Competitiveness France/Germany
In partnership with Eurorekruter , we have conducted a comparative study of salaries in France and Germany
Are you looking for information to negotiate your salary?
Are you looking for information on how to negotiate your salary when relocating to Germany? Do you want to know what the gross salary in Germany is in relation to your current salary level in France?
As an employer, do you want to inquire about the costs or the salary level for a specific position in Germany?
Here you will get an overview of remuneration levels and find out how the salaries of French and German employees compare.
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Do you have a job opening in Germany? Or are you simply curious about this topic? Contact us to order your customized salary survey.
How expensive are social security contributions in France and Germany?
Social security contributions (pension insurance, health insurance, unemployment insurance, etc.) for the employer and the employee are identical in both countries.
In Germany, as in France, the employee pays a percentage amounting to approximately 20% of their salary. The French employer, on the other hand, has to pay significantly higher social security contributions (up to 45%) than the employee from a gross salary of approximately 30,000€ per year.
A job with the same gross salary is therefore much more expensive for the employer in France than in Germany. Thus, a French employer can more easily afford to increase the gross salary for a position in Germany, without it actually costing him more, since they save on social charges.
« The gross salary in Germany can therefore be about 10 to 20% higher than in France, in order to reach an equivalent net salary. »
What are the differences between income tax in France and Germany?
The amount of tax to be paid in both countries highly depends on the salary level. Nevertheless, family status (marriage, children, church membership in Germany, region, etc.) also has a significant influence on the applied tax rate.
Income tax deductions are generally much higher in Germany in comparison to France. Thus, an employee in Germany receives a much lower net salary for the same gross salary, compared with what the same person would receive in France.
Golden rule for wage equivalence in France and Germany
The income tax of a German-based employee is higher than in France. However, the social charges of the employee are similar in both countries.
During salary negotiations, the gross salary that is requested in Germany can therefore be about 10 to 20% higher than in France, in order to reach an equivalent net salary.
If you need concrete examples of calculations for different gross salaries, or a detailed comparative study regarding social charge deductions in Germany and France, please reach out to us. We will gladly help you.