Family Moving to Munich - expense & salary

I am surprised you have been offered a net (after tax) amount - this is VERY unusual in Germany, as the tax situation is too complicated (and too variable based on your personal details) to be assessed by an employer.
In any case, the amounts you are offered are doable, but tight, since Munich is the most expensive city in Germany.
A two room flat (one living room, one bedroom) for a family of four is considered too small by German standards. A three room flat within the city limits will cost you EUR1000-1200/month rent (plus approx. EUR200/month utilities). The minimum you'll need for daily expenses etc. is probably EUR600/month per person. Please note that this does not include a car, holiday trips, child care (which costs EUR200-500/month) or international school for your kids (local schools are free, but in German!) and other additionals and luxuries.
To get from A1 level to active participation in customer discussions will require hard and intensive work - you'd have no free time in these first six months! If you take this option, I recommend you come alone at first, to be able to fully concentrate on the task, and have your family follow afterwards.

Thanks for reply Beppi. They offered me gross, I calculated the net from netto bruto site. Option 1 : 57350 gross + 4350 bonus .
Option 2: 52750 gross + 4200 bonus.

A friend told me food in Germany if home cooked not expensive. Like 2 people can have good home food for 400 a month.

So around 3200 looks tight I assume.

Yes, preparing your own food is the cheapest option, given the high cost of labour and thus any services including it in Germany. (A restaurant meal costs EUR20-30/person, more for Indian food.)
I would budget at least EUR10 per person per day for food, especially for a newbie who doesn't know yet where to buy cheaply (and doesn't have a car to buy large amounts at out-of-town discount markets). It also assumes you make do with local foodstuff - anything exotic (and that includes Indian ingredients and spices) requires more effort and money.
This then amounts to half of the daily expenses budget I mentioned. The rest is transport (a pass for public transport costs EUR50-100/month depending on area covered and is worth it even if you only make a single trip per day on average), toiletries, clothes, an occasional snack or cinema ticket, etc.

So local food spices and the home made food cost:400 for two
Transport per month cost 4 rings: 70 per month for one person= 140 for two.
Accomodation outside city center (perlach or neuperlach sud) 3 room =1250 kalt miete + additional 250=1500
Clothes/entertainment=300 per month
2 babies clothes food 300 per month
Total=2640 approx.roughly 2700 per month.

Is this estimation correct?

As I said, your food budget is too low in my opinion. But maybe you can make it work by eating mostly potatoes?
In addition, a baby needs more than EUR300/month. In my experience you need similar to an adult (for which my budget suggestion was EUR600/month). Again, you can probably make do with less if you buy second hand stuff on flea markets for baby stuff (there are many of them in spring and autumn).
You should also not under-estimate the initial one-time expenses: Rental deposit is 3 months rent, plus 2.4 months as fee for an agent if you engage one, temporary accommodation for the first two or three months (the rental market has long lead times - you will not find something that is available for move-in within weeks!), plus EUR4000-5000 for furnishings (apartments are entirely empty here, with not even lamps or curtains, although a kitchen may be present in some). So bring along some savings!

yep.
A really rudimentary food budget in München would be around 650-900 €. Lived there. 1100€-1500€ is average (I imagine you want to also integrate = meet people and not live like a monk, see a biergarten in Summer, drink Glühwein in Winter). I think Beppi was hinting tongue on the cheek- there with the potatoes  -but he is right its far too low estimate
It would be wise to have around at least 5k startup capital for the move (deposits, registration fees, fittings etc)

Remember you're not fully efficient on day 1 with where to buy, which foods brands is good replacements of what you know etc. If you plan only transport by train - remember - the shopping centres have higher prices near the train stops. Those with more value for money are accessible by car.

Unless you have a natural gift for speaking languages - ie quickly acquired Spanish French, Chinese until now and are learning Swahili just for fun on the sideline, I would advise you to lower your expectations  :

I had a fulltime German A1-B2 course for 2 months before I started working- with a weekly personal language trainer accompaying me for 6 months after that -Still it took me 8  months just to accurately follow a normal conversation on the street. (Avg Math/Technical minded brains are slower with late acquiry of language - than marketing social and sales minds. ). Dialects comes on top. From own experience and that of other expats we witness this phenomenon - Adult brains learn the language in 3 stages (i) first with the ears - understanding but unable to speak back, (ii) reading - "forming" the word from ears in our mind and lastly (iii) connecting ears with the mouth. It doesn't happen all in one go. That last connection is the most difficult- usually after 8 months, because our ears are telling us what gibberish we expose of ourselves, which is a natural barrier from letting you look and feel stupid.

Normally when you sit in front of the customer, you have to be verhandlung sicher (C1), ie can catch nuances and lead the customer back to the topic without affront, ending successfully in a signed contract.

