Munich salaries vs. cost of living

the position i am offered is funded by a private organization. so i think that is the reason why it is a little bit more than regular postdoc rates.

Which city in the US is your other offer? The quality of life and social life here is pretty good. Even if you do not save as much, the European experience itself is definitely worth it. Good Luck.

the other offer is in SF.
i have some considerations about moving to munich. every german that i know who is not from bavaria has been telling me that living in munich is like living in texas and bavaria is very conservative. is that true?

thanks

No, we don't have Miller Lite here, or *that* many rednecks.

come on, we texans prefer shiner bock.
yes, bavaria is the texas of the united states, but munich is the austin of the Isar valley.

Texas is hot, munich is not. Texas is flat, Bavaria is not. The differences are so many I dont even know where to start. I don't know exactly what your definition of conservative is but to me people around here are pretty open-minded about most things we encounter on a daily basis. Perhaps texans living here have few more things to say.

postdoc: Bavaria is conservative, no doubt about that. Munich is a high-tech/media/international/college town, and more liberal. It is not at all as liberal as SF, but it's not as conservative as you may fear, either. The social benefits in Munich should be considered as roots pointed out. Munich is clean, safe, great alternative transportation, fantastic outdoor activities, athletic, central hub to europe, etc. If you have a chance to visit and scope the place out, do so.

If I had my druthers, I'd go to SF, but then I've been here a few years and wouldn't have passed this opportunity either.

@ elfenstar

That sums it up perfectly...

Need all of your advice here. Hope all of you ladies and gentleman provide some information.

Introduction :-

I am a qualified Accountant in Malaysia and now attached with one MSC company as an senior executive. I have been working for 8 years in Account, Audit, Tax, Costing etc..

Issues :-

One SAP consulting company would like to offer me the job based in Munich. I am really no idea what is the salary rate in Munich. This is because this is my first offer as an consultant (in charged for Account and Costing).

Besides, really need you to advice about tax structure (any internet link), insurance, cost of living, place to stay, ...

Thanks in advance

Rao

Hi,

I've been reading the forum with interest for the past couple of week, but now its finally my turn to ask for some advice.

My wife has been offered a job of around €45,000 Gross Salary plus relocating costs for one of Munich's multi-nationals. If we decide to move I will need to leave my job and try to find work in Munich. Its also a commitment for at least 2 years or we will have to pay back various costs to the company.

At the moment our combined income in the UK is £45,000 and our accommodation cost are very minimal as we own a small flat outright.

So, what to do think? Will it be difficult for me to find work (I have qualifications in Landscape Architecture and Marketing but would be willing to do just about anything as long as its not slave labour?

Thanks for your advice.

A 'scraper! Probably help if you could speak German a bit, but try this lot here. By the way are you a member of the Landscape Institute in London? If so they might be able to give some practical advice

Bund Deutscher LandschaftsArchitekten e.V.
Koepenicker Straße 48/49
10179 Berlin
GERMANY

T:+49(0)30-27 87 15 -0
F:+49(0)30-27 87 15 55
E: BDLA-Bgst@t-online.de
W: http://www.bdla.de/

Hi,

I've been living and working in Salzburg- Austria since June 2005.

I have an offer from a company in Munich. (Will be meeting up with the company on the 17th Feb 06)

I wanted to know what would be the right salary to negotiate. I am in the 'New Media- Online Marketing' industry.

To talk about Salzburg, the cost of living is quite low and the lifestyle is quite comfortable, Having seen Vienna and London.

I would appreciate if anyone can give me information about the minimum salary (per annum) that is required to life a comfortable life in Munich.

P.S: I smoke, madly in love with Alcohol, hit the gym 3 times a week and need the Internet.

At the moment, my take home is 25.146,00 Euro per annum.

Any help will be appreciated.

Thanks.

Topics merged by admin

TT search for "cost of living"

i'm sure you've searched the forum for such specifics?

no seriously, have you? is your job, IT-specific? you probably will not find exactly what you want, but you'll get a good idea of where to start so you can make a better estimate of what you'll need. is your per annum salary what you actually take home?!! if that's before tax, then €25k a year is low for munich.

you're young, single, so you won't need a huge apartmen, unless you want it. based on what i pay for a munich apartment (i live pretty central), you'll pay €10-12 a square meter w/o heat.

Reading these posts you'd think Germany was high tax hell, it depends, if your single, earning a good wage you'll pay 45 to 50 percent. If you have dependants it will be closer to 28% up to 80.000€ per year, above that it may go to 40%. A friend who is in the same situation as us, I wage earner 1 dependant and he pays 40%. I haven't asked him what he earns but it must be quite a bit higher as Chris only pays 28%. Unfortuanatly now per diems and transport after 3 months are taxable at 40%

Huh? Why?

exactly, what is that about? per diem are now taxable? says who?

p.s., i'm single, earn a decent salary, and 43% goes to the man.

Well I'm assuming take home means after tax - so that a little over 2000 per month. You should be fine on that, particularly if you don't require a huge place to live in and if you don't intend to have a car here. Rent+utilities probably between 600-1100 - the rest you can spend on whatever takes your fancy. You'll be by no means super rich but should be able to live comfortably

Concerning THM's post: I don't think per diems and transport are taxable / non-deductible. There is some talk about reducing the deductibility of transport (i.e. the Entfernungspauschale), but so far I don't think anything major has been changed. Unless somebody is more up-to-date and can explain?

