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What’s Considered a Good Salary for Foreign Workers?: Munich vs Berlin

What’s Considered a Good Salary for Foreign Workers?: Munich vs Berlin

Germany’s major cities, including Munich and Berlin, offer some of the best-paying jobs but also come with high living costs. The discussion around wages for foreign workers in these cities can be complex, as salaries differ based on location, industry, and experience.

Foreign Workers in Munich and Berlin

b, Germany’s capital, is the top destination for foreign residents, with non-Germans making up 20.3 percent of its population. Munich, the capital of Bavaria, also attracts a significant number of foreign nationals, especially those interested in joining major firms like Allianz and BMW or exploring startup opportunities.

munich-vs-berlin

Average Salaries in Munich and Berlin

The national average monthly salary in Germany for full-time employees was €4,479 in 2023, equating to around €53,748 annually. However, salaries vary significantly depending on the city. Munich is known for having some of the highest salaries in the country. In 2024, the average annual salary in Munich is estimated at €58,000, according to Expatrio. In comparison, Berlin’s average salary is around €50,000—approximately 14 percent lower than Munich’s.

While these are average figures, actual salaries may vary based on profession and experience. Generally, earning €50,000 or more is considered a good salary by German standards.

Taxes and Net Income

In Germany, your gross salary (Bruttolohn) is subject to tax rates ranging from 30 to 45 percent, depending on factors such as income, marital status, and location. For example, someone earning €50,000 in Berlin would pay around 36 percent in taxes, leaving them with a net salary (Nettolohn) of €31,976. Although the tax rate may seem high compared to other countries, it includes contributions to health insurance, pension, and unemployment benefits, which lower some of the living expenses.

Cost of Living in Munich and Berlin

The cost of living in Germany varies significantly based on location. Munich has long been considered one of Germany’s most expensive cities. However, a recent survey by Mercer found that Berlin has now become Germany’s most expensive city due to rising rent prices. Comparison portal LivingCost.org estimates that Berlin is eight percent less expensive than Munich, with the average after-tax salary covering 1.7 months of living expenses in Berlin versus 1.8 months in Munich.

High-Paying vs. Low-Paying Jobs

According to Stepstone’s 2024 salary report, medical professionals in Germany earn the highest salaries, with doctors averaging €95,000 annually. Other high-paying jobs include marketing executives (€88,000) and lawyers (€75,000). IT roles, such as project managers and software developers, also offer salaries above the national average. Conversely, lower-paying jobs include call centre operators (€31,000), waiters (€33,000), and warehouse workers (€34,000). Germany’s minimum wage for 2024 is €12.41 per hour, which equates to approximately €26,000 annually.

In conclusion, while Munich offers higher salaries, Berlin remains a desirable destination for foreign workers, with slightly lower living costs. Understanding these financial dynamics can help foreign workers make informed decisions about where to live and work in Germany.

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