Wage

Wages (Lohn) are the pay an employee receives for their work. A distinction is made between gross pay (before deductions) and net pay (what lands in your account).

Salary overview Germany 2025:

• Median gross: approx. €3,700/month (half earn more, half earn less)
• Average gross: approx. €4,300/month (skewed by top earners)
• Minimum wage: €13.90/hour (2026) = approx. €2,410 gross/month
• Gender pay gap: women earn on average 16% less than men

Wages vs. salary:

• Wages (Lohn): traditionally hourly (workers, trades)
• Salary (Gehalt): fixed monthly amount (white-collar employees)
• Legally, there's been no difference since 2020 – both are called "Arbeitsentgelt" (remuneration)

Gross to net at €3,500 gross (tax class I):

• Wage tax: ~€365
• Social security: ~€720
• Net: approx. €2,415 (69% of gross)

Important: your employer pays ANOTHER approx. 21% in social security contributions on top. The "true cost" of a €3,500 employee: approx. €4,235.