The average salary in Germany is €52,300, is it a livable salary in Germany? Also note that averages can be easily skewed. For example, if one person earns €1 million and another earns €50,000, the average of these two would be €520,000, which does not accurately represent reality.
A more accurate measure would be the median salary in Germany, which is €45,800. This means that 50% of people earn this amount or less.
But is this median salary enough? If not, what is a livable salary in Germany? Let’s talk about that.
Salaries in Germany
What Defines a Livable Salary?
A livable salary is highly subjective and means different things to different people. Does a livable salary require having savings at the end of the month? Does owning a car define it? Or does a livable salary mean something entirely different?
Since Germany is a social state, if you have permanent residency, you won’t be left homeless if you lose your job or have a health crisis, unlike in the U.S. This video isn’t about whether Germany’s system is better or worse than others, but as a social state, there are certain safeguards in place to protect you. These include Arbeitslosengeld (unemployment benefits), Krankengeld (sick pay), Wohngeld (housing assistance), Hartz IV, and more.
As long as your residency status is clear, you won’t face existential financial problems in Germany. Now that we’ve covered that, let’s dive into salaries in Germany.
Understanding Pre-Tax Salaries and Deductions
Whenever salary figures are mentioned, they refer to pre-tax annual salaries.
- The median pre-tax annual salary in Germany is €45,800.
- From that amount, you pay:
- Income tax
- Church tax (if registered)
- Social contributions (health insurance, pension, long-term care, etc.)
Related Guide: Learn 80% about Taxes in Germany in 13 minutes
Progressive Tax System
Germany has a progressive income tax system, meaning you don’t pay the same tax rate on your entire income.
- The first €12,084 (as of 2025) is tax-free.
- After that, tax rates increase progressively, with the maximum being 45%.
- The 45% rate only applies to income above €277,825.
- Most people do not pay an effective tax rate of 45%.
For example, someone earning €45,800 per year would have an effective income tax rate of ~20%. Only individuals earning €800,000+ per year pay an effective 45% tax rate.
Social Contributions (Approx. 20%)
In addition to income tax, social contributions—such as health insurance, pension, and unemployment insurance—are deducted from your salary, amounting to about 20% of your gross income.
The total deductions (income tax + social contributions) vary based on marital status, children, and other factors.
Here’s how it breaks down for two scenarios:
| Profile | Annual Salary (€45,800) | Deductions (%) | Net Salary (€) |
|---|---|---|---|
| Single, no children | €45,800 | 34.6% | €2,493/month |
| Family of 4 (1 provider) | €45,800 | 34.01% | *€3,068/month |
*Families receive €550 per month in child benefits (225€/child), plus potential housing support.
Related Guide: Do this if you get fired in Germany! (Job Loss in Germany)
What is a Livable Salary in Germany?
Honestly, there’s no single answer to this question—it’s highly subjective. However, we can define certain parameters to help answer it.
Location Matters
The cost of living varies by city, with rent being the biggest factor.
The three most expensive cities in Germany are:
- Frankfurt: €17.38/m²
- Berlin: €17.94/m²
- Munich: €21.01/m²
A 45m² apartment costs:
- Munich: ~€945
- Berlin: ~€793.80
- Frankfurt: ~€782.10
🔗 Official Rent Calculator: Germany’s Rent Map
Larger cities generally offer higher salaries but also come with higher costs of living, often balancing out the net effect.
Household / Family Situation
As mentioned earlier, taxes and contributions depend on marital status and children.
Singles benefit from shared accommodations (Wohngemeinschaft or WG), which significantly reduces rent costs. These usually include utilities (electricity, water, internet, etc.).
💡 Example: In 2015, I lived in a small Black Forest city and paid €220/month, including all utilities. In 2018-2019, I paid €320/month for a room in a 2-room apartment.
For families, the cost of living increases due to minimum space requirements:
- 2 adults + 2 children need at least 30-42m² (but realistically a 3-room apartment).
- This significantly raises rental costs.
Profession & Experience Level
While profession and experience don’t directly define a livable salary, they determine earning potential.
💰 Top 3 Highest-Paying Professions in Germany:
- Doctors: €98,750
- Banking & Finance: €59,500
- Consulting: €58,260
💰 Lowest-Paying Professions:
- Healthcare & Social Work: €41,750
- Retail: €37,750
- Gastronomy: €37,250
🎓 Education also impacts salaries:
- Without a degree (Gastronomy): €37,000
- With a degree (Gastronomy): €42,250
Some professions start with low salaries but offer higher long-term growth, while others pay well from the start.
Defining “Livable Salary” – The Most Important Factor
This should ideally be discussed at the beginning, but I placed it here for a reason. A livable salary is highly personal and changes over time.
💡 Example: In 2017, while writing my thesis, I earned €430/month.
- Expenses:
- Rent: €220
- Health Insurance: €90
- Bus Ticket: €45
- Gym: €20
- Left for groceries & everything else: €55
I barely survived, but I made it work. Now, I couldn’t imagine living on that salary.
What’s “livable” for a student differs from a working professional with a family.
From experience, a single person can survive on €800/month (rent, health insurance, groceries, transport). This drops in smaller cities.
🚨 But our goal isn’t just to survive—it’s to thrive, thats why it is essential to learn about the 7 Things Keeping you POOR in Germany
Disclaimer: None of the content in this article is meant to be considered as legal, tax or investment advice, as I am not a financial expert or a lawyer and am only sharing my experience in Germany. The information is based on my own research and is only accurate at the time of posting this article but may not be accurate at the time you are reading it. Please check with multiple sources and make your own opinion based on that.