WHY KNOWING SALARY RANGES IN GERMANY IS ESSENTIAL

When you’re searching for work in Germany, it’s a good idea to know the salary range (Gehaltsband) for your chosen profession. Your desired salary range is actually one of the very first things a German company will ask you about during an interview.

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SALARY RANGES IN GERMANY

If you’re like me, coming from somewhere like Canada, salary isn’t usually discussed until the time of offer. So it feels pretty strange to be asked about it so directly and so early on in the recruitment process. Some job descriptions in Germany will even request that you include your preferred salary in the cover letter or it may also appear as a field on the job application.

In the past, I’ve purposely avoided adding that information to my job application. Recruiters have since told me that when they see that potential candidates haven’t specified a salary range when it was explicitly requested, they often discard the applications completely. They’ll see you as someone who misses attention to detail, is being disrespectful by not following their instructions, and/or that you’re being duplicitous.

When I managed to get to the next stage of the recruitment process, expected salary expectations would always come up during the first introductory call. Nervously, I’d fumble my way through the conversation saying something like “Whatever market rate is paying for someone with my profile.” This was never accepted as an answer and the recruiter would always press on, asking me to provide a range. I’d usually throw something out there, never knowing if I undersold myself or priced myself too high – and even worse, out of a job.

German companies ask for this information up front, as they want to know if your salary expectations come close to what they’re able to offer. It’s actually better for both parties to find out how close they align at the beginning of the recruitment process. For example, I remember talking with a candidate who wanted way more than we’d budgeted for that position. Finding out high expectations on salary right away allowed us to mutually decide not to continue.

As uncomfortable as it can be, there’s no getting away from it. You need to be ready to talk about salary, speak about it with confidence, and able to justify why you should get what you’re asking for.

Where To Research Salary Ranges In Germany

The best places to research salary ranges for your profession are:

1) Sites to check out pay ranges include, GEHALT.de, Glassdoor, Kununu, gehaltsvergleich.com, Stepstone, and the Federal Employment Agency (Bundesagentur für Arbeit).

2) Industry/union sources include IG Metall, IG BCE, DBV, TVöD, IG BAU, and ver.di.

3) Berliners can check out brand new this salary survey report from REDSOFA that provides an overview of 2024 compensation ranges. Also, check out this average salaries in Germany report from rec hub. Both were published in the first half of 2025.

4) A simple search may land you on other specialized websites not mentioned here. Search for “<profession> salaries <location>” and see what information that yields. Since I work as an Agile Coach, I’d search for “Agile coach salaries Berlin”.

5) If you want to know what Germans earn on average and what are the highest-paid positions, check paylab and ru-geld.de.

6) To figure out what your net salary would be after deductions, use this calculator.

What Affects Where You Land Within A German Salary Range

There are a number of things to think about to determine where you land within a salary range:

1) The company profile – Bigger, established, well-funded, and/or profitable companies usually have more money to throw around in terms of salaries and bonuses. Young startups tend to be cash-strapped, especially before getting their first investment or becoming profitable.

2) The city where you’re applying – Berlin tends to pay less than what you’d make in Munich, Frankfurt, or Hamburg due to a lower cost of living. So be sure to make your research location specific.

3) Your personal profile – Accomplishments, education, training, experience, all factor into where you land on the scale.

As you’re researching salary ranges, take all of the above things into account. What’s more, try to realistically assess where you land on the scale. Talk with others to verify if your proposed range is solid, perhaps a mentor, or other colleagues you’ve worked with in the past.

You can even post in local Facebook groups, like Berlin Boss Babes, as there are many recruiters, hiring managers, and coaches in the group who’d be only too happy to help. (Note, this specific group is for women only.)

In an effort to combat pay disparity between genders, Germany actually passed a law where you can request your company to disclose anonymized salary information for others in a similar position.

Tips When Providing Salary Ranges to German Employers

1) Provide a range and not a specific figure – Don’t provide a specific amount like €50,000. Always go with a range like €45,000 – €55,000.

2) Be strategic about the range you provide – Companies often don’t play fairly and when you provide a salary range, they could lowball you. Building on the above salary range example, they may only offer you €45,000 if you provide a range of €45,000 – €55,000. So keep the low end of your quoted range to be something you’re comfortable with, your middle range what you really want to make, and the high end, more aspirational. This will give you room for negotiation when talking about offers.

3) Don’t tell them how much you make now – If a company asks you what you’re making in your current role, you’re not obligated to share it with them. Instead, keep the conversation focused on the range itself and what you’re looking to make. When negotiating, be prepared to justify your desired salary based on data. You should be very familiar with market rates for the position in general, what comparable companies are paying, and what others with a similar profile as you are making on average.

4) Adjust your expectations – Even if you made more money for that role in a previous job, which is really common for people moving to Germany from abroad, always provide a range that fits local market rates. A comparable salary to what you made in London, San Francisco, or New York salary isn’t likely to be found in Berlin for example. Although the salary may feel lower, permanent positions in Germany come with perks not always found elsewhere, like extensive healthcare coverage, six weeks of vacation, and long notice periods. The cost of living in Berlin​ (although rising) is also still relatively “cheaper’ish” than many other major cities.

Recommended reading: Our complete guide to negotiating salaries in Germany.

FAQ

Here are some commonly asked questions about salary ranges in Germany

What is the minimum wage in Germany in 2025?

