Working in Germany: an Average Salary for Foreigners

It’s time to stop dreaming about moving to Germany to work and actually achieve it.

If you are ready to take a big step in your career, you’ve come to the right place.

We understand that moving to a new country for work can be both exciting and daunting, and one of the essential factors to consider is the average salary you can expect.

In this article, we aim to provide you with valuable insights into the average salaries for foreigners working in various industries in Germany, along with supporting you in your journey to building a successful career in this vibrant nation.

Let’s delve into the details and embark on this exciting venture together!

The German Job Market for Foreigners

Germany is a fantastic destination for foreigners looking to work abroad. With its strong economy, diverse job opportunities, and excellent work-life balance, it’s no wonder many people worldwide are drawn to work in Germany.

The German job market offers an array of exciting possibilities for foreign workers. From engineering and technology to healthcare and finance, numerous industries often welcome international talent with open arms.

Companies in Germany value the unique perspectives and skills that foreign employees bring to the table, making it a cosmopolitan work environment.

One of the reasons why Germany is so appealing to foreign workers is its favourable work environment. 

Germans take pride in their well-structured work-life balance, ensuring that employees have time to enjoy life outside of work. 

This means more leisure time to explore the beautiful cities and stunning landscapes and immerse in Germany’s rich culture.

Moreover, the country’s commitment to employee rights and overall German labour market laws ensure fair treatment and protection in the workplace, giving foreign workers a sense of security and peace of mind.

On top of that, Germany’s status as an economic powerhouse contributes to its attractiveness. The country boasts a robust economy, providing a stable foundation for career growth and professional development.

With a strong emphasis on innovation and cutting-edge research, Germany offers excellent opportunities for individuals seeking to advance their careers in forward-thinking industries.

Overall, working in Germany as a foreigner can be an enriching and rewarding experience. 

The German job market welcomes talent from all over the world, and with its enticing work-life balance, stable economy, and exciting job prospects, it’s a place where dreams can turn into reality!

So, if you’re considering working abroad, Germany might be the perfect destination for your professional journey!

Entering Germany for Work as an EU Citizen

According to the German Federal Foreign Office, EU citizens can enter Germany for work-related reasons without applying for a visa.

Furthermore, individuals who are citizens of the European Union are not required to apply for a residence permit upon their arrival in Germany.

Nonetheless, they are still required to register just like everyone else so that the authorities know they reside in the country.

“Since the entry into force of the Freedom of Movement Act/EU on January 1, 2005, EU citizens are no longer required to apply for a residence permit after entering Germany. However, they need to register, like everyone else, with their local resident’s registration office,” the statement of the Federal Foreign Office reads.

Factors Affecting Salaries for Foreigners in Germany

Understanding these elements is essential for making informed decisions when seeking employment in Germany because they can impact foreign workers’ salaries.

One significant factor that affects salaries is the cost of living difference between Germany and the worker’s home country. 

Germany is known for its high standard of living, particularly in major cities like Berlin, Munich, and Frankfurt.

The cost of housing, transportation, and daily expenses can be considerably higher than what foreign workers may be accustomed to in their home countries.

As a result, employers often adjust salaries to ensure that employees can maintain a comfortable lifestyle and cover their expenses adequately.

Language proficiency is another vital aspect that can impact salary expectations for foreign workers in Germany.

While English is widely spoken, especially in the business world, having a solid command of the German language can be a significant advantage.

Many job opportunities, especially in sectors catering to local clients or customers, may require fluency in German.

Workers with a higher level of language proficiency are often more marketable and can command higher salaries due to their ability to communicate effectively in both professional and social settings.

Educational and professional qualifications are also essential factors that influence salary levels for foreign workers.

Germany highly values skilled and well-educated professionals, particularly in specialised fields such as engineering, technology, and medicine.

Individuals with advanced degrees and relevant work experience are more likely to secure higher-paying positions.

Employers recognise the expertise and knowledge that such candidates bring to the table and are willing to offer competitive compensation packages to attract top talent.

Understanding the Average Salary in Germany

Understanding the average salary in Germany is essential for foreign workers considering employment opportunities. Let’s take a closer look at some statistics and data to gain insight into salary trends for foreign employees.

Data provided by the Official Statistical Office of Germany, Destatis, show that in 2022, a full-time employee’s average monthly gross salary was around €4,100 for an annual gross salary of €49,200.

While this figure may vary depending on the industry and job role, it gives prospective workers a general idea of what to expect.

It is important to remember that factors like qualifications, experience, and the particular area in which the job is located affect this average salary.

