Cost of Living in Germany: Key Insights for 2024

Germany, a country famous for its strong economy and high standard of living, is a popular destination for foreign workers and international students. If you’re looking for a job abroad, you should learn more about the cost of living in Germany. This way, you’ll come prepared, making it easier to focus on your career. To prepare for life abroad, we’ll explain average costs, living expenses, tips for saving money, etc.

Average Cost of Living in Germany

The average cost of living in Germany is around €1000 per month if you live independently. On the other hand, an average net earning is around 3000 euros (gross salary depends on multiple factors, so it’s hard to define its average). But how much you’ll spend varies greatly depending on several factors.

Your average salary will determine your quality of life and how you approach the monthly cost of living in Germany. Make sure to negotiate your salary to align with living expenses. Robin’s job advisers can provide information on minimum wage levels in Germany, which can help estimate your potential income. Regions with expensive cities have higher prices that require better salaries just to keep up with all living expenses.

Rent in Germany in Most Popular Cities

The average rent in Germany depends on several factors. Firstly, cities like Berlin, Munich, Hamburg, and Frankfurt have higher rental costs and price tags for goods and services than smaller towns. Where you live will significantly determine your total expenses, so consider that when looking for a job abroad. South Germany, mainly Munich, is the most expensive region in Germany compared to others. At the same time, Berlin is surprisingly one of the cheaper capital cities in the European Union.

The average monthly cost for a one-bedroom apartment in the city centre of a major German city can range from €750 for an apartment outside of the centre to €1500 in the expensive city centre. However, sharing a flat with others or living in company-provided accommodation can be cheaper. According to Destatis, the average rent price for a one-bedroom apartment in Germany increases by 3.2% yearly. The table below shows the rent in Germany, price and location, for some of the most famous German cities.

Source:Numbeo

Rental prices in Germany can be high, especially in major urban centres, so choosing where to live can make a significant difference. Whether you rent an apartment in the city centre or share a flat with others, the type of housing you choose will significantly impact your monthly rent.

Food Prices in Germany

Food prices in Germany are generally comparable to those of other European countries. A single person can expect to spend around €250 to €400 monthly on groceries, including beer and wine. On the other hand, eating out at restaurants can be more expensive, especially in popular tourist areas. 

• Average meal cost in a mid-range restaurant: €20
• Average fast-food average price: €10 
• Average daily food cost: €7 (bread, vegetables, eggs, meat)
• Average weekly grocery store bill: €50

The good news is that German food prices are very similar throughout the country, thanks to numerous supermarkets offering affordable and minimum-cost items. You can expect a higher price tag in exclusive restaurants, where pricey service is part of their reputation. Below is an example of food prices in Germany (Stuttgart, Berlin, and Munich).

Source: Numbeo

Public Transportation in Germany

Public transport in Germany is well-developed and affordable. A monthly public transport pass (Deutschland-Ticket or D-Ticket) price is €49 (2024), with the price rising to €58 as of January 1, 2025. With this monthly ticket, you can travel an unlimited number of times by all means of local public transportation. The great thing is that D-Ticket is valid across Germany, which is especially useful if you use public transportation in multiple cities because of work. 

If you own a car, you must also factor in car insurance costs, around €300. In addition, the price of petrol may vary greatly depending on the world market. If you find it too expensive to use a car, you can carpool or choose other types of transportation.

Credit: How to Germany

Cost of Utilities in Germany

Utilities such as electricity, gas, and water costs can increase average monthly expenses, especially if you are alone. How much the average German household spends can vary depending on consumption and location, but it’s safe to say it’s €300 on average, including mobile phones and the internet. In Germany, each household must pay monthly contributions to the public broadcasting service (ARD, ZDF, and Deutschlandradio). 

Credit: Cost of living in Germany

Private and Public Health Insurance System

As a worker in Germany, you must have health insurance, be it public or private. Public health insurance is generally more affordable than private health insurance. Also, statutory health insurance is part of the employment package in every company in Germany.  

As a foreign worker, you can use public health insurance according to German law. If you wish to have private health insurance, your salary must be over €69,300 per year as of 2024. Here’s a breakdown of types of health insurance:

Public Health Insurance (Gesetzliche Krankenversicherung – GKV):

• Average cost is approximately 14.6% of gross salary, with employees paying around 7.3% and employers contributing an equal share.
• Insurers may add a surcharge, usually around 1.3%, which is also split between employer and employee.
• For a gross monthly salary of €3,000, the employee’s portion would be roughly €249–€300.

