What is the minimum wage in Germany? How to read a German salary table
- 14/04/2025
- Hong Hanh
- News study abroad in Germany
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If you are preparing your application vocational training in Germany or looking for job opportunities in Germany, mastering how to calculate payroll in germany will be an important first step to being financially proactive and avoiding unexpected deductions. In this article, SHD Academy will guide you how to read German payroll and detailed salary calculation formulas, helping you optimize your income and plan your spending effectively.
>> Reference:
- Study and work in Germany: Summary of detailed information
- Does studying in Germany need financial proof?
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Overview of salaries in Germany
In Germany, gross salary (Bruttogehalt) and net salary (Nettogehalt) are clearly distinguished. Therefore, you need to clearly understand the difference between these two concepts to avoid confusion, especially if you are not familiar with the tax system in Germany. Specifically:
- Total salary: Is the income before deductions, including basic salary and bonuses if any.
- Net salary (salary after tax): This is the amount you receive monthly after deducting income taxes, social insurance and mandatory contributions.
Regarding the calculation of payroll in Germany, deductions usually account for about 35% of the total salary. For example, if you receive a salary of 3,000 Euro/month (equivalent to 87 million VND), after deducting taxes and insurance, you can receive about 1,950 Euro/month (about 56 million VND), the difference depends on marital status, exemption level and group. personal income tax in Germany.
In addition to the basic salary, many companies in Germany offer bonus and benefits packages such as “13th month salary”, seasonal or performance bonuses. Some international companies may also provide additional support for housing costs, children's school fees or living expenses. settle in Germany.
Note: In-kind benefits (such as company cars, phones, laptops) may also be taxable.
>> Reference: All about health insurance in Germany for international students
How to read a German payroll
The German payroll (Gehaltsabrechnung or Lohnabrechnung) provides detailed information about your earnings, taxes, and social security contributions. Understanding the main sections below will help you better manage your personal finances and understand how your German payroll is calculated.
Personal information
The payroll header records identifying information to determine tax and insurance contributions:
- Date of Birth: Date of birth.
- Arbeitnehmer Nr.: Employee code.
- Steuertage: Number of days in the month that employees are required to pay taxes.
- StKl. (Steuerklasse): Tax groups (1–6), determine the amount of income tax you must pay.
- Ki.Frbtr. / ZKF: Child tax deductions.
- Rel. / Konfession: Religion (affects church taxes)
- RK: Roman Catholic
- – : Non-religious
- EV: Protestant
- Steuerfreibetrag / Steuerfreier Bezug: Tax-free income, if any (tax-free allowance).
- Eintrittsdatum: Start date of work.
- Sv. Tg. (Sozialversicherungstage)Number of days of social insurance payment in a month.
- SV Schlüssel (KV / RV / AV / PV): Insurance contribution code, value “1” represents full contribution.
- Lohnsteueridentifikationsnummer (IdNr.)/ Steuer-ID: Personal tax code.
- Versicherungsnummer/ SV-Nemmer: Social Security Number (Social Insurance Number).
- KK (Krankenkasse): Health insurance fund (where employees register to pay insurance).
Details of salary structure and deductions
The middle section of the pay stub details earnings and deductions:
- Bezeichnung: Describe the name of the deduction/acquisition.
- Gehalt: Basic salary.
- Geldwerter Vorteil/Sachbezug: Benefits in kind (public car, phone…)
- E. (Einmalbezug): One-time payment (holiday bonus, performance bonus…).
- Urlaubsgeld: Holiday allowance.
- GB. (Gesamtbrutto) or St.Btto: Total taxable income.
- LSt. (Lohnsteuer): Personal income tax
- KiSt. (Kirchensteuer): Church tax (only applies if employee declares religion).
- Solidarität Zuschlag: Solidarity surcharge (currently only collected from high-income earners).
- SV (Sozialversicherung)Social insurance contributions, including:
- KV – Health insurance.
- PV – Long-term care insurance.
- RV – Retirement insurance.
- AV Unemployment insurance
- Zusatzbeitrag: Additional health insurance surcharge
- Nettoverdienst/Auszahlung: Actual income received after all deductions (net pay).
Important additional information
The bottom of the payroll provides monthly and yearly summary figures:
- Verdienstbescheinigung: Income confirmation (a copy of your pay slip can be used for banking procedures, renting a house, etc.).
