Are you a developer thinking about moving to Germany? Or are you a German developer curious about how your salary compares to others in your profession? Well, the good news is that we’ve done the research for you. After perusing through multiple sources, including Glassdoor, StepStone, and the Federal Statistical Office of Germany, we’ve compiled a comprehensive breakdown of the average salary in Germany.

Germany is renowned for its thriving tech industry, which attracts professionals from all over the world. Understanding the average salary landscape can help you gauge your earning potential and make informed decisions about your career path. We have delved into multiple data points to present you with a comprehensive breakdown of salary trends, allowing you to navigate the German job market confidently.

Please keep in mind that what we explore are just averages and salaries and expenses may vary. The figures we bring up might not represent the story of a programmer friend who strolls to the office in Kreuzberg, but it’s a very good reference to how most people make a living and what it takes to live in Germany.

Overall average salary in Germany in 2024

First things first, let’s take a look at the overall average salary in Germany. According to data from the Federal Statistical Office of Germany, the average annual gross salary in 2020 stood at €47,700, equivalent to a monthly income of €3,975, before taxes. By 2022, the average gross monthly income (that must be a long compound word in German) had climbed to €4,105, meaning that, last year, the annual average salary in Germany was roughly €49,260 before taxes. After taxes (42%), the average salary in Germany in 2022 stood at around €28,570 per annum and €2,380 per month. 

For 2023, the average gross monthly salary has risen further to €4,323, resulting in a total gross yearly average of €51,876 — these estimates stand for 2024, too. After taxes, the net salary for 2023 comes to approximately €3,109.01 per month or €37,308.10 per year. These increases throughout the last couple of years are particularly notable as they reflect adjustments for inflation, which saw real earnings decrease by 3.1% between 2022 and 2023. While this may not seem like a massive amount, it’s essential to remember that these figures represent averages. Actual salaries can vary significantly depending on factors like profession, experience level, and the industry in which you work.

As a developer, for example, you can expect to earn around €65,500 per year (before taxes), which is a bit higher than the overall average. That equates to approximately €5,400 per month before tax or €3,800 monthly after deductions. However, your salary may be lower if you’re working in a different field or just starting out in your career.

It’s also important to note that the cost of living in Germany can be pretty steep, particularly in cities like Berlin. While salaries are generally higher to compensate for this, it’s still important to budget carefully and make sure that you can afford the lifestyle you want.

Overall, while the average salary in Germany may not be the highest in the world, it’s still a solid starting point for most people. With hard work, dedication, and a bit of luck, there are plenty of opportunities to grow and succeed in your career in Germany and beyond.

Breakdown by Profession

Now, let’s dig a little deeper. As a developer, you’re probably wondering how your salary compares to others in your field. Based on Glassdoor data, the average salary for software developers in Germany is around €65,500 per year. That’s approximately €5,458 a month before taxes. This value significantly rises as you gain experience: the average salary for a Senior Software Engineer climbs to around €87,620 per year, before taxes. However, it should be noted that developers have the potential to significantly surpass this salary range based on factors such as the company they work for, their skill set, and their level of experience. Some of the highest reported salaries for software developers in Germany come from tech companies based in the United States, where senior developers have been known to receive a base salary of €180,000 along with bonuses and equity, resulting in a total compensation of €480,000.

As anticipated, software developer positions are among the most highly compensated. Conversely, other professions have average salaries that can be as low as €32,000 per year (according to data from 2023) before taxes, while the minimum wage is set at €25,812 per year before deductions.

Minimum wage

In Germany, implementing a minimum wage law ensures that workers receive a baseline level of financial security. This legislation holds significant importance in promoting a fair and just work environment.

It’s worth highlighting that many individuals in Germany can lead comfortable lives while earning the minimum wage, particularly if they do not have substantial savings or investment goals. This rings particularly true in smaller towns, where the cost of living is comparatively lower. Remarkably, a single person working full-time at minimum wage can earn around €1,690 per month, which surpasses the average monthly cost of living, estimated at €960 without rent.