So its possible that your business contact in Germany  :
a) only deals with staff acquistions and are not dealing in international teams a lot (is this only regional business?), or
b) your CV oversells your ability and this is (company policy) standard practice to seperate the chaff (...hey - you might be superman afterall and be fluent in 6 months). Then be careful, Germany is much harsher on people who have painted their CV in over-rosy tones. Beppi's recommendation of waiting to bring your family over - is, in this point then a very wise one.
c) know that you will not deal with decision takers on the other side of the table. The only two IT businesses in N/Perlach, that would take such a risk would be "A" or "S"  - Risk, since they have to have very good excuses not to appoint a local at that level.

All in all with the food situation - Since its customary in certain countries for men to either have their wifes food delivered personally at lunchtime, or going home for lunch - these choices could become a dichotomy for you. Of course a lot of people can live on such salaries in Germany, far outside München. The further you are living away from a metropole however, the more "closed" communitities become and so be more difficult to be assimilated.

Solid reply thanks. I'm quite good in my domain as a BA & its a telco company. So nothing bout overselling. However i am really concern now that the net salary seems too low. Ofcourse i wont survive on poratoes only. I want to live good life see places, enjoy in biergarten once in a while etc. my present life in my quite good and above average with current job.If this net salary of 2980 per month is such a low figure that i am struggling to do all, then will ask my employer to revisit. So it looks like rent 1500, food atleast 700, baby food clothes 600 for two, entertainment stationaries snacks 400, holidays 200 per month. So total about 3400 minimum would be needed. So i will ask my employer to revisit it then. Is this estimation correct now?

Avishekm wrote:

I want to live good life see places, enjoy in biergarten once in a while etc. my present life in my quite good and above average with current job.

Beergardens are indeeed a part of Bavarian culture and not to be missed on a hot day. However, a beer each for two people together with a small snack (NOT a full meal) will cost you at least €20 - there goes your food budget for two days!

For comparison:
The German average household income (please note that the average household has 2.2 people) after taxes and deductions is €3300/month, and in Munich (Germany's most expensive city) it is probably above €4000/month.
The usual starting salary for a fresh IT graduate is around €2500/month after taxes and deductions (€3750 before).
The official poverty line (subsistence level) for a couple with two kids is slightly below €2000/month.
Thus you should be able to manage with what they offered you, but it might not be the life you are dreaming of.

Good luck with your negotiations!

it looks at least average, yes.

The question is less on whether you're good compared to those around you, but rather that the job is so special that no German or any European is available to fill its place. Only beyond 48,4k€ qualifies as skilled labour (entry level for IT is 37k). The category which you're applying for is very close to semiskilled labour- ie a German speaking experienced developer with 10 years (industry exp).

The average price niveau for highly qualified specialists was 86k€ (in 2008). Knowing Germany, highly qualified means that you're close to godly - and that should not be taken lightly. And the best paid, non university going profession is pilots @ 225k€ (in Germany, only. Netherlands ranks higher).

Know, that many a fellow country men, in the past, have been overly innovative on selling their achievements from your region. Some applicants even saved Microsoft singlehandedly. A very capable colleague of mine from Bangalore - India's "Silicon Valley" (now living in Canada) is always very sad about the damage this innate behaviour does his fellow professionals. Kolkatta lists number 14 in India for Information Technology and Telecommunication, so that gives you a relative barometer.

Cultural difference :
Back at India this is quite at the order of the day for IT companies to have outsourced companies doing a full-fledged background check on you on behalf of the company and a job confirmation is almost a 100% guarantee of your personal future success (for Rs3,000). The "Uber" case is a recent reminder of this exactly this matter for international companies.  This is a major cultural difference, where Germany doesn't perform such test, but rather on the job.

Our working place have development units that spans India, US, Sweden, Germany, China - So we can make some comparisons - Whereas the feeling of belonging to a family in your working place is almost taken for granted, in contrast, in Germany, your ability to "function" on day 1 and chirurgically disconnect private from work is held in high regard.

It is not unusual to see Architects and Analysts leave after just 2 weeks on the job, usually on request from an international customer, because their skills spider diagram doesn't match the expectation or what applicant thought of himself. Yes, this can be pretty unfair to those job-applicants that didn't suspect this differences in "normal" in the global marketplace. 
Again, there is relative differences in what "decent lifestyle" means between India and Germany. By all means, take a personal chance, but be considerate of your family, now that you know the background.

