When discussing differences in living standards between France and Germany, a common belief is that “Germans are better paid.” However, to truly compare the two countries, one must consider a range of factors. First of all, it’s important to note that in France, collective agreements set many rules at the industry level. In Germany, on the other hand, working conditions are often negotiated directly within each company—a major initial difference. Legal working hours also highlight a key divergence. In France, a full-time contract means 35 hours per week, compared to an average of 38.5 hours in Germany. Regarding vacation, French law guarantees a minimum of 25 working days per year. In Germany, the legal minimum is 20 days, but in practice, employees often receive 25 to 30 days, depending on internal company agreements. These differences naturally affect salary comparisons and purchasing power.
- Average Salaries: Where Do We Stand?
In 2025, the average gross salary in the French private sector is €3,613 per month, or €43,356 per year. In Germany, this figure reaches around €50,200, with significant variations depending on region, industry, and experience.
In terms of net salaries, the gap also favors Germany. On average, a German employee earns around €3,000 net per month, compared to €2,735 in France. This is partly due to slightly lower social contributions in Germany and a different tax structure.
Gender pay gaps remain an issue in both countries, despite some progress. In France, the wage gap in the private sector has decreased from 22% in 1995 to 14% in 2023—a positive trend, though still insufficient. Among executives, Apec reports a narrower gap of 7% for the same role, rising to 11% after age 55.
In Germany, the situation is more concerning, with an average gender pay gap of 18% across all professions.
Salary differences also vary greatly by sector. In industry, for example, Germany has a clear lead. Engineers and technical profiles often receive annual salaries several thousand euros higher than in France. - Salary Trends: What Are the Patterns?
In France, salaries increased moderately between late 2023 and early 2025, with an average rise of around 2.1%, barely above inflation. This slow growth is due to economic uncertainty and less dynamic collective bargaining in some sectors. In Germany, the trend is more pronounced. Salaries rose by 5.1% over the same period, driven by a shortage of qualified labor, strong industry-level negotiations, and pressure in strategic sectors.
Regarding minimum wages, Germany also has a slight edge. As of January 1, 2025, the Mindestlohn (minimum wage) is set at €12.82 gross per hour, or around €2,140 gross per month for a 38.5-hour workweek. In France, the SMIC (minimum wage) is €11.88 gross per hour, equaling about €1,802 gross per month for a 35-hour week. - Social Charges and Labor Costs
Social contributions are key to understanding gross and net salaries. In Germany, they are evenly split between employer and employee—each contributes about 20% of the gross salary. In France, the employee pays around 20–22%, while the employer must pay significantly more—up to 45% for salaries over €30,000 per year.
Income tax further affects take-home pay. Germany has a more progressive tax system, which is often higher, especially for middle to high incomes. Additionally, once an employee surpasses a certain income threshold, they may be required to subscribe to private health insurance, which is often more expensive than France’s public system plus mutual insurance.
For companies, the difference in employer contributions is crucial. For the same gross salary, hiring an employee in France is significantly more expensive than in Germany. This limits the ability of French employers to offer raises, whereas German companies have more flexibility. - Purchasing Power
In France, the cost of living varies greatly by region. Housing is particularly expensive in large cities like Paris but remains more affordable in many mid-sized towns.
In Germany, rent is slightly lower on average, especially in eastern regions. However, in major cities like Munich or Frankfurt, housing is significantly more expensive.
For everyday expenses, prices are generally comparable between the two countries. Overall, the cost of living in Germany is only slightly higher than in France.
Conclusion
In Germany, gross and net salaries are on average higher and growing faster, resulting in slightly greater purchasing power. In France, salaries are slightly lower, but the legal workweek is shorter and vacation days more numerous.
Gender pay gaps persist in both countries.