Private Health Insurance (Private Krankenversicherung – PKV):

• Private insurance is available to high-income earners (typically over €66,600 annually), freelancers, and the self-employed.
• Monthly cost varies significantly based on age, health status, and coverage. Therefore, it could range from €200 to €600+ per month.

Should You Choose Public or Private Health Insurance?

According to Germany Visa, public health insurance covers many segments of medical care in Germany. Basic health insurance covers most medical services like prescribed medications, hospital care, dental care, ambulatory assistance, pregnancy, etc. On the other hand, you may get additional hospital care in private institutions if you choose private health insurance.  So which one to choose? Ultimately, the health insurance choice depends on your income. 

Pension Insurance and Other Social Security Deductions

A German pension can significantly improve your retirement years, especially with a good salary. During your career in Germany, you’ll pay pension insurance (Rentenversicherung), around €280, for a gross wage of €3,000. Add to that around €40 for Unemployment Insurance (Arbeitslosenversicherung) for the same salary.

Some employers offer additional pension plans that may come with small employee contributions. Besides that, you may also buy additional private health insurance for benefits not covered by public insurance. Depending on coverage, this can cost around €20–€80 per month.

Lifestyle Expenses in Germany

Your lifestyle choices will affect your monthly expenses. Your life outside work is important, so do your best to enjoy your free time. That said, your life outside of work also offers an opportunity to spare some money. If you’re not careful, things like eating in restaurants, going out, and travelling may quickly empty your pockets.

Tips for Reducing Living Costs in Germany

You can expect to spend up to half of your salary on rent and bills, but ideally, it should be around a third of your monthly earnings. That way, you’ll have enough for other expenses and even to save a bit. Luckily, there are many ways to save money in Germany, such as putting some cash aside at the end of the month. 

The first thing you should do when you get a job abroad is to plan your life according to the goals you set. Here is how to cut monthly costs and save money while working in Germany. Remember a couple of golden rules when you get your first salary:

• When you get your salary, put some money in your savings account and don’t use it unless you really have to.
• Don’t buy expensive things just because you can. Remember why you came to work in Germany and be financially responsible.

Best Housing Solutions for Workers in Germany

Companies often offer their workers accommodations, which is just one way of saving money. This way, you can get a place to stay free or under very affordable conditions. You can save hundreds of euros this way. Remember that the most expensive option is to live alone and cover monthly costs alone. Therefore, lower your utility costs by sharing a flat with others. This can significantly reduce your housing expenses and average monthly living costs in Germany. 

If you combine work with studying, look for student housing solutions where you can share an apartment with several roommates. By sharing expenses, you’ll be able to afford a flat with a better location. Of course, your monthly expenses are much smaller if you own an apartment.

How to Save on Food in Germany

Unless the company prepares free meals for workers, cooking your meals is more affordable than buying them. While it takes time, you can prepare meals for a whole week in advance with good organisation. You can earn even more by buying groceries in larger packages, especially if you have a large refrigerator and freezer.

Before going to the grocery store, compare average prices at different supermarkets and look for discounts and promotions. Germany has many supermarkets with cheaper costs that offer an excellent price-quality ratio (Lidl, Aldi, Netto, Kaufland). It’s also important to make a shopping list before you go to buy groceries. Create a shopping list and stick to it to avoid spending too much.

How to Save on Transportation in Germany

Using local public transport is an affordable way to get around German cities. Besides local transport, consider using a bicycle if your work is close to your home. You’ll not just cut costs, but you’ll often get easier through traffic (and it’s healthy!). If you don’t have a bicycle, the agency can provide you with one (for a deposit).

Carpooling is another great option, as you can share your travelling expenses with colleagues working and living in Germany who are close to you. This is one of the reasons why jobs at Robin often require workers with driving licenses.

Ready to Live and Work in Germany?

Being mindful of your spending habits and following these tips can help you significantly reduce your living cost in Germany and enjoy a comfortable lifestyle. If you’re still looking for a job in Germany, we can help you find an opportunity that matches your skills and is paid enough to cover your average daily expenses.

Start by creating your profile, and our recruiters will reach out to find you the best job offer in Germany.