As of January 1st, 2024, the minimum wage in Germany stands at €2,054 per month, based on a 40-hour work week (equivalent to €12,41 per hour). This amounts to approximately €24,648 per year. While this minimum wage provides a solid foundation, it’s important to remember that the opportunities for growth and increased earning potential are vast, especially within the field of software development.

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What’s a good salary in Germany in 2024?

Now on to the most crucial question: What’s a good salary in Germany? This depends on various factors such as where you live and your lifestyle. Generally, earning between €70,000 and €80,000 annually is seen as comfortable. This range is especially relevant in cities like Munich, where living costs are higher.

Recent data shows that many people are content with their earnings. For example, about 52% of international skilled workers surveyed were satisfied with their salaries, which typically fall within this range.

Looking at the numbers, the average salary has been increasing over the years. It was around €51,009 in 2022, and more recent studies suggest that a good salary now is likely between €71,000 and €75,000. This increase reflects both economic factors and rising living costs.

Different industries also offer different salary expectations. Fields like finance and manufacturing are at the higher end, with median salaries around €65,000. Overall, what qualifies as a good salary in Germany can vary, but it's generally influenced by your location, industry, and economic trends.

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German taxes

Unfortunately, taxes can claim a substantial portion of your hard-earned money. Let’s take a closer look at an illustrative example: Imagine you earn €55,000 per year as a skilled software developer. You can expect to be taxed approximately 42% of your income based on the prevailing tax rates. This means that a significant portion, roughly €23,100, will be allocated to taxes each year.

As a result, your take-home pay, the amount you receive after taxes, will amount to approximately €3,166 per month. While this figure represents a decrease in your gross salary, it is crucial to consider that it still provides a solid foundation for your financial well-being.

To make the most of your salary in Germany, it's essential that you grasp the tax implications. Get a handle on how much you'll owe by using dependable tax calculators or by consulting with a tax professional. By being proactive, you’ll be able to budget more effectively, make smarter financial choices, and possibly find ways to reduce your tax burden. Knowing the ins and outs of the German tax system, including any deductions or allowances you might qualify for, can significantly improve your take-home pay.

Remember that tax rates and regulations can change, so it's crucial to stay informed with the latest updates from reliable sources for precise financial planning. And, despite the tax burden, Germany remains a prime location for software developers, and it offers plenty of opportunities for career advancement. You can use an online calculator to estimate your net income, which is what you take home after taxes and social contributions are deducted.

Living expenses: Navigating the cost of living in Germany

Now, let's explore the living expenses in Germany, which play a crucial role in shaping your financial landscape. Germany is known for its high living standards, but it's important to remember that this also means higher living costs.

Housing costs in Germany can differ widely based on where you live. For example, rent for a studio apartment in Berlin typically falls between €900 and €1,264 per month, although actual prices can vary. Keep in mind that other living expenses like food, transportation, and utilities also tend to be relatively high.

The cost of living in Germany varies greatly depending on the region, household size, and lifestyle choices. Here, we'll focus on the basic standard costs that individuals can expect. Keep in mind that families and larger households may encounter higher expenses since certain costs scale with the number of people.

Living in Germany, you can expect your monthly expenses to range from €1,200 to €3,000 — including rent. If you're looking to save, you might consider a shared apartment outside the city center. On the higher end, you could afford a private apartment right in the heart of the city — for Duolingo enthusiasts, that's the "geschäftiges Herz."

Besides housing, another major cost is health insurance and social security contributions, which are compulsory for regular employees. These are automatically deducted from your salary..

Source: Numbeo

Average salary of other European countries

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Summary

Germany offers competitive salaries, especially for those in IT, such as developers, who typically earn well above the national average. Even the average salary for software developers here is promising, but it's important to recognise how experience, industry, and location can significantly affect one's earning potential.

If you're a developer in Germany and your salary is below what's typical for your experience and role, it might be time to polish your resume. Check out WeAreDevelopers, a platform that connects tech professionals with top companies across Europe. They offer plenty of job opportunities that could help you get your earnings up to industry standard.