Germans Earn More Than Foreign Workers Across Germany

Key takeaways

• In December 2024, the national median gross monthly wage was €4,177 for Germans and €3,204 for foreign nationals. This is a gap of €973, or 23%.
• In West Germany, the median wage is €4,310 for Germans and €3,239 for foreign nationals. In East Germany, it is €3,617 for Germans and €2,963 for foreign nationals.
• The largest percentage gaps are found in high-income western states such as Hamburg (30%) and Bremen (29.6%).
• In eastern Germany, the wage gap is smaller, at around 21%. However, overall wage levels are lower for both Germans and foreign nationals.
• Berlin stands out with the smallest wage gap at 14.2%. The city has a large international workforce in technology, research, and other higher-skilled service sectors.
• Foreign nationals are more concentrated in lower-paid sectors such as logistics, construction, and services. Qualification recognition and language requirements can limit their access to higher-paid roles, particularly for new arrivals.
• The wage difference reflects the structure of the labour market. It depends on how industries are organised and how workers are distributed across occupational levels, not geography alone.

Wage differences between German nationals and foreign nationals are visible across all federal states.

In December 2024, the national median gross monthly wage for full-time employees subject to social insurance contributions was:

• €4,177 for Germans
• €3,204 for foreign nationals

That is a gap of €973 per month, or roughly 23%.

This difference does not automatically mean unequal pay for identical work. Median wages reflect how workers are distributed across industries, occupations, qualification levels, and seniority positions.

Foreign qualifications are not always immediately recognised, and language proficiency can affect access to higher-paid professional or managerial roles. As a result, newly arrived workers often enter through lower-wage segments before advancing.

The median wage gap, therefore, reflects structural positioning within the labour market rather than a single national pattern of pay.

Median Wage Gap Between Germans and Foreigners

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Largest Income Gaps in High-Income States

The widest percentage differences appear in economically strong Western states.

In Hamburg, the gap reaches 30%. Many of the highest-paying roles are concentrated in headquarters functions, finance, media, and specialised technical occupations. These lift the upper end of the wage distribution.

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Foreign nationals, by contrast, are more commonly employed in operational logistics, hospitality, and service roles. These sectors are essential to the economy but offer lower median wages than corporate or financial positions.

A similar structure appears in Bremen (29.6%) and Baden-Württemberg (26%).

Bremen combines port logistics with industrial production. Meanwhile, Baden-Württemberg is driven by export-oriented manufacturing and engineering. In both states, higher wages are often linked to long-established industrial careers, advanced technical certifications, and senior positions within large firms.

Foreign nationals are present in these economies, but they are more concentrated in supplier industries, shift-based production, construction, and service occupations. These areas come with lower median pay levels.

The wage gap widens in regions where high-paying sectors lift the top of the wage scale, while foreign workers remain more concentrated in lower-paid roles.

A Different Structure in the East

In eastern Germany, the percentage gap is smaller. However, overall wage levels are lower for both groups.

For example:

• Sachsen: €3,469 (Germans) vs €2,733 (Foreigners) → 21%
• Mecklenburg-Vorpommern: €3,359 vs €2,642 → 21.4%

The difference narrows slightly compared to many Western states. But this occurs within a wage structure that is lower across the board.

The broader regional figures underline this pattern:

• West Germany: Germans: €4,310 | Foreigners: €3,239
• East Germany: Germans: €3,617 | Foreigners: €2,963

The East–West divide affects both groups. Median wages are lower in eastern states regardless of nationality. This reflects structural factors: fewer corporate headquarters, a smaller financial sector, and less concentration of high-paying service industries.

Meanwhile, there is one notable exception. Berlin stands apart:

• Germans: €4,304
• Foreigners: €3,693
• Wage Gap: 14.2%

This is the smallest difference nationwide.

Berlin has a large international workforce. Technology firms, research institutions, startups, and creative industries employ a relatively high share of foreign professionals in higher-skilled roles. That shifts the wage distribution upward and compresses the median gap.

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The wage difference between Germans and foreign nationals exists in every federal state. It is closely linked to structural factors within regional labour markets.

First, the concentration of high-paying sectors matters. The wage gap is largest in high-income western economies and smaller in eastern regions with lower overall wage structures.

Second, the distribution of workers across occupational levels also matters. The organisation of industries, such as who occupies senior, technical, or operational roles, shapes both pay and opportunity.