Germany is the Europe’s biggest economy and one of the richest countries in Europe. It is wealthy not only in GDP per capita terms but also in terms of average personal income. The country is famous for its affluent middle class, generous welfare system, free healthcare and education, clean environment, public safety and generally fair and even distribution of wealth. Therefore, Germany is also highly regarded for its great quality of life.

Average Gross Salary in Germany

An average gross salary in Germany in 2017 was 3,770 euros a month for full time employees (self-employed, part-time jobbers and people with very low income below the taxable level were not included in these statistics). That is around 45,000 euros a year gross (before income tax and social contributions). The minimum wage in Germany is currently just under 1,500 euros a month which is 18,000 euros a year.

Major differences in income levels still exist between the East and the West. The average salary in the old federal states is about 25% (or 800 euros a month) above the average in the new states. That is, employees in the former East Germany earn on average around 3,000 euros a month (excluding the city state Berlin because Berlin is not considered one of the new federal states). Employees in the southern federal states – Hessen (capital Wiesbaden), Baden-Württemberg (Stuttgart) and Bayern (Munich) – have the highest average wages whereas those in the new states – Mecklenburg-Vorpommern (capital Schwerin), Sachsen-Anhalt (Magdeburg) and Brandenburg (Potsdam) – have the lowest salaries. In fact, employees in the federal state Hessen earn on average 55% more than their counterparts in Mecklenburg-Vorpommern.

Furthermore, German men earn on average nearly 21% more than women. There are also differences in income levels between the regional capitals (and large cities in general) and rural areas but these are less significant than differences between men and women or between the old and new federal states. By far the biggest difference is in Bayern (the federal state of Bavaria) where the average salary drops by 7% when excluding the capital Munich from the state’s average.

Average Salaries in Germany by Profession

Salaries vs Cost of Living in Germany

• A single person on minimum wage will bring home 1,100 euros a month which is 250 euros above the average monthly cost of living in Germany.
• A single person earning the German average salary of 3,770 euros a month makes 2,300 euros netto which is almost three times the average cost of living.
• A single nurse earning the average gross salary for a nurse in Germany of 2,900 euros a month makes at least 1,850 euros netto which is 1,000 euros above the average cost of living for a single person.
• A specialist doctor having the average gross salary in his branch of 7,000 euros a month earns 3,900 euros after tax and that is well over four times the average cost of living in Germany.

These are just a few examples to illustrate what some German salaries are really worth. When doing your own comparisons do not forget that the average cost of living in Germany varies mainly due to differences in rent so that the same salary will buy you significantly less in fancy places like Munich than in less affluent parts of Germany.