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WORK IN GERMANY: what to know?

2 years ago

Due to the country's well-developed economy, Germany is the most popular destination for migration in Europe. One of the most recurring reasons why emigrants choose Germany as their next destination is the search for promising new jobs and career opportunities. However, not everyone emigrates because of this, some just want to experience adventure and make money. Regardless of the reasons for the migration, there are several criteria that are important for anyone who wants to take advantage of the benefits that working in Germany can offer. So what is useful to know about this country loved by emigrants and its labor market?

"Erst die Arbeit, dann das Vergnügen!" - a German saying that really means "work first and then have fun" - is a great introduction to German work ethic. Not only working in Germany, but living in this country in general is strict. German work ethic states that employees must always arrive on time, work full time and perform every task, large or small, with high quality. However, a serious approach to a career and a desire to gain a successful work experience in Germany does not mean that you will not be able to enjoy life while working in that country. Because order in their lives is a necessity in any area of life, maintaining a work-life balance is no exception. In fact, Germans like to relax and, according to statistics, they could even be described as the largest recipients of holidays from all over Europe. During the lunch break, the Germans also don’t miss the opportunity to have fun, so don’t be surprised to find table football or table tennis tables in most German offices. Some offices choose to play their work environment by integrating console games or even a mini golf course into it! At the end of the work week, the Germans like to relax with a refreshing glass of beer. Unsurprisingly, this country boasts of creating a high-quality beer that is attracting tourists to the country. People from all over the world come to work in Germany, so you can be sure that when you work in Germany you will find a lot of diversity that will not allow monotony to become a part of your life.

In terms of income, working in Germany really stands out for generous wages. From 2022 month of January the minimum gross wage in Germany is € 9.82 per hour. From 2022 July this figure will increase further to € 10.45 gross hourly earnings. So, from July this year. the minimum monthly wage in Germany will be as high as € 1,755 before tax. After tax, the minimum wage in Germany from 2022 onwards July will be equal to € 1301. This minimum wage also applies to emigrants, international students and overtime.

A good average gross annual salary in Germany ranges from € 64,000 to € 81,000. These salaries differ in Germany due to several criteria. First of all, salary ranges, as in each country, vary depending on the job position. Here's how different work in Germany is paid by analyzing the 10 most popular occupations in the country: (All salaries below are average earnings per month before tax.)

• People working in medicine and social care in Germany earn on average around € 3270 a month.

• The average salary in economics, finance and accounting in Germany is around € 4134 per month.

• The average salary of lawyers in Germany is around € 4530 per month.

• People working in the banking sector in Germany earn on average around € 4512 a month.

• The average salary for electrical and energy engineering professionals in Germany is around € 3867 per month.

• The average salary of an IT specialist in Germany is around € 5259 per month.

• The average monthly salary of a human resources professional in Germany is around € 4167.

• The average salary of builders and real estate professionals in Germany is around € 3907 per month.

• People working in transport, freight transport and logistics in Germany earn on average around € 3121 per month.

• The average salary for marketing and advertising professionals in Germany is around € 3969 per month.

As you can see, your choice of profession really determines what salary you can expect when you go to live and work in Germany. However, this is just one of many criteria that are taken into account when calculating workers’ salaries in this country. Salaries in Germany also vary depending on your work experience. While the average gross annual salary already mentioned in Germany is considered to be really valuable, it may take as long as 10 years or more to reach this level of pay.

According to statistics from 2021, work in Germany, based on employees' work experience, is paid as follows: (All salaries below are average annual gross earnings.)

• Less than 1 year of experience ∼ € 38,932.

• From 1-2 years of experience ∼ € 41,518.

• From 3 to 5 years of experience ∼ € 48,058.

• From 6 to 10 years of experience ∼ € 56,229.

• From 11 to 25 years of experience ∼ € 66,686.

• From 25 years and more experience ∼ € 67 480.

In addition to the period of work experience, your salary in Germany also depends on the size of the company you work for. Large companies (+10,000 employees) in Germany can pay about 29% more than the average annual gross wage in the country, which is around € 56,985. Medium and large enterprises (5,001 to 10,000 employees) exceed the average gross wage in Germany by about 18%. Medium-sized companies (1,000 to 5,000 employees) exceed their average salary by about 13%. Meanwhile, start-ups or smaller companies with up to 250 employees tend to pay significantly less than the national average (23% to 6%). So, don’t forget: the bigger the company, the higher your salary can be.

Another criteria that is taken into account when calculating employees' salaries in Germany is the level of education of the employees. Employees with a master's degree can expect to earn around € 61,906 gross annual salary, while employees with only a bachelor's degree can expect to earn around € 54,210 gross per year. And while the 14% pay gap now seems small, it can certainly have a big impact on your savings, which will become especially relevant at a decent age.

