Sweden. In Germany the minimum wage per hour was introduced in 2015 and has increased several times since then. Under the German salary regulations, it is applicable to all categories of the labour force including international students and foreigners. This is a major advantage for those expats who aim to find a German employer and be able to financially support their families back home.
As of January 2024, the gross minimum wage per hour in Germany is €12.41, which translates into €2,085 a month under full-time employment. When adjusted for purchasing power standard, the amount is €1,883, the highest in the EU. In 2022 (the latest data available) 52.6% of median salaries in Germany was represented by minimum wages.
Top 5 EU countries by the minimum wage per month
| Country | Jan 2024, € | Y-o-y change 2023/2024, % |
|---|---|---|
| Netherlands | 2,183 | 6.9 |
| Ireland | 2,146 | 12.4 |
| Germany | 2,049 | 3.4 |
| Belgium | 1,994 | 2.0 |
| France | 1,767 | 3.4 |
To ensure that workers receive their average wage, Germany also implements a strict control system which was enhanced in 2023 with the introduction of the Whistleblower Act. Among others, the law protects employees’ rights in Germany for salary and benefits. Nevertheless, some categories of workers are exempt from the minimum wage requirement, including:
- Interns, trainees, and apprentices
- Long-term unemployed who might have different wage arrangements for the first 6 months of their employment
- Workers in specific industries and members of trade unions where collective labour agreements might apply
- Freelancers and self-employed individuals
- Individuals under the age of 18.
Mini and midi-jobs
If you are searching for ways of how to earn more money in Germany, for example, if your family back home needs financial help, there is an option of taking up a mini-job (it may also be an addition to your main employment). A mini-job can be of two types:
- With an income limit, which is set at €6,456 a year. This means that the average wage in Germany for a mini-job is €538 per month as of 2024. The earnings may vary between months, but the annual limit must not be exceeded.
- As short-term employment where you work for less than 3 months or 70 working days a year. In this case the size of income is not important for the German salary system. If your average income in Germany is between €538.01 and €2,000 per month, this is considered to be a ‘midi-job’. While ‘mini-jobbers’ do not pay social security contributions, those with a midi-job do, but at a lower rate than full-time employees.
Mandatory payments
To calculate your average salary in Germany after tax (and assess how much money you can afford to set aside for your needs back in your home country), some mandatory payments must be taken into account. In Germany, a salary is subject to the following contributions:
- Pension insurance: 9.3%
- Nursing care insurance: starts from 0.7%, depends on the number of children
- Health insurance: varies depending on the provider (you can learn more from our comprehensive guide here)
- Unemployment insurance: 1.3%
In addition to the above, there is income tax which is calculated depending on the income size. For those who definitely know how to earn money in Germany so that their income tax burden exceeds €18,130 there is also the so-called solidarity surcharge which currently stands at 5.5% of the income tax amount.
Jobs and average wages in Germany
The number of employed people in Germany has been rising for the last two years and is now nearly 46 million. The gross median salary in Germany is €2,109 per month, or €25,308 per year. At the same time, average income in Germany is €3,830 per month or €45,900 per year.
The profile of the industries with the highest-paying jobs in Germany is not very different from other European countries:
- Medical care, healthcare: general practitioners, specialist doctors, surgeons, pharmacists
- Finance, business: investment managers, consultants, sales managers
- Engineering, ICT: IT professionals, engineers, software architects, cyber security specialists.
- Others: seafarers, pilots, tax consultants, lawyers, judges.
If yours is one of these professions, the question of how to earn money in Germany should not be a problem as you might expect to have a higher-than-average salary in Germany after tax. But do not worry if your vocation is different. With a guaranteed minimum wage per hour and an option to make extra money through an additional mini-job, most expats in Germany can afford a decent quality of life and send money to their families back home. And those who choose Profee, an EU-licensed online money transfer provider, enjoy the most competitive foreign exchange rates on the market, benefit from the Profee’s referral programme, and take advantage of countless special offers. Try Profee now to see for yourself!
