2024-09-11 12:40:27
With its beautiful waterways and beautiful boulevards, Hamburg is a German city like no other. Located just a few miles inland on the river Elbe, the city is steeped in maritime history, with a turbulent trading economy dating back to medieval times.
These days, however, the Hanseatic city is known for different things: its rich culinary culture, its vibrant nightlife, and the lively atmosphere of the Reeperbahn, where tourists and locals rub shoulders in the bars and theaters.
With so much to offer, it’s no wonder that Hamburg is one of the top destinations that foreigners in Germany choose to make their home.
Almost a quarter of Hamburgs 1.8 million inhabitants are foreigners, too around 400,000 non-Germans Currently living in the city. Meanwhile, 34 percent of the population has a migrant background, giving the city a truly international feel.
In terms of economy, it also happens to be one of the richest cities in the country, with workers there enjoying salaries that are better than average for Germany.
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As well as famous German employers such as Lufthansa and Techniker Krankenkasse, English-speaking foreigners can also find opportunities in international companies such as Google, Airbus and Hapag Lloyd.
Here’s what salaries to expect in Hamburg and how it compares to the rest of Germany.
What is the average and median wage in Germany?
According to data published by German statistical office (Destatis)the average monthly salary across Germany in 2023 for full-time workers is €4,479. This corresponds to an annual salary of approximately €53,748 before tax.
The average score is calculated by adding all the individual values and dividing the total by the total number of values.
Another way to look at this is through an intermediary. It is calculated by taking the ‘middle’ value, the value at which half of the salaries – in this case – are large and half are small. This is always intended to give a more realistic picture.
A jogger in Hamburg. How do Germans prepare for the rising heat? Photo: alliance art/dpa | Marcus Brandt
According to the job portal Stepstone’s report 2024, the median salary in Germany is around €3,645 monthly, which works out to around €43,740 per year before tax.
But salaries in Germany can differ significantly depending on where you live. More than 30 years after reunification, for example, there is still a significant divide between eastern states, where wages are lower, and western states, where wages are often higher.
What salaries can foreigners expect in Hamburg?
For foreigners looking for job opportunities in Hamburg, the good news is that the city state boasts one of the highest median salaries in the country.
In fact, when it comes to all Federal state – or federal state – Hamburg land at the top of the place.
Just like us recent analysis from Stepstone based on data from November 2023, the median salary in Hamburg is €49,700 per year. This equates to a pre-tax income of around €4,140 per month.
Stepstone also tracks the salaries of different types of workers, from skilled workers to those with no educational qualifications.
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The 2024 report tracks a median salary of €57,500 per year for so-called graduates, or those with university degrees, while the median for unqualified workers is €43,250 annually.
People in managerial positions in Hamburg earn a healthy median salary of €81,500 – the highest in the country for this type of role. Skilled workers, meanwhile, earn a median salary of €44,000.
In another study carried out about Azubiyo apprenticeship portal and based on 2021 data, Hamburg also appears as the state with the highest average salaries.
According to Azubiyo, the average worker in the Hanseatic city receives an average salary of €5,209 per month, equal to €62,508 per year.
What jobs pay the most and the least?
As you might expect, the port city of Hamburg is also heavily influenced by its maritime past, with shipping and logistics also playing an important role in the economy.
However, things are changing rapidly, and workers these days are likely to find a wealth of opportunities in aviation technology, renewable energy, technology and IT and media in Hamburg – with technology and engineering jobs command the highest salaries of all.
According to Azubiyo data, aviation directors receive the highest pay packages, with workers in this field earning an average salary of between €6,000 and €8,000 per month.
Marketing professionals are also in high demand, with this group of workers taking home anywhere between €4,100 and €7,500 per month on average.
In the IT department, project managers can expect salaries ranging between €4,000 and €6,200 per month, while consultants command monthly salaries of €3,900 to €5,600.
Transport traders can also do well in this port city, with average salaries in this field ranging from €2,600 to €4,000 per month.
On the lower end of the scale, meanwhile, are hospitality workers like bartenders and waiters. Wages here start at €12.41 per hour’s minimum wage, which equates to around €24,600 per year or €2,050 per month.
However, with more experience or in more senior roles, salaries in this sector can be between €27,300 and €35,600, according to Stepstone.
What is left of my German salary after tax?
An important thing to consider when looking at your earning power in Germany is how much of that salary you will be able to keep.
Salary quotes from companies will tell you exactly your net income (Average wagesbut you will also need to calculate your net income (Net income), which is the amount you take home after taxes and deductions.
The German tax rate starts at 14 percent for people earning just over the €11,784 threshold, but most full-time workers can expect a tax rate of between 25 and 42 percent on earnings over that threshold .
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For the region, a rate of 30 percent is applied to salaries of up to €36,000 per year, while a top rate of 42 percent is applied to salaries of up to €66,000 per year and above. Parents and married couples receive some taxes.
You will also have to pay social security contributions, which are shared equally between you and your employer.
In 2024, the rate will be 18.6 percent for pension contributions, 14.6 percent for health insurance, 3.4 percent for long-term care insurance and 2.6 percent for unemployment insurance. Again, you will be expected to pay half of this.
People who calculate their income. Photo: alliance art/dpa/dpa-tmn | Christine Klose
If this all sounds like way too much mental math, things online tax calculator can help you sort it out Net income from you Average wages in seconds.
Any additional income you make on top of your income must also be included declare it to the tax office and you have to pay tax on it.
What is the cost of living in Hamburg?
Working in this vibrant port city comes with a downside: the high cost of living.
Like most of all German cities, prices for things like rent, living and dining skew higher than the rest of the country.
In all, the cost of living is 11.5 percent higher than the national average, according to figures from the German Institute of Trade (IW).
However, Hamburg is far from the most expensive city in Germany, landing in seventh place in a recent IW survey.
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In this year Mercer Cost of Living surveyMeanwhile, Hamburg ranks fifth out of eight German cities considered to be among the 100 most expensive in the world.
For a more detailed breakdown of what to expect, the cost of the carrier site Numbeo tracked data from users and other sources to find the prices of everyday goods and services in Hamburg.
They found that one person faces monthly living costs of up to €1,075 in Hamburg, excluding rent, while a family of four needs around €3,660 per month to keep their heads above water.
Compared to Berlin, prices for everyday products are around 4.7 percent more expensive. However, this excludes rental prices, which are currently around 14 percent cheaper in Hamburg than in the capital.
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