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Germany is so much more than sausages and beer. The country boasts incredibly low unemployment, a high quality of life, and a wonderful mix of history, culture and nature. It’s no wonder Germany is the destination of choice for many expats.
But if you decide to make a move to Germany, how will you support yourself once you’re there? You’ll have to have a job, and it’s entirely possible that the German minimum wage will be your new salary. Will it be enough to support you? How far can you stretch a minimum wage paycheck in Germany?
Read on to learn everything you need to know about Germany’s minimum wage.
The current minimum wage in Germany is €8.84 per hour.
The official minimum wage in Germany is set by the country’s parliament, and it was last increased this year. However, collective bargaining agreements are common in Germany, and they often set their minimum wages higher than the national minimum. Union minimum wages are enforceable by law in Germany.
Germany’s minimum wage applies across the entire country. There is no variance depending on the region.
Germany’s minimum wage law does not apply to underage people, so anyone under the age of 18 can still be paid less than the minimum wage.
Germany’s minimum wage law doesn’t apply to apprentices or interns. Apprentices can be paid less than minimum wage during their training periods, and interns don’t have to be paid at all. However, unpaid internships are only allowed if the intern is a current student. If he or she has finished school, internships must be paid. Unpaid internships are also limited to three months, after which time the employer must begin paying the intern at least the minimum wage.
Germany’s minimum wage law is extremely new — it was only passed in 2015, when Prime Minister Angela Merkel made a power-sharing deal with the German Social Democratic Party that included the enactment of a national minimum wage. Before it was enacted, collective bargaining agreements were the main way wages were determined in Germany, and even though a minimum legal wage now exists, collective bargaining agreements are still very common. Germany was one of only seven countries in the European Union without a minimum wage when it adopted one.
When the minimum wage was adopted in Germany in 2015, it was set at €8.50 per hour. The law came with a stipulation that the minimum wage would be reviewed every two years, and it was raised for the first time this year to its current rate.
What’s the minimum per month you need to make to qualify for national healthcare or health insurance?
Germany has a universal healthcare system in place, so there’s no minimum amount that people need to make in order to qualify for national healthcare. Public health insurance in Germany costs, on average, 7.5 percent of an individual’s earned income, or 15 percent for those who are self-employed. However, there are a number of programs in place that can bring those costs down, especially for people who are self-employed in artistic fields, or for people who are unemployed or earn very little. Basically, everyone is guaranteed some sort of health coverage in Germany, without barriers depending on how much they earn.
Compared to many other cities in Europe and around the world, Germany’s cost of living is fairly low. However, its minimum wage is also lower than in many other places.
In Berlin or Munich, a one-bedroom flat can cost less than half what it would in London or New York City. Food and transportation are also on the cheaper side in German cities, compared to other major cities around the world. In fact, living expenses for a single person spending a year in Germany don’t even top €10,000 on average, not including rent, making Germany an extremely affordable place to call home.
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Wise also offers borderless multi-currency accounts, which allow you to send, receive and manage money in multiple global currencies all at once. If you live in one country but work in another, you can get local bank details in the US, the UK, the EU or Australia so you can get paid like a local, without paying expensive international fees to send or receive money abroad.
Whether the minimum wage is “good” really depends on the cost of living in any given country. But here’s how Germany’s minimum wage compares to other parts of the world.
|Minimum Wage (in US dollars)
|$10.48 per hour
|$7.93 - $10.68 per hour
|$7.25 per hour
|$9.93 per hour
|$508.88 per week
|No legal minimum wage
|$1,748.85 per month
|No legal minimum wage
|No legal minimum wage
|$1,846.11 per month
Is Oktoberfest still calling your name? If so, Germany may be a great place for you to visit or live in next. Regardless of where you decide to call home, best of luck with your move!
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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