HalloGermany

View Original

“Please include your salary expectations”: How to figure out the right salary level and negotiate it

Jana Koehler

Has this also happened to you? You see a really exciting job offer and then this statement appears. Even though a job interview is still a long way off, you are already supposed to come up with an exact salary expectation. In this article we explain how you can deal with this and negotiate your salary the right way.

No matter if you are starting your career or changing jobs, sooner or later, each of us has to formulate a salary requirement at some point. In Germany, this information is often already asked for when submitting your application documents and is usually raised at the latest during the interview. 

There is only one exception: If you apply for a job which falls under a standardized tariff agreement (e.g. in public institutions or professions with active labor unions). In this case, the salary levels are usually transparent and only negotiable to a very limited extent.

How much salary can I ask for?

To get a basic understanding, you can start with research on platforms like Kununu or Glassdoor. Once you have found out what other employees in this company earn, determine your individual market value. No worries if you do not find information on one particular employer right away. Look up individual salaries for your profession, e.g. from competitors in the same industry, and then research salaries in that particular location and industry in which you are interested. 

Salary expectations: How to calculate your salary

  • Company size - Salaries in start-ups are usually lower than what you can expect when you work for a large company. On the other hand, you may be able to take on a lot of responsibility earlier and have more flexibility in how you organize your work.

  • Location - For instance income in Berlin is generally lower than in Munich. But in Munich you also need more income because the cost of living is higher than in Berlin. 

  • Your qualifications

  • Your practical experience

Here are some numbers that will give you a first idea of salaries in Germany. All the data is displayed as yearly gross salary*:

Average income by field of study for master graduates: 

  • Industrial engineering: 52.832 €

  • Data science: 50.978 €

  • Engineering: 50.774 €

  • Business and economics: 46.931 €

  • Natural sciences: 43.745 €

Average income of graduates in Germany:

  • General: 45.395 € 

  • Bachelor: 42.169 €

  • Master: 47.370 €

  • PhD: 56.260 €

At the end of this article, you will also find a list of links that will help you with your research on salary levels for your individual profile. 

Do I have to include my salary expectations in my job application?

If it says so in the job ad, then you have to include a salary range. If it is not specified, then it is also not mandatory to include it. However, if you already have a very clear idea of your future salary, it is a good idea to set clear expectations and include a number right away. You can integrate this information in the last paragraph of your cover letter. If you want to learn more about cover letters, check out our full article on how to write the perfect cover letter.

In case you decide not to include your salary expectations in your application: Be prepared to be confronted with this question at the latest in the interview. At this point you should be done with your research, have a clear salary expectation and be able to justify it. 

What if I ask for too much or too little money? 

First of all: It’s normal to negotiate your salary in Germany. So don’t be too scared of writing down a wrong number here. What matters is that you show that you have done some research and have a clear understanding of what your market value is and what you need to cover your cost of living. 

Don’t sell yourself under value. Too little expectations may leave an impression that you are desperate to go for any job. Similarly, too high expectations could also leave a wrong impression, particularly if you apply for a job in a start-up with a limited budget. The salary you ask for should be in line with your profile and the average salary range on the market and you can still indicate that you are open to negotiate. 

Also keep in mind that you need a minimum income for certain types of visa! 

Current minimum gross annual income for Non-EU citizens holding an academic degree: 

  • Blue card: 45.300 € annual gross salary / 3.775 € monthly gross salary (as of January 2024) 

  • Blue card for graduates and professionals in shortage professions: 41.041,80 € annual gross salary / 3.420 € monthly gross salary (as of January 2024) 

Run our visa quick check or take a look at our overview of German work visa and residence permit requirements to figure out if you meet the requirements.

How much money will be deducted from my salary? 

You can use this calculator to get a general idea and watch our video on how to calculate salary in Germany.

How to negotiate my salary?

  • Important: Income is negotiated as the employee’s yearly gross income: Don’t forget to include tax and social security deductions in your calculation. You can use an online salary calculator for this.

  • Be well prepared: Do research on your market value and come up with a good storyline: What added value will you bring to the company?

  • Be flexible but act determined: Your salary negotiations will not go well if you reject every proposal or give in too easily. Take time to review offers and come up with a suggestion. 

  • Agree on a lower starting salary and set a date or milestone at which you will receive a salary increase e.g. once the trial period of the first six months is over. This will give you the chance to prove that you are a good hire.

  • Negotiate a variable salary or additional benefits e.g. a performance-based bonus, yearly training budget, mobility allowance, additional vacation days, ... 

  • If you have to relocate: Ask your employer for a relocation allowance. Relocation allowances are usually tax deductible for employers in Germany and therefore a win-win for both parties. 

Helpful links 

Unfortunately mostly only available in German:

*Source of data: Stepstone Gehaltsreport 2020 https://www.stepstone.de/wissen/einstiegsgehalt/

Do you need help with negotiating your salary? Book a career coaching!

See this content in the original post