Negotiating Your Salary in Germany
When seeking employment in Germany, it is advisable to conduct some research to determine the appropriate salary for your skills and position. In many countries, it is not customary to engage in salary negotiations, as employers typically dictate the offered pay.
In Germany, however, salary negotiations are common, and it is expected that you have a clear understanding of the value of your skills and experience. Requesting an amount that is significantly too low or too high can leave a negative impression on the recruiter.
We have compiled some tips to assist you in conducting your research.
Endgeldatlas
The Entgeldatlas is the largest database of German wages, providing insights into the median wages for specific positions in various cities. It's essential to note that wages in Germany can vary significantly depending on the city in which you reside. Generally, living in a larger city tends to be more expensive than living in the countryside, resulting in slightly higher wages in urban areas.
Taxes
One aspect that may surprise foreigners is the extent of taxes and social security contributions in Germany. There is a substantial difference between your gross wage (Brutto) and your net wage (Netto). When negotiating your salary, always state the gross wage you aim to receive. The German tax system comprises five different tax classes, and your net wage is also influenced by your tax class. For example, if you belong to tax group 1 (non-married) and earn €60,000 per year, you will receive only €37,209.78 after taxes. Here is a detailed breakdown:
Gross Wage: €60,000.00
Taxes: €10,333.00
Pension insurance: €5,580.00
Unemployment insurance: €780.00
Health insurance: €4,847.85
Care insurance: €1,249.37
Net Wage (Yearly): €37,209.78
Net Wage (Monthly): €3,100.75
You can also calculate your net income after taxes using this calculator.
Housing Costs
Housing costs in Germany have been steadily rising, with some individuals in major cities allocating nearly 50% of their income to rent. It's crucial to research rent prices in your desired area, as costs can vary significantly between more and less popular cities. To gauge the rental expenses, we recommend looking at the "warm rent" or "warmmiete" in German. Various platforms, such as Mr. Lodge (which is on the expensive side) and immoscout (offering average prices), provide up-to-date rental price information. Keep in mind that more affordable apartments tend to be in high demand, making securing one challenging.
Other Expenses
Other living expenses, such as food, can be highly individual based on your spending habits. Here is an example for a single individual residing in Berlin with moderate to low spending:
Rent (excluding utilities): €1,279.29
Utilities (heat, water, internet): €281.17
Restaurants: €244.64
Food at Home: €241.62
Public Transport and Taxi: €49.99
Leisure and Sport Memberships: €33.33
Clothing and Shoes: €32.85
Other Goods and Services: €87.54
Total Monthly Expenditures: €2,258.71
For a more detailed breakdown of your cost of living based on your spending habits, you can use this calculator.
Christine is a co-founder of Jetztpat. She was raised in the so-called Schwabenländle but fell in love with travelling to random places very early in life. After living in Japan and Taiwan for several years, she finally went back home to stay in the German beer capital (where she survives by drinking wine). If she is not watching her favorite Japanese Netflix show aggretsuko, you can find her Googling answers to the real questions in life.