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What drives employees? There are many answers to the question: Responsibility is one thing, appreciation is another. And money? Not so important. More salary can even be dangerous.

According to the motivational pope Sprenger, money can trigger a flash in the pan motivation. “The half-life is usually no more than 48 hours,” says the management consultant. Happiness researcher Ruckriegel is a little more optimistic: “Once the basic needs are met, it takes about two to three months for the employee’s expectations to adjust and for them to be just as satisfied as they were before the salary increase.”

In the long term, however, there is a risk of dramatic consequences from excessive financial generosity. According to Sprenger, it increases the stimulus and expectation level and can thus trigger a real addiction to rewards. Ruckriegel also warns: “You always have to push more, but at some point the end of the road will be reached.” And the higher the starting salary level, the lower the impact on productivity and the higher the greed. Because then the main thing is to earn as much as possible more than the others.

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.

It is said that a salary increase should have little effect on motivation at work. Appreciation and more responsibility are the key. But that’s not entirely true – because salary does play a role in employee satisfaction.

Money alone does not bring happiness – this is the result of countless job studies that have examined how the level of salary affects the motivation of employees. Sometimes experts are looking for the ideal salary that makes people happy. Time examines how salary increases affect employee engagement. The answers that these studies give to the salary questions are similar: salary increases only have a minimal effect that quickly fizzles out over time. If you want to motivate employees or keep them in the company, you should use other means as a boss.

All of this may be true, but it is not the whole truth. “Money does not necessarily generate motivation, but if the payment is not right, demotivation can arise,” says psychology professor Maika Rawolle from the University of Media, Communication and Economics in Berlin to the “Süddeutsche Zeitung”. The unclear expression of “incorrect salary” is very correct, because there are some salary constellations that reduce motivation. Everyone agrees: It’s about injustice, that is, about a comparison.

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.

We answer the question “what is a good salary in Germany?”. We tackle the average annual salaries based on different factors and provide an answer to the question: “Will my salary be enough?”

YouTube comments:

“This is a great video with a good breakdown! I moved from a big city and took a paycut on my previous gross salary, but I have been amazed how much I am provided for in Germany and never really felt broke despite technically having much lesser money than before. I think until you live here and really experience the economy and plan your finances, the numbers are just… numbers! End of the day I believe we should be fighting for fair salaries, and not higher ones just for the sake of it.”

“Whenever I read about 40% taxe rate, it makes me a bit frustrated. But looking from the other perspective, all of those high contributors I make are the reason why the life for people all ages so good and reliable in Germany, right? I would like to reveal those details and understand the real value of the contributions I would make :)”

“It’s however important to mention that living in Germany you have access to many amenities and infrastructure not available to you in other countries unless you hire someone yourself or you pay a net price for it.”

A good salary in Germany is the one that will allow you to afford the lifestyle that you want. Anything above 47.700 euros a year (gross) will place you in Germany’s above-average range of income.

While other European countries make the transition to cashless societies, Germany still has a stubborn affection for a pocket full of loose change. Rachel Stewart investigates the very specific German attitude to money.

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.”