Key takeaways
- The average gross salary in Germany is 4,100€ per month as of 2021.
- The minimum wage in Germany is 12.41€ per hour as of 2024.
- 0.1% of taxpayers earn more than 1 million euros annually.
- Germany’s top 1% earn more than 250,000 € gross per annum as of 2023.
- The top 15% in Germany earn more than 70,000€ gross per annum.
- A family of four needs 81,000 € per annum (as of 2024) before taxes to live comfortably in Germany
- A salary between 65,000 € and 80,000 € gross per annum is considered good in Germany as of 2024.
- The income threshold for risk of poverty is 15,765 € gross per annum (single) as of 2023.
Table of Contents
What is the income distribution in Germany?
Germany has a big income gap. On the one hand, 11% of taxpayers earn above 70,000€ per annum, while 11.9% earn below 5000€ per annum.
The table shows the income distribution in Germany as of 2023.
| Total income in euros | Nr. of Taxpayers* | Percentage of Taxpayers |
|---|---|---|
| 0 to 5,000 | 5,042,968 | 11,9 |
| 5,000 to 10,000 | 2,480,620 | 5,8 |
| 10,000 to 15,000 | 3,223,330 | 7,6 |
| 15,000 to 20,000 | 3,619,794 | 8,5 |
| 20,000 to 25,000 | 3,348,250 | 7,9 |
| 25,000 to 30,000 | 3,286,773 | 7,7 |
| 30,000 to 35,000 | 3,027,466 | 7,1 |
| 35,000 to 40,000 | 2,721,753 | 6,4 |
| 40,000 to 45,000 | 2,304,685 | 5,4 |
| 45,000 to 50,000 | 1,911,839 | 4,5 |
| 50,000 to 60,000 | 2,924,626 | 6,9 |
| 60,000 to 70,000 | 2,058,385 | 4,8 |
| 70,000 to 125,000 | 4,674,326 | 11,0 |
| 125,000 to 250,000 | 1,465,908 | 3,4 |
| 250,000 to 500,000 | 300,702 | 0,7 |
| 500,000 to 1,000,000 | 73,424 | 0,2 |
| 1,000,000 or more | 29,345 | 0,1 |
| In total | 42,494,194 | 100 |
Source: Destatis
What is the average salary in Germany?
The average gross salary in Germany is 4,100€ per month as of 2021. [1] It’s increasing consistently over time.
On average, men earn more than women in Germany. Men’s average salary is 4,275€, and women’s average salary is 3,699€ as of 2021. So, men earn 15.5% more than women in Germany.
The income disparity is also among German citizens and expats in Germany. The median salary of a German is 3,945€ per month, and that of an expat is 3,034€. [2]
How much do the top 1% in Germany earn?
Germany’s top 1% earn more than 250,000 € gross per annum. If you dig deeper, you’ll find that 0.7% of taxpayers earn between 250k and 500k. 0.2% earn between 500k and 1 million euros.
Only 0.1% or 29,345 taxpayers earn more than 1 million euros annually.
If you earn more than 277.8k per annum, you fall under Germany’s highest tax slab of 45%. You can learn about the expenses you can deduct to save taxes in Germany here.
How much do the top 15% in Germany earn?
The top 15% in Germany earn more than 70,000€ gross per annum. Earning more not only gives you more purchasing power but also opens doors for better healthcare in Germany.
If you earn more than 69,300€ (as of 2024) gross per annum, you are eligible to get private health insurance in Germany. Private health insurance offers the best medical coverage in Germany.
How much should you earn to live comfortably in Germany?
On average, a family of four needs 4600€ per month to live comfortably in Germany. A single person needs around 1700€ per month. [2]
This means you must earn at least 55,000 € per annum (family) or 20,000€ per annum (single) after tax to live comfortably in Germany. This converts to 81,000 € (family) and 26,000 € (single) gross annually.
What is the minimum wage in Germany?
As of January 1st, 2024, the minimum wage in Germany is 12.41€ per hour. This is around 2,159 € per month or 25,908€ per annum for a work contract of 40 hours per week. [3]
The minimum wage ensures you earn enough to access all the basic needs in Germany. As of 2024, the tax-free allowance in Germany is 11,604 €.
Thus, your net income will be 20,454€ per annum if you earn the minimum wage in Germany.
What salary is considered good income in Germany?
A salary between 65,000 € and 80,000 € gross per annum is considered good in Germany as of 2024.
If you are single, you can live with ease anywhere in Germany.
A family of four with a family income in this range can also live with ease. However, it’ll be difficult for them to save money.
So, if you are planning to move to Germany, your package should be within this range or above.
What is considered low income in Germany?
Anyone earning less than 15,765 € gross per annum (single) is at risk of poverty in Germany as of 2023. [4]