Comparing foreigners’ average salaries with those of German citizens and other expatriates can provide valuable context.

On average, German citizens tend to earn slightly higher salaries than foreign workers due to their familiarity with the language and the local business culture.

However, foreign employees can still earn competitive salaries, especially if they possess specialised skills or experience in high demand in the German job market.

Regional variations in salaries are a significant consideration for foreign workers.

Cities like Munich and Frankfurt, known for their thriving economies and high living standards, typically offer higher salaries to compensate for the increased cost of living. 

On the other hand, lower living costs in smaller towns or less developed regions might make up for lower salaries.

It’s essential for foreign workers to research and consider regional variations to make informed decisions about potential job opportunities.

The Minimum Wage in Germany

As of October 1, 2022, the minimum wage in Germany is €12 per hour. We’re also expecting an increase in the following year.

You can easily earn a minimum gross salary of €2,080 per month by working a full-time 40-hour week! After-tax, the minimum German salary equals €1,511 per month.

Employment Benefits and Perks

Health Care

One of the most significant advantages is the excellent healthcare system in Germany. Like German citizens, foreign employees have access to top-quality medical care and private health insurance coverage.

This means that medical expenses are generally covered, providing peace of mind and ensuring that employees can focus on their work without worrying about healthcare costs.

Vacation & Working Hours

Another attractive benefit for foreign workers in Germany is the generous vacation policy.

In Germany, employees are entitled to at least 20 paid vacation days annually, often increasing with years of service or specific industry agreements.

This ample vacation time allows foreign workers to explore the country and return to their home countries, fostering a healthy work-life balance and personal rejuvenation.

Generally, like in other EU countries, working hours in Germany must not exceed eight hours per day. In some instances, the working hours can be extended to ten per day, but the weekly hours should not exceed 48.

Maternity Leave

Parental leave is yet another important perk offered to foreign workers.

German labour laws provide extensive parental leave options, enabling employees to take time off work to care for their newborn or adopted children.

This benefit is especially beneficial for foreign workers who may not have such generous parental leave policies in their home countries. It supports family well-being and strengthens the bond between employees and their families.

In addition to these core benefits, foreign workers may also enjoy other perks such as flexible working hours and schedules, company-sponsored professional development opportunities, and bonuses based on performance.

Many German companies also offer public transportation subsidies or company cars, easing the commute and further enhancing the employee experience.

Cost of Living and Budgeting in Germany

As a foreign worker in Germany, understanding the cost of living and budgeting is vital to managing finances effectively and ensuring a comfortable lifestyle. Germany is known for its high standard of living, and various factors contribute to the overall cost of living in the country.

Housing expenses are a significant component of the cost of living in Germany. Rental prices can vary widely, depending on the city or region.

Major cities like Berlin, Munich, and Hamburg generally have higher rental costs, while smaller towns or rural areas may offer more affordable options. Foreign workers should carefully consider their housing needs and budget accordingly. But if you find work through Robin, you will get an accommodation which is less expensive

Another essential factor is food and groceries. Germany offers a diverse culinary scene, and while eating out can be reasonably priced, purchasing groceries and cooking at home can help save money. On top of that, certain cities may have higher food costs than others, so budgeting for meals is crucial to maintaining a balanced lifestyle.

Transportation expenses also impact the cost of living in Germany. The country boasts a well-developed and efficient public transportation system, making it convenient for foreign nationals to get around. But, owning a car and the associated costs like fuel, health insurance, and maintenance can add to expenses.

Healthcare is another factor to consider. While Germany’s healthcare system is of high quality, it is essential for foreign workers to have adequate health insurance coverage. 

Health insurance premiums can vary depending on the type of coverage and the individual’s circumstances.

Leisure activities and entertainment can also contribute to Germany’s overall cost of living. 

Engaging in cultural events, exploring attractions, and socialising with friends can be enriching experiences, but budgeting for such activities is necessary to balance enjoyment and financial responsibility.

Final Thoughts

Working in Germany presents a remarkable opportunity for foreign workers to embrace a thriving professional experience and immerse themselves in a rich cultural tapestry.

With competitive average salaries and a robust job market, Germany beckons individuals from all walks of life to embark on a journey of growth and success.

If you’re ready to take the leap into this exciting adventure, look no further than Robin, the recruitment agency that stands by your side.

Through Robin, you can discover job opportunities with accommodation completely free of charge!

Our mission is to support and guide you every step of the way, ensuring a seamless transition into your new career in Germany.