Remuneration structure in Germany

Cheryl Moderator

Member since 15 October 2018

CherylModerator22 October 2025 06:02:11

14938

Hello everyone,

Understanding the remuneration structure when living and working in Germany will help you better navigate professional life. In order to help other expats and soon-to-be expats grasp everything from gross pay to net pay, we invite you to share your experience.

How is your remuneration structured in Germany: basic salary, commissions, 13th month, etc.?

What are the common or mandatory allowances included such as transports, health insurance, pension contributions…?

What are the taxes and social contributions to be considered, especially if deduction is made at source?

What is the regular salary payment frequency in Germany: monthly, bi-montlhy, weekly…?

Is it acceptable or common to negotiate salary or benefits?

Are there any specific differences in remuneration structure between expats and locals?

Share your insights and experience.

Thank you for your contribution.

Cheryl
Expat.com Team

beppi Germany/Singapore Expert

Member since 08 August 2010

Germany & Singapore Expert

beppiGermany/Singapore Expert22 October 2025 08:16:50

15577

In Germany, salary is generally paid monthly at the end of a calendar month by bank transfer.

A 13th month payment (usually in December) is common, but not mandatory.

Taxes and social contributions are deducted at source, so you will only get roughly half of your contractual pay into your bank account.

Negotiate your pay before signing the contract! Unless you receive a promotion, there will be little scope for this (and in many companies none at all) after you start work!

Headrock Member

Member since 15 October 2024

HeadrockMember13 November 2025 17:15:54

In Germany, most employment contracts include a fixed monthly salary, with payments made at the end of each month.

Social contributions (health insurance, pension, unemployment, long-term care) and income tax are deducted directly at source.

Additional benefits depend on the company. Some offer a 13th salary or performance bonuses, while others include transportation allowance or a subsidy for health insurance, especially in private Krankenkasse models.

Salary negotiation is common, particularly for skilled roles. Expats and locals generally follow the same salary structure, although language level (usually B2–C1) can influence the offered range in customer-facing positions.