Hi,
Thanks for such detailed information. My employer can extend the offer to 62k bruto and no more. So seems like I will have about 3300 in hand every month. They dint mention bit o think bonus is part of 62. I am aware of the German work culture but not sure about expenses of family. I stayed there for 1.5 years in 2007-2009. The company I worked for that time, is the same company who has offered me. So known compan, known people, known boss and known environment. Its bad that did not pick up the language well that time. Though I can speak basic but not fluent surely. If I stay near south of Munich, Neuperlach Süd or south, is it possible to rent 3 room apartment within 1100? My office is in Neuperlach Süd Can you suggest suburb south of Munich from where travelling to Neuperlach Süd is bot more than 30 min? Possibly apartment rent would be less there.

I actually grew up in Neuperlach, but moved away quite a few years ago, so am not sure about the rents there any more. I doubt that it's any cheaper than elsewhere in the Munich area. Check online classifieds to find out!
But you can take the S-Bahn from Neuperlach Süd station to 30min outside of town (Aying or beyond) and you are in the cheaper and very pretty (but boring) countryside.

Ok. So at least you gained 400€ /m with these additional arguments in your negotiations so far (from your first posting, until now). That's quite good for a first round.
Also, the new facts - that you already worked at the same company, same job in Germany a while back was very important information that was missed in the first round.
The Tax at 62k is ca 14.2k€ (ca. because in reality the actual calculation have small deviations). Anyway it a good way for you to compare Brutto to Netto.

The fact that you were able to jump by 400 tells me there is sufficient air for 200 on top and no further (guestimate). The real challenge is probably the earlier salary that was established 1,5 years ago. That figure tend to stay in the head across the table whilst negotiating - as mental barrier. Your personal relationship should help you to make a phone call to get a lie of the land. If there is no positive feedback, I guess 400 is the max - pushing beyond that will only worsen things. Good luck with the negotiations/ acceptance.

I think my petsonal relationship with them has make them increase it by 400/m. However from my point of view i dont how mych of german will u learn in 6 months. Actually i told them that in 6 month one can only try to learn fast but communicating an understanding most normal conversation will not be possible. I dont consider myself superman and dont my employer to hold false hope. Few queries:
1.What are the places in Munich where I can rent apartment max in 1100 kaltmiete?
2.Being a english speaker Is it easy to get job in Munich in IT management as a freelancer or full time?My wife works as a junior project manager. Just checking feasibility of her employment as well
3. I know kindersgeld is available for having kids. Is it available for skilled worker (being parent) with work permit as well?

good.
1. this link
2. Same rap. Can she speak German well? Is she highly skilled? If no to both, then you'll probably be lucky if she gets a 3 month tourist visa (2x) up until your probation is over. It is not going to be a walk in the park for your family - especially your wife. Based on that its 100% certain that she won't get a long term job in the beginning. Hence, heed the suggestion from Beppi - really consider being lonely and cooking yourself at least the first 3 months. This is one of the many known issues.  The process has got pretty complex since 12 years ago. At a stage your wife had to show a B1 to get a temporary stay visa. This was discussed hotly the last year. Their logic is partially understandable : If your wife would get a permanent stay visa and leave you on the next day, she'd be entitled to stay - hence it could be misused.
3. Sure. You pay your tax - you get the same benefits.

Aha. on the spouse part the information is not complete. I know she will get a unrestricted work permit right from the start with me, however I don't know if she would get a job without speaking german. The reason i am so sure is that she got it one already when I applied last year for a work related cause in Dusseldorf. The spouse needs to pass B1 is true, however if the spouse is having high qualification like engineering or masters she need not learn B1. My wife is an engineer with 4 years degree.

but I don't know how difficult it would be for her without knowing German. Now I think i must explain my current condition so that I get a more practical response.
Currently me and my wife both are working and earning quite good. We own a apartment in a good locality and have a car too. We are expecting twins next month. as of now we are saving about 1500 euro (if converted to euro) per month from our monthly take home after all expenses. Of course our annual bonus are not counted (which add another 2600 euro per year). On the other hand we are living in a developing country with increased crime rate, increased pollution and poor infrastructure. the normal day to day life is definitely not good. The environment definitely not great for growing children.

Under these circumstances If i relocate I would be loosing money for sure, however If I and my family do not get a good standard of living even after spending most of my money, i dont think relocating is a good option. Even I might loose my job within 6 months if my language is not improved, so lot of risk for my family too. I am struggling to make up my mind at this stage.

We cannot make the decision for you. But if you want financial freedom AND a good life, you may have to compromise somewhere. Also, only you can tell what a good life means for you - e.g. is the complete lack of affordable household help or child care (which will prevent your wife from working for at least two years after your kids' birth) compensated for by the availability of greenery and a cleaner environment?
In general, richer countries offer a better standard of life at much higher cost. But happiness depends more on your state of mind than anything else - please note that many Germans are unhappy and dream of living in third world countries, where they can afford far more luxuries.