The German minimum wage (Mindestlohn) is €12.41 per hour as of January 2024, with increases planned for 2025. This applies to all employees over 18 years old, including temporary workers, interns completing mandatory internships longer than 3 months, and most part-time workers. Some exceptions exist for certain apprenticeships and specific industries.

How do German salaries compare to other European countries?

German salaries are generally competitive within Europe, typically ranking in the top 5-7 countries. However, they’re often lower than Switzerland, Norway, or Luxembourg but higher than most Eastern European countries. The key advantage is Germany’s strong social benefits system, which effectively increases your total compensation package beyond the gross salary

What's the difference between gross salary (Bruttolohn) and net salary (Nettolohn) in Germany?

Your gross salary is your total earnings before deductions, while your net salary is what you actually receive after taxes and social contributions. In Germany, expect to lose approximately 40-50% of your gross salary to taxes and social security contributions, depending on your tax class, marital status, and income level.

Are there mandatory 13th or 14th month payments in Germany?

While not legally required, many German companies offer additional payments like Christmas bonuses (Weihnachtsgeld) or vacation bonuses (Urlaubsgeld), sometimes referred to as 13th or 14th month salaries. These are typically outlined in your employment contract or collective bargaining agreements (Tarifverträge) and can range from partial to full monthly salary amounts.

How often do Germans receive salary increases?

Salary reviews typically occur annually in Germany, though this varies by company and industry. Performance-based increases average 2-5% annually, while inflation adjustments are becoming more common. Many companies also offer promotion-based increases when you change roles or responsibilities. Sadly, it’s easier to change companies to score a salary increase.

What benefits should I factor into my total compensation package?

Beyond your base salary, consider: company pension contributions (Betriebsrente), meal vouchers, transportation allowances, professional development budgets, flexible working arrangements, additional vacation days beyond the legal minimum, company cars, and health insurance supplements. These benefits can add 15-30% to your total compensation value.

Are there regional salary differences beyond the major cities mentioned?

Yes, significant regional variations exist. Former East German states (neue Bundesländer) typically offer 10-20% lower salaries than Western states. Rural areas generally pay less than urban centers. Bavaria, Baden-Württemberg, and Hesse tend to offer the highest salaries, while states like Mecklenburg-Vorpommern and Saxony-Anhalt typically offer lower compensation.

How do startup equity packages work in Germany?

German startups increasingly offer equity compensation, though it’s less common than in the US. Options include virtual shares (Phantom Stocks), actual company shares, or Employee Stock Ownership Plans (ESOP). Equity is typically offered alongside a lower base salary and vests over 3-4 years. Tax implications can be complex, so consider consulting a tax advisor.

What salary should I expect during probation periods?

Your salary during the probation period (Probezeit) should be the same as your regular salary. German law prohibits paying probationary employees less than the agreed salary. However, some performance bonuses or benefits might be prorated or delayed until after the probation period ends.

How do collective bargaining agreements (Tarifverträge) affect my salary?

If your company follows a collective bargaining agreement, your salary will be determined by standardized pay scales based on your experience level, qualifications, and job responsibilities. These agreements often include automatic annual increases and additional benefits. About 50% of German employees are covered by such agreements, particularly in manufacturing, public sector, and larger corporations.

What's the typical salary progression timeline in German companies?

Career progression in Germany tends to be methodical. Junior to mid-level progression typically takes 2-3 years, mid-level to senior takes 3-5 years, and senior to leadership roles can take 5-10 years. Salary increases during promotions often range from 10-25%, though this varies significantly by industry and company size. Career progession also tends to be faster in German startups

How do German companies handle salary negotiations for international candidates?

German companies are generally open to negotiating with international candidates, especially for skilled positions. However, they typically expect data-driven justifications for salary requests. Be prepared to discuss how your international experience adds value, but also demonstrate understanding of local market conditions and cost of living differences.

Are there tax advantages to certain types of compensation in Germany?

Yes, several compensation types offer tax advantages: company bicycles (Dienstfahrrad), meal vouchers up to €8.80 per day, employer-paid health insurance supplements, professional development courses, and company pension contributions. These benefits are often more tax-efficient than equivalent cash payments and can significantly improve your net compensation.

So when you’re interviewing for jobs in Germany, be strategic with your expected salary range to help ensure that you get the very best job offer. 

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Cheryl Howard, Founder @ The Berlin Life

Cheryl Howard, Founder @ The Berlin Life

Hi, I’m Cheryl. My mission is to help you move to Berlin and find work.

A Canadian in Berlin for 10+ years, I have the unique experience of moving to Berlin – not once, but twice. During my time in Berlin, I’ve had five different visas and worked as both a freelancer and a permanent employee for numerous Berlin companies. I even managed to find a new job during the pandemic and again in 2023, during Germany’s recession and massive layoffs in tech. 

My day job has involved work as a hiring manager, overseeing the recruitment of countless people, as well as a team coach helping teams and individuals work better and find happiness in their careers. Through my side projects, I’ve also shared my personal experiences by publishing a series of helpful blog posts, creating a thriving community of job seekers, and hosting events to help people find work in Berlin. In 2021, I decided to put my coaching and recruiting talents to use by creating The Berlin Life, bringing my existing content and community together in one spot.

The combination of my personal and professional experience means I know exactly what it takes to move to Berlin and find work.