- Monatswerte/Monatssumme: Total salary/month.
- Jahreswerte/Jahressumme: Total salary/year.
- KV/PV/RV/AV Beitrag-AG or AG-Anteil: Employer (company) insurance contributions.
>> Reference:
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Average salary in Germany
According to statistics in April 2024 of the German Federal Statistical Office (Destatis), the average salary of workers reached 4,634 Euro/month (about 134 million VND), equivalent to 55,608 Euro/year (about 1.6 billion VND). However, the actual salary depends on many factors such as age, experience, industry, job position and place of residence.
The information below will provide an overview of the average salary in Germany, which will help you better understand how to calculate payroll in germany and budget for personal living expenses more reasonably.
Salary by industry
Below is the average annual salary by industry (according to Stepstone 2025):
| Industry | Average annual income (Euro) | Equivalent (VND) |
| Medical | 31.200 | 908.000.000 |
| Bank | 42.000 | 1.222.000.000 |
| Finance | 62.500 | 1.818.000.000 |
| Build | 32.750 | 953.000.000 |
| Car | 33.700 | 980.000.000 |
| Food | 29.850 | 868.000.000 |
| Consumer goods | 32.400 | 943.000.000 |
| Restaurant - hotel | 30.000 | 873.000.000 |
Source: SHD Academy
Salary by region
Salaries in Germany also vary between federal states. Western and southern regions of Germany such as Baden-Württemberg or Bavaria tend to have higher incomes, while eastern states such as Saxony or Thuringia have lower than average incomes.
| State | Difference from average |
| Baden-Württemberg | +7.9% |
| Hesse | +7.2% |
| Hamburg | +5.5% |
| Bavaria | +4.4% |
| North Rhine-Westphalia | +1.1% |
| Bremen | –2.9% |
| Saarland | –4.4% |
| Berlin | –5.7% |
| Lower Saxony | –6.8% |
| Brandenburg | –18.8% |
| Schleswig-Holstein | -9.8% |
Source: SHD Academy
Minimum wage for new international graduates
Starting salaries for international graduates in Germany vary according to the level of education and the federal state. Here are some examples:
| State | Average annual income (Euro) | Equivalent (VND) |
| Baden-Württemberg | 60.000 | 1.746.000.000 |
| Bavaria | 60.000 | 1.746.000.000 |
| Berlin | 54.000 | 1.571.600.000 |
| Brandenburg | 53.000 | 1.542.400.000 |
| Bremen | 53.500 | 1.542.400.000 |
| Hamburg | 57.500 | 1.542.400.000 |
| Hesse | 60.000 | 1.746.000.000 |
| Saarland | 54.000 | 1.571.600.000 |
| Saxony | 50.000 | 1.455.100.000 |
Source: SHD Academy
>> Reference:
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Minimum wage in Germany
The minimum wage in Germany is an important factor in protecting workers' rights and is the basis for building a financial plan for international students or workers in Germany. Officially applied since 2015, the minimum wage in Germany has undergone many adjustments to suit the economic situation and living costs.
According to the latest update, from January 1, 2025, the minimum wage is 12.82 Euros/hour (about 373 thousand VND). This means that a full-time worker working 40 hours/week can earn about 2,051 Euros/month (about 59 million VND/month), before deducting taxes and social insurance. This is an indispensable part of the salary calculation in Germany, helping workers to predict the minimum income when signing a contract.
In addition, those who work in seasonal jobs, freelancers or “mini-jobs” are also subject to the corresponding minimum wage. Specifically, from October 2022, the maximum income for mini-jobs has been raised from 450 Euros to 520 Euros/month (from 13 to 15 million VND). This limit is set to ensure that workers remain within the tax-free range and are not required to pay full social insurance. This reflects the flexible adjustment and coverage of the minimum wage policy in Germany, including informal workers.
>> Reference:
- 5 Ways to Send Money from Germany to Vietnam Safely and Quickly
- How much is the cost of living in Germany for international students?
Understanding how to calculate payroll in germany will help you plan your finances more effectively during your journey of studying and working in this country. This is also an important factor if you are aiming for long-term settlement and applying for German citizenship. Do not let complicated regulations hinder your future path. For detailed advice on vocational training and settlement in Germany, follow the section News belong to SHD Academy Or contact hotline (+84) 336 760 276 for quick and accurate support!
