How do salaries in Germany compare to the rest of Europe?

For anyone thinking about moving to Europe for work and weighing their options, Germany’s not a bad bet – salaries here are, on average, on the higher side.

But that’s not to say that workers in the Bundesrepublik earn the most in Europe. 

Here’s a look at the average income in Germany and how it compares.

Compared to other European Union (EU) countries, German salaries are quite a bit higher on average.

According to Eurostat data, full-time workers in Germany earn an average of €50,998 annually (as of the latest available data for the year 2023). That corresponds to a monthly salary of about €4,250.

That's a good €13,000 more than the average salary across the EU, which was approximately €37,863 – or €3,155 monthly.

Which European countries have higher salaries than Germany?

Ranked among the other EU countries, Germany has the 6th highest salaries.

It’s outdone by Luxembourg (€81,064), Denmark (€67,604), Ireland (€58,679), Belgium (€57,989), and Austria (€54,508).

(The Netherlands also has higher salaries than Germany on average, but it was left out of Eurostat's last ranking due to missing data.)

Looking at non-EU European countries, Germany is also outdone by Switzerland, and Norway, according to OECD data.

OECD calculates different salary totals to Eurostat, but countries are ranked in roughly the same order as Eurostat when Germany is compared to elsewhere in Europe. 

Salaries in Germany do trend higher than those in the UK, according to OECD data, which puts Germany's salary at around €65,700 compared to the UK's €51,000 when the figures from 2023 are converted to euros at the current exchange rate.

Which European countries have lower salaries than Germany?

Accordingly, full-time workers in every other European country earn less than those in Germany on average.

Workers in Finland aren’t far behind, earning €48,391 on average annually, or about €4,033 monthly.

Sweden has an average annual salary of €44,619, or €3,718 monthly.

READ ALSO: Record number of foreigners quit Sweden to move to Germany

And in France, which has a lower average retirement age than Germany, the average salary for full time workers is €42,662, or €3,155 monthly.

Italy and Spain – which are Europe’s next largest economies in terms of GDP (after Germany and France) – have significantly lower salaries on average. 

In Italy, the average annual salary is €32,749 and in Spain it’s €32,587, both of which come to just over €2,700 monthly.

The starkest salary difference between Germany and its neighbours is seen in comparison to Poland, where the average annual salary in 2023 was just over €18,000, or about €1,500 monthly.

How well can you live on an average salary in Germany?

Average salary figures give some insight into where workers tend to earn more or less, but what really matters for most people is what you can afford on that salary.

According to a recent analysis by Focus magazine, a gross yearly salary of €35,704 is enough to afford a comfortable life in Germany – with a comfortable life here meaning affording a single apartment and the average expenses in terms of private consumption.

But in Germany cost-of-living expenses vary immensely from region to region, so while €35,000 may easily cover a comfortable life in smaller cities like Bielefeld and Kassel, you’ll have a harder time making ends meet in the bigger cities at that income level.

The same analysis suggests around €45,000 is needed for a comparable quality of life in Berlin, Hamburg, Frankfurt, Cologne and Düsseldorf, and approximately €53,800 to live at that level in Munich.

READ ALSO:

• How much do you need to earn to live comfortably in Germany?
• Munich vs Berlin - What's considered a good salary for foreign workers?

It’s also worth noting that in Germany your net income (Nettolohn) will be significantly lower than your gross salary (Bruttolohn).

According to this tax calculator for Berlin residents, if you are earning €50,000 you’ll pay 36 percent in taxes – to be left with €31,976.

Paying more than a third of your income in taxes may come as a shock to newcomers to Germany, especially to those coming from countries with lower income tax rates such as the US. But for the price of that tax you have your health care, pension, and other social benefits mostly taken care of – a deal that many German residents come to appreciate.

READ ALSO: Five ways working in Germany is better than employment in the US