Das Kündigungsschutzgesetz. Dismissal protection applies in German establishments with more than ten employees, after six months of service. From that point a dismissal requires a legally recognised ground. The employer must justify the dismissal. The burden does not sit with the employee.
Social selection
Die Sozialauswahl. When a German employer must make redundancies, the law does not permit a free choice of who goes. Selection must be made on four criteria: length of service, age, maintenance obligations, and severe disability. Performance is not among them.
The longer you have been there and the more people depend on you, the more protected you are — regardless of how good you are at the job.
Short-time work
Kurzarbeit. When demand collapses, a German employer cuts hours rather than jobs, and the state pays workers around 60 percent of the wages lost — more for those with children.
A work-sharing scheme was first used by German miners as early as 1910. It flourished under the Weimar Republic, was written into employment promotion law by 1969, and was used again during reunification. In mid-2009 over 1.4 million workers and 63,000 employers were in it. In 2020 a study attributed 2.2 million saved jobs to it.
The IMF calls it the gold standard. The country built a permanent institution whose purpose is to make redundancy unnecessary.
Germany to smooth entry for foreign skilled workers
The German government is drafting new plans to smooth the entry process for foreign skilled workers. It’s a move that companies say is long overdue: The country’s aging workforce is a growing liability, while positions in IT and software development are notoriously hard to fill. More companies are now looking abroad for help.
YouTube comments:
“I am a Spanish Software engineer living in Germany, I love this country. The language barrier was difficult, but my german wife helped me a lot.”
“German companies should start paying more, to begin with. I have hard time believing they can attract top talent with present level of salaries. Even their doctors are leaving en masse to other countries.”
“To compare German passports with Titanic tickets might be too harsh of a comparison. But if German thinks its innovation can be fueled by mercenaries, that kind of human resource policy is doomed to fail. Companies give options and shares to encourage employees to give their best and be loyal. There’s a reason electric cars are re-imagined in the USA, by immigrants, not in Germany where all the automobile giants reside. But well, some people try to steer the Titanic, some probably are proud just sinking with the tickets in their hands. If there’s a book that fits German’s approach, it’s “Only the Paranoid Survive”, the thing is 🙂 Germany often is paranoid about the wrong thing.”
“There is a very specific and a systematic reason as to why in the 50 years of the software/Internet/IT industry, there has NOT been a single non-American company which has gone on to become a globally profitable, consumer product, and a publicly traded company. Germany still lives in the 19th century when it comes to their traditional companies. You have to accept the fact that English is a global language. No one speaks German in Asia, for example, which is the two thirds of the world population.”
“They are more skilled workers in Germany than they need, the problem is the companies require you to speak fluent German language which is impossible in one year. They need us but they don’t want us!”
Features of German Employment Law
Relations between German employers and employees are extensively regulated under German labor and employment law. German labor and employment law is strongly biased in favour of employees and is probably best referred to as the “employee protection law”.
Really different in Germany & USA
Vacation, taking sick days, maternity leave…work-life balance is really different in Germany & the USA.
So my question for you is: How do you feel about work-life balance? Is there anyone out there who prefers the way that it’s done in the U.S.? And people with children, what’s the parental leave been like where you’ve lived?
Salaries in Germany by profession
March 2020. Currently, the country has one of the lowest unemployment rates in Europe, hovering around 3-4%. Having one of the most diversified economies in the world, Germany offers jobs in almost any sector.
Salaries in Germany are also quite high for global standards. The average net salary in Frankfurt is 2700 EUR per month. In Berlin, the average net wage is 2500 EUR per month.
Some economic sectors in Germany have a greater demand for foreign workers than others. Notably, health care and tech are among the sectors with the highest demand for foreigners.
Salaries in Germany
Many people are moving to Germany because the working conditions and salary are often much better than in their home country. See how much money you can expect to earn and get some insights from a German.
YouTube comments:
“After working in Germany for several years in different cities and PhD in STEM, I can tell you that salaries are not that high as people imagine. After considering expensive rents and high tax, your disposable income isn’t much. The benefits come from social benefits, usually nice working hours, paid holidays, healthcare, great cheap alcohol and peaceful country. If you seek making a lot of money, Germany isn’t your country. In Europe you probably have look north for higher salaries and Switzerland, in Asia, some highly developed countries like Singapore. If you have a high level of education and work for a good company in the USA and even sometimes in Latin America, are better places to make great money. But hey money isn’t everything, you need to evaluate pros- and cons.”
“While average income in Germany was relatively high in 2019 with ~€3500 as mentioned in the video, the median was much lower with just €2500 (gross income). That means that 50% of the German population earn less than €2500 (~€1700 after taxes and insurances). It’s also worth mentioning that you’re considered upper class with a net income of around €5500 gross income, but you have to pay the property tax with just a monthly income of around €4500 gross income. If you plan to buy real estate in Germany: Forget it.”
“I work in a big car company in Germany as Engineer… and I can tell you the salaries are not high compared to the very high rent (or apartment prices), taxes and high prices of Energy and Benzin in Germany. I really wonder how people here are able to live who get lower salaries. And at some point you have to save to buy a house or an apartment (with something like half a million Euro) because after geting retired, your income gets 60% lower and then you will not even afford the rent of your apartment. I saw retired people who had to move to smaller worse apartments or ask for social housing or shelters. I think life here is not as rosy as people in the third world think. What is worse is: I think the government and politicians in Germany do not care much about this problem, or act as if there is no poor people in Germany at all. Politicians in Germany are rather busy with saving the Earth, recycling and cutting CO2 as their main mission… helping the poor or the middle class in Germany comes as second priority.”
“From the US here and about to start my first job out of college in Germany. I’m going there for the quality of life, I don’t care that I can make more here — if I die tomorrow the extra savings means nothing, but a strong welfare/healthcare system, fewer stupid people, better infrastructure, lower crime rates, better work culture, decent politicians, beautiful nature and architecture, etc. will have made me enjoy my life every day. I want that peace of mind and I can’t get that here. Everything is fundamentally messed up here and nothing will change in a meaningful way anytime soon.”
How much does an Engineer make in Germany?
The estimated total pay for a Engineer is €67,886 per year in the Germany area, with an average salary of €62,886 per year. These numbers represent the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
The estimated additional pay is €5,000 per year. Additional pay could include cash bonus, commission, tips, and profit sharing. The “Most Likely Range” represents values that exist within the 25th and 75th percentile of all pay data available for this role.
Money is not everything
Do you want to pay your employees a bonus? Beware, this might not be a good idea: Studies show that extra money can hurt employee motivation and job satisfaction.
What is the ideal salary? Even if funds were unlimited, pinpointing the ideal salary would be difficult. The first intuition is: the higher the salary, the better the work results. But studies show that the connection between compensation, motivation and performance is much more complex. In fact, there is some evidence that people would not be happier in their jobs if they had control over their salary.