It is also really helpful to know that the region in which you live and work can affect the amount of your salary in Germany. According to statistics, work in Germany is best paid in the south. The two largest cities in southern Germany with the highest salaries are Frankfurt and Stuttgart. You ask yourself, what is the reason for this? These cities are home to the headquarters of many large corporations. Stuttgart, for example, has a number of car, high-tech and consumer goods companies, while Frankfurt is a financial center with its own airport and frequent trade fairs. However, no matter how you want to go to these top-paying big cities, keep in mind that the cost of living in cities like Frankfurt is quite high.

The last criteria still taken into account in the calculation of employees' salaries in Germany is the sex of the employees. According to a study by the German Federal Statistical Office, men earn on average as much as € 600 more per month than women. In other words, in most cases, women receive three-quarters of what men earn.

Before deciding to go to live and work in Germany, you need to know not only the information about wages in that country, the criteria for calculating them, but also about taxes. In total, income taxes and social security contributions in Germany account for about 38% of employees' gross earnings. While for many of you such taxes may seem relatively high, don't despair - in fact, most of the taxes (about 20% of your salary + 20% of your employer's compensation) fall into the following 5 areas that are definitely beneficial to employees:

• Pension fund is a contribution to your future! When you reach the age of 65 and retire, you will receive up to 67% of your gross earnings due to these relatively high taxes. Don't worry, if you move to another country as an emigrant, you will still be entitled to the pension you accrued during your year in Germany.

• Health insurance is also part of employee taxes. In Germany, health insurance is compulsory for every employee, and employees are usually included in the state health insurance plan by their employers.

• The rest of the taxes go to unemployment insurance. This fund allows people working in Germany to register with the German labor exchange in the event of redundancy and to receive a certain share of the salary they received at their last job. What the salary will be and how long it will be paid depends on the age of the employee and how long he has worked for the company. Emigrants are also entitled to this benefit if they have contributed to this fund for at least 12 months in the last 2 years.

• Part of the employee tax is also included in accident and sickness insurance. It comes in handy if you are sick, have had an accident or injury at work. This insurance should not only cover the cost of treatment, but also ensure that you will still be paid during the recovery period or receive a pension if you become disabled.

• In addition, a small part of the tax goes to disability insurance. These contributions cover measures to help people with disabilities participate in the work environment or to provide them with an income when they are no longer able to work.

We think You will agree that the taxes that all people working in Germany have to pay are indeed distributed wisely. The reason for this is Germany's financial literacy skills, which undoubtedly contribute to the country's particularly strong economic strength. Germany is considered an economic power in the EU, which means that its economy is dependent on labor. Due to the pandemic, the number of vacancies in Germany may turn out to be low for some time, but do not be fooled. Employers in this country do not always communicate properly with the government, so it is estimated that there may be twice as many vacancies in Germany as in public statistics.

Working in Germany is by far the most in demand in the following areas:

• IT and engineering: almost every company in any sector needs qualified IT staff. It will be particularly easy for software developers and programmers to get a job in Germany, as their skills are always in high demand. In Germany, the pre-tax salaries of employees in this field amount to € 5259 per month, while in Lithuania the average salary of specialists in this field is only € 3031 per month before taxes.

• Automotive industry: You can expect to earn around € 3605 per month before tax in Germany, while people working in this field in Lithuania earn around € 1715 per month before tax.

• Electrical Engineering: You can expect to earn € 3867 per month in Germany before working in this field, while people working in this field in Lithuania earn an average of around € 1880 per month before tax.

• Civil engineering: In Germany, professionals working in this field earn an average of € 3907 per month before tax, while in Lithuania people working in this field earn an average of € 1866 per month before tax.

• Mechanical engineering: the average salary of these employees in Germany is about € 3747 per month before taxes, and in Lithuania about € 1652 per month before taxes.

• Telecommunications: In Germany, the average salary of employees in this field is about € 4430 per month before taxes, while in Lithuania people working in the field of telecommunications earn about € 1808 per month before taxes. • Medical: The German labor market has one of the highest salaries for professionals in this field. They average about € 3270 per month before taxes, while people working in this field in Lithuania earn about €1558 per month before taxes.

In summary, working in Germany is much better than working in Lithuania not only in terms of tax distribution, but also in terms of salaries. So if you have skills in any of the areas listed above - don’t be afraid to consider working in Germany! The number of workers needed to ensure the country's economic prosperity will only increase over time. It would therefore be useful to get involved in this process as early as possible! But keep in mind that before deciding to emigrate and work abroad, the most important thing is to think carefully and only then make a decision.

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