Average Salary in Germany in 2026 by Industry & Region

Hire anywhere—No entity required

If you’re hiring in Germany, salary benchmarks matter. Here’s where the numbers stand in 2026.

The median gross salary in Germany is €53,900 per year in 2026, according to a recent report based on over 1.3 million salary data points (more findings from this report below). That breaks down to roughly €4,490 per month.

We’re using median here because it filters out extremes better than a simple average; it’s the middle point where half earn more and half earn less. In U.S. dollars, that translates to approximately US$63,730 annually at current exchange rates.

Germany consistently ranks as one of the best-paying countries in Europe. As of 2024, it had the sixth-highest average salary in the EU, which was much higher than the average European wage. The country also does better than the OECD average, but the tax wedge tells a different story. Germany has the second-highest total labor costs among OECD countries, with taxes and social contributions taking up 47.9% of gross earnings.

For global employers, the context matters. Germany represents the world’s third-largest economy with a labor force of over 44 million people. Despite economic headwinds in recent years, about 27% of German firms still report labor shortages. The talent is there. The competition for it is real.

Average salary by job type in Germany

Average earnings vary widely depending on the role and capabilities required for the job. Certain positions drive higher salaries due to the technical complexity or market demand for such skills. Others reflect more standardized pay structures across industries.

Below are estimated gross annual salaries for common professional roles in Germany as of 2026:

Software Engineer. €74,100 (US$87,600)
IT Project Manager. €67,100 (US$79,300)
Data Scientist. €73,000 (US$86,300)
HR Specialist. €47,600 (US$56,300)
Financial Analyst. €62,500 (US$73,900)
Mechanical Engineer. €69,600 (US$82,300)
Marketing Manager. €50,000 (US$59,100)
Administrative Assistant. €45,800 (US$54,200)
Customer Support Representative. €36,700 (US$43,400)

These numbers show the typical mid-level salary. Entry-level jobs will pay less than these amounts, but senior jobs that require specialized knowledge can pay a lot more. Where a professional lives also matters when employing German talent. For example, cities like Munich and Frankfurt usually pay higher-than-average salaries.

Average salary by city/region in Germany

Where Germany’s talent resides affects average salary figures. Germany’s major business hubs have their own salary dynamics shaped by industry concentration and living costs.

Munich

Munich consistently ranks as Germany’s highest-paying city. The average salary for tech experts (engineers, developers, etc.), automotive engineers, and business professionals here is between €62,000 and €67,000 a year. Munich also has the highest cost of living, with rent prices that are often twice as high as in smaller German cities.

Frankfurt

Frankfurt’s financial sector drives up salaries. People who work in banking, insurance, and financial services here make 15–20% more than the national average, which means that most people make between €62,000 and €65,000 a year. Housing costs are high, but the extra pay that comes with finance jobs usually makes up for the higher costs.

Berlin

Berlin is one of the top-ranked European cities for attracting tech talent and startups. The average salary here is between €52,000 and €56,000 a year, which is a little less than the national median. The slightly lower cost of living next to Munich or Frankfurt makes these salaries go further.

Stuttgart

Engineering and manufacturing are the main industries in Stuttgart. The region is home to major auto companies and their suppliers, which raises average salaries to €58,000 to €61,000. The cost of living is in the middle of Berlin and Munich, and it’s a particularly valuable hub for companies that want to build engineering teams in Germany.

Key factors that influence salaries in Germany

Not all roles are paid equally. Several variables shape what employers need to offer when hiring in Germany. The data below reflects findings from The Stepstone Group’s 2026 salary report (mentioned in the beginning)

Region and geography. Western Germany commands higher salaries than the East, with Western workers earning a median of €56,250 compared to €48,750 in eastern states (excluding Berlin).
Industry sector. Banking leads at €70,250 median salary, followed by aerospace (€68,000), insurance (€66,500), and pharmaceuticals (€66,250), while hospitality and agriculture fall below €50,000.
Years of experience. Career starters with under one year earn €46,250, those with over six years reach €55,500, and professionals with 25+ years earn a median of €60,000.
Education level. A university degree drives median salary to €68,250 compared to €51,200 for those without academic credentials.
Language proficiency. Bilingual and multilingual professionals, particularly those fluent in German and English, earn measurably more than monolingual peers and face faster salary growth.
Company size. Employees at small firms (up to 50 staff) earn a median of €48,800, while those at large companies (5,000+ employees) earn €63,000.
Managerial responsibility. Staff with direct reports earn a median of €62,000 versus €51,300 for individual contributors.

The East-West salary divide remains one of Germany’s most persistent economic realities. Workers in states like Mecklenburg-Vorpommern can earn €21,000 less annually than their counterparts in Hamburg. This gap has actually widened in recent years rather than narrowed, reflecting structural differences in industry concentration and company headquarters locations.

Salary structure and compensation components

The difference between an employee’s gross salary and how much money ends up in their pocket is huge in Germany. As mentioned above, social contributions take nearly half of gross salary as mandatory health insurance, pension, unemployment insurance, and long-term care contributions. This cost is usually shared by the employee and employer, but there’s no doubting the impact.

After taxes and contributions, a gross salary of €60,000 becomes about €31,000 to €35,000 in take-home pay each year. This gap surprises international employers who aren’t aware of Germany’s labor laws and social security system. However, it pays for full health care, retirement benefits, and unemployment protection that many employees value highly.

It’s common for German contracts to include structured extras on top of the base salary. Many employment contracts include vacation benefits and annual bonuses (often based on performance). In some fields, you can get a 13th-month salary, which is basically an extra month’s pay given out at the end of the year or spread out over the year.

FAQs

When hiring in Germany, certain questions come up repeatedly. Here are the answers that matter most to employers.

What is the minimum salary in Germany?

As of 2026, the legal minimum wage in Germany is €13.90 per hour. At that rate, a full-time job would pay about €2,250 gross per month. With a few exceptions, the minimum wage applies to all industries and areas. Germany plans to raise its minimum wage to €14.60 per hour at the beginning of 2027.

What is a good salary in Germany?

Anything above the national median of €53,900 annually puts you in comfortable territory. For major cities like Munich or Frankfurt, “good” shifts upward to €60,000 to €70,000 due to higher living costs. Context matters, though. A good salary for an entry-level role looks very different from what a senior professional should command.

Are salaries in Germany paid monthly or biweekly?

Employers in Germany pay their employees once a month, usually at the end of the month. In Germany, biweekly pay cycles like those in the United States are not very common. This monthly structure is similar to how most German bills and other financial obligations work.

How do German salaries compare to those in other countries in Europe?

In the European Union, Germany has the sixth-highest average salary. It does better than most countries in Southern and Eastern Europe, but not as well as Switzerland, Luxembourg, and some Scandinavian countries. Germany’s pay is much higher than the EU average, which makes it a good place to attract international talent.

Do software engineers earn more than average in Germany?

Yes, significantly more. The average salary for a software engineer is €74,100 a year, which is more than the national average of €53,900. Because there aren’t many skilled workers in tech and there is a lot of demand for them, tech jobs usually pay 25–40% more than other jobs. Data scientists and IT project managers make more money than most people, but they follow similar patterns.

Recruit German talent with confidence

Hiring in Germany can be less complicated than it sounds. Pebl’s global EOR services handle employment contracts, cross-border payroll, employee benefits administration, and global compliance across over 185 countries, so you can onboard talent without setting up a local entity. We turn months of legal paperwork into days of simple decisions. Interested in learning more? Get in touch.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.