What is a good annual salary

Annual salary: definition, average, comparison

You do not talk about money! At least not openly and directly. Behind the scenes, money and payment is a topic bigger than almost any other. Who deserves what? How good is my salary in comparison? Why does the colleague get more than me? Nothing is so easy to discuss and speculate about as money. As a benchmark, this is above all Annual salary of interest. However, this is not only attempted among friends, colleagues or for round table discussions, but has great effects for every employee - not only with regard to the payments that land on the account every month. We explain what the annual salary is all about, how much the Germans earn on average and which industries do particularly well ...

➠ Content: This is what awaits you

➠ Content: This is what awaits you

Annual salary definition: what does it mean?

The Relationship to money in Germany is difficult. Anyone who reports on their salary is a show-off. If you don't do it, you have something to hide. If you earn more than others, you attract their envy. If you earn less yourself, you keep asking yourself how it can be that the blind fish at the next table gets more ...

The voices calling for an end to secrecy are increasing. The Pay Transparency Act also goes in this direction.

The Annual salary is a good size to start such a discussion. It denotes the Gross income from non-self-employed work over a period of twelve months. Unless the monthly payment is specified there, the annual salary is also fixed in the employment contract.

The annual salary also includes additional payments and benefits that you receive from your employer. For example, is this ready for you Vacation pay or a 13th salary To be paid in the form of Christmas bonuses, these special payments are included in the annual salary.

Your personal annual salary is also an important factor from a legal point of view. The annual income serves as Assessment basis for your income tax. How much is taxed and whether you will receive a repayment at the end of the year - or have to pay it yourself - is directly related to this.

Last but not least, the annual salary affects yours Compulsory health insurance. If you have a high annual salary, you have voluntary statutory health insurance or you can switch to private health insurance. Here you have the choice.

Annual salary: this is how it is made up

One sum, one salary, done. As a rule, it is not that simple. Nowadays, salaries are often made up of an insane number of individual components. Namely from these:

  • Fixed salary

    The fixed salary components make up a large part of the wage in some branches and only a small part in others. If you work in a company with a collective agreement, the fixed salary depends on the wage group you are in. Depending on qualifications and length of service, the fixed salary can then be very different.

  • Variable salary

    Especially in the distribution it is customary to pay out a large part of the salary in the form of variable components. If the contract is concluded with the customer, there is a commission for the employee - otherwise not. This can lead to very different salaries - for employees in completely identical positions. Variable components offer a good starting point for applicants in particular negotiation. According to the motto: I will initially forego a higher fixed salary if, in return, the variable parts are higher.

  • Special payments

    These include - those that are particularly widespread in the banking and financial sector - Bonuses. Also Christmas and vacation pay increase the salary. In addition, surcharges for Sunday shifts and late shifts, loyalty bonuses or even relocation allowances.

  • shares

    A popular option to attract executives to a position is Stock option plans. The manager can buy the shares at a certain price, but also has to hold them for a fixed period of time - often for several years. The advantages are obvious: individual and corporate success are linked. If the manager works successfully in the interests of the company, the price rises. Long-term strategies also gain greater weight in this way. Employee shares in turn, are aimed at the employees, including those from the middle and lower levels. If you participate in the company's success, then - so the hope is - identification and performance will increase.

  • Additional services

    The possibilities are endless. Company cars, training opportunities, canteen or meal vouchers are possible, capital accumulation benefits, Employee discounts, company pension schemes.

This is the average annual salary

The good news first: The average annual salary in Germany (measured in terms of full-time employees) is rising steadily. In 2016, the average gross annual salary was, according to the Federal Statistical Office 44,436 euros (this corresponds to a monthly salary of 3,703 euros) - an increase of 91 euros compared to the previous year. If you look back ten years, the annual salary has even risen by almost 700 euros on average.

The development of the gross monthly salary in Germany:

  • 1991: 1832 euros
  • 1995: 2281 euros
  • 2000: 2551 euros
  • 2005: 2901 euros
  • 2010: 3227 euros
  • 2015: 3612 euros
  • 2016: 3703 euros
[Average gross monthly earnings, source: Destatis]

There are still a few downsides. On the one hand, the development of the annual salary must, of course, be the Taken into account for inflation become. In other words: The higher salary has only a smaller benefit if the value of the money decreases and the cost of living becomes more expensive overall. As is well known, a higher annual salary does not automatically mean that you can afford more.

Even though the average annual salary looks good, that But the differences are sometimes enormous. By no means everyone gets 3,700 euros, or even rudimentarily as much.

There are big differences, for example in geographical terms and between the sexes. According to the Federal Statistical Office, men earned an average of 3898 euros a month in 2016, while women earned significantly less with 3258 euros.

This is how you can influence your annual salary

Your annual salary depends on various factors above all, of course, from the job and the industry in which you work (more on this below). But there can also be differences among direct colleagues. They may not be that big, but even 100 euros a month makes a difference of 6,000 euros over a period of five years, which is quite realistic as an employee relationship - so it is worthwhile to adjust all the adjustments to your own annual salary rotate.

One possibility is of course Salary increases and salary negotiations. They perform well, can convince the boss again and again, land orders and make customers happy. Anyone who turns to the boss with such a reputation has many trumps in hand to supplement their own annual salary. However, it usually takes at least twelve, if not 24, months before the salary is increased.

If you want to earn more right from the start, you have to get your annual salary at the interview and at the latest until the contract is signed negotiate accordingly. Many companies ask you to include an expected salary in your application. If you sell yourself below value here, it will be difficult to come up with a satisfactory annual salary.

For further discussions about the annual salary the following applies: Knowledge is power. If you know not only the average pay, but also your personal market value, you can make effective arguments. The higher you go with your demands, the better you should be prepared and be able to give reasons that set you apart from other employees and justify your higher annual salary.

Annual salary in comparison: There's the most here

The approximate range of your later annual salary is determined relatively early. Or to put it another way: if you want to earn a lot in the future, you should think about it when choosing your degree, training and employer.

While some industries are known for just one Starvation wages employees in other areas are greeted with envious looks when comparing salaries. The Stepstone Salary Report 2017 (PDF) for specialists and executives impressively shows how big the differences are.

The best prospects are in the chemical and pharmaceutical industries. Average annual salaries (gross) of 68,214 euros respectively 67,675 euros paid. Just behind are employees in the aerospace industry (67,578 euros) and in the automotive sector (67,401 euros).

It looks very different in the Craft out. With an average annual salary of 37,625 euros, this industry is in last place. The situation is similarly bleak for salaries in the hotel and catering trade (39,091 euros) and in education and training (40,430 euros).

If you really want to clear away, you can go through the Choosing the right course of study already initiate a lot. With an average annual income of 79,538 euros, medical professionals are by far in the lead. Graduates in law courses as well as engineers and industrial engineers can also look forward to a financially rosy future.

Take advantage of our free paycheck

In order to negotiate a raise, you should yourself based on your market value and best prove this with appropriate performance. Can help you with this our free and individual salary reports. You can find an example PDF with fictitious numbers HERE.

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