P.S. Checked the official leaflet "Lohnsteuer 2006", and it states that transport costs are deductible at 30 cents per kilometre of distance for every day you go to work.

I think a good salary ought to be atleast 3000 a month after tax. That permits you to have a reasonably good life. You can ask your employer how much your 52K amounts to after taxes.

Hi,

Thanks for the information. Sorry for the confusion. I did read a couple of posts but couldn't find the correct answer.

I'm into Online Advertising, not IT. Wanted to know how much salary is required to negotiate with the employer for a good standard of living.

Thanks.

yes, agreed. man, he must live like a king in salzburg.

you would think we're all rich yuppies in munich

I'm not sure what your definition of a 'reasonably good life' is, but as a single person with no kids, 3000 per month should give you considerably more than a 'reasonable life' in Munich

important note on taxes,if your single no dependants than you looking at a total bite out of your pay cheque at 45 to 50 percent, if you have dependants kids, non working spouse, dog? You looking at 28% total or in other words plan on about 70% of your gross. If you earing a really good wage that might jump to 40% or 60% of the gross in your hand. but most people 28% is about right.

Of course that doesn't take into account all the hidden taxes you pay.

I understand that plasterers are particularly well paid in Munich.

maurizio
are you going to work for Amadeus in Erding?

This the first site i ran into when I googled for german salaries. My employer's given an option to move to Munich and I just finished readin my contract. They offered a compenstion of €41 400, and I just dont know if its appropriate. I am a bachelors guy with two years of experience in the semiconductor field. Any takes on this? Bogs me for now.

Many thanks in advance,
Kev

Is that net or gross?

Thats pretty good for only 2 years experience.

kev to topsy:
Dats the gross. €3450/- per month. Plus relocation ofcourse, including estate agents fee. The problem is that (or is it?) its munich, which I heard is rather expensive. I still have time to respond to the offer.

kev to kza:
you really think so? thanks. m just trying to get as many opinions. I know about the tax bracket and I reckon I would be in the highest one ( not married, no kids ). I had one question though. They talked about insurance and I cudnt quite get it if its part of the tax I would be paying or that would be extra. How much? 150? 200?

thanks.

boomtown to kev:


I guess you mean health insurance. You can either opt to go with the state system which probably around 250 will be deducted from your pay before you see it. You can also go private and thus pay from your net salary but the cost will be about the same I think

Net you should end up with perhaps 2100 (if you opt for state insurance). Not a life of luxury but certainly plenty enough to have a decent flat and a decent life. Ok for Bach + 2years experience I would say

Dont think you can go private unless you earn more than 45

possibly true, I don't know

Heh I like this "kev to topsy", "boomtown to kev" stuff. Just like on the RT in the ute back on the farm. Wonder if it will catch on.

PES to Kza
Reminds me of a Bowie song! I like it too.

kev to boomtown:
Well I've been getting the same reviews from some other folks. They say its 'ok' and not likely bordering on 'good' or 'great'. I have to try and see if it can be pushed though.

2100 sounds rather good to me though. Considering worst case, I actually took a straight 50% of my gross.

Kev to Kza:
it just did :-> .
you said its the sals pretty good. More insights? Do put it across.

How does the HR work? I dont know if negotiations are a norm or are they resented? I also heard that its possible to get some more space from the taxman if I declare that I have dependant parents not living in germany. Is that true?

I touched quite a lot of topics. Do take all the time but do reply to each. I owe you a good lunch then.

You might want to check though if your salary is in 13 installments rather than 12. And you will have to take state health insurance as well.

Its 13 months. That I confirmed. Whats your opinion considering this?


you mean other than the health insurance boomtown talked about?

boom to kev:

I think he is talking about the same insurance

ok so its a 13 month split which means your salary will be about 3200 gross and maybe 1900 net, with double payment in November or December. Still ok I think

Regarding HR, do you mean in future rounds of pay negotiations? I'm no expert, but I wouldn't expect the same annual raises here as in the US

That means you will earn around 1300 net per month and double that in December. But consider that if you plan on doing this for a short time, you can petition to receive your pension funds back in a lump sum when you return to the US. I think it used to be under five years, but it was reduced a few years ago to under three (not certain)

boom to broken:

nah, more like 1900 I reckon, perhaps 1800 I suppose

edit:wrong info

boom to broken:

41400-43000 pretty much the same thing? It will deffo be more than 1300 net

kev to boomtown:
good to know. Some solace may be. I only wanna make sure the deal was not a rip-off for them.

Negotiations in HR meaning now. Before I accept their offer. Is this ok?

You are correct, for some reason I thought that it was 34000 gross. He should expect around 1700-1800 and a bit more if he decides he does not have a church.

What I meant was you won't have the option of private health insurance which is cheaper, so you must factor that in to the net pay. I also reckon you will have about 1800 take home pay at the end of the month.
That's a fine amount these days. Salaries aren't what they used tobe a few years ago.

Riggers to boomer and brokenm:

He'll definitely be taking home more than 1300.

1800 sounds about right.

just wanted to try out the new format of addressing people

You have to be careful in Germany when comparing