Average gross and net salary in Germany as of 2023 in EUR, USD and GBP at the current exchange rate

§ Average salary in Germany

Average salary rate according to the Federal Office of Statistics

In table 1 below, you will find the current average salary in Germany published by the German Federal Statistics Office. The table shows the gross salary before the deduction of taxes and charges for a full-time job. The basis for the calculations is a salary for 1 month of work totalling 4'100.00 euros. This average salary is calculated for the so-called secondary sector of the German economy, which mainly includes manufacturing, construction, and services. The presented average salary amount does not include one-off payments.

Table 1: Average gross salary in Germany as of 2021
in euros, USD and GBP

The average monthly gross salary/ wages rate in Germany for a full-time job in the secondary sector of economy is 4'100.00 € (According to the German Federal Statistics Office).

To calculate the net salary, i.e. the amount of the salary actually paid to the employee (net), after withholding taxes and social charges, we apply the following calculation method. According to the Federal Office of Statistics the net salary in Germany for 2021 at full-time work is a share of 59% to 67% of gross salary, depending on whether the person has a family, children, whether two spouses work, or only one does. Thus, the share of 65% can be taken as the ratio of the average share of net salary to gross salary. Applying this amount, table 2 below shows the average net salary rate in Germany.

Table 2: Average net salary rate in Germany as of 2021
in euros, US dollars and pounds sterling

Key to tables 1 and 2:

• Annual salary - a monthly salary multiplied by 12;
• Weekly salary - a monthly salary divided by 4;
• Hourly earnings - a monthly salary divided by 160.

Average salary rate according to the German Pension Fund

Other data giving an idea of the average salary rate in Germany are the data by the German Pension Fund. To calculate various indicators related to the pensions accounting, the Pension Fund uses the average gross salary rate of all persons insured in the German Pension Fund. This indicator of the average gross salary rate is based on the data from the Statistics Office and is approved by the Bundesrat, the Federal Council of Germany. As of 2021, the average annual salary/ wages rate before taxes and social charges amounted to 38'901.00 euros. This salary is calculated regardless of the economy sector and time of employment in the workplace. To calculate the net salary (after taxes and charges) based on the data of the Pension Fund, we use the percentage ratio average indicator of net salary to gross salary in Germany making 65%, for details see above on the page.

The average annual gross salary rate in Germany among all the insured in the German Pension Fund is 38'901.00 € (According to the German Pension Fund).

Table 3: Average salary in Germany as of 2021,
in euros, US dollars and pounds sterling (by the data of the Pension Fund)

Key to table 3:

• Monthly salary - an annual salary/wage divided by 12;
• Weekly salary - an annual salary/wage divided by 12 and then by 4;
• Hourly earnings - an annual salary/wage divided by 12 and then by 160.

§ Average gross salary rate in Germany per month (before taxes and social charges) in euros, US dollars and pounds sterling

Table 4 below shows the average gross wages/ salary rate in Germany by year for a month of full - time work over the past 10 years. These figures are based on the information from the German Federal Office of Statistics; for more information on the statistics provided, see the page above, refer to the article Average gross salary rate in Germany.

Table 4: Average gross monthly salary rate in Germany, by year, in euros, US dollars and pounds sterling

In chart 1 below, based on the data from table 4, you can see the change in the average monthly wage/salary rate before withholding taxes and charges (before tax, or gross) in Germany by year.

Chart 1. Change in average gross salary rate in Germany by year

§ Average net salary in Germany per month (net, clear, after taxes and social charges) in euros, US dollars and pounds sterling

Table 5 below provides the data on the average net wages/ salaries in Germany by year for a month of full-time work, for the last 10 years by year: 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012. These figures are based on the information from the German Federal Office of Statistics; for more information on the statistics provided, see the page above, refer to the article Average gross salary rate in Germany. To calculate the net salary (after taxes and charges), we use the percentage ratio average indicator of net salary to gross salary in Germany making 65%, for details see above on the page.

Table 5: Average net monthly salary rate in Germany, by year, in euros, US dollars and pounds sterling

In chart 2 below, based on the data from table 5, you can see the change in the average monthly wage/ salary rate after withholding taxes and charges (after tax or net) in Germany by year.

Chart 2. Change in average net salary rate in Germany by year

§ Average labour costs in Germany

In addition to the average salary rate, the German Federal Office of Statistics reports on the average cost of 1 working hour or labour force for an enterprise. Besides salaries of the employee, enterprises in Germany pay social charges to the responsible agencies. In 2021, this figure makes 37.30 euros. For more information on what amount of social charges an employee and an employer pay from salaries in Germany, see an individual page on our website.

The average cost of 1 working hour or labour force for an enterprise in Germany makes 37.30 € (According to the German Federal Office of Statistics).

Table 6: Average cost of 1 working hour or labour force for an enterprise in Germany as of 2021, in euros, US dollars and pounds sterling

Key to table 6:

• Annual cost - the hourly cost multiplied by 160, and another 12;
• Monthly cost - the hourly cost multiplied by 160;
• Weekly cost - the hourly cost multiplied by 40.

To find out the average gross salary and labour cost for European countries go to the corresponding page of our website.

Footnotes:

* The EUR exchange rate in the tables is taken as of 27 november 2023 and amounts to 1.10 USD or 0.87 GBP at the European Central Bank exchange rate. The EUR, USD and GBR exchange rates in Germany

§ Comments and questions from the Site visitors:

Visitors’ comments:

• Questions from the Site visitors (suggest your answer):

• Calculated net salary is too low

  I'm curious how did you calculate the net salary? The numbers don't make sense unless you for some reason deducted VAT purchase tax as a part of salary taxes which it is not and will only confuse and misinform people

  Comment on the question

  Asks Bolo

  
  

  Answers to the question:

  +

  1

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  Gross/net salary calculation
  Hello, Bolo!
  Of course, there is no VAT in the calculations.
  How the gross/net salary in Germany is calculated can be found at the following links:
  - Payroll taxes in Germany: gross/net calculator
  - Examples of salary calculation in Germany: gross/net calculator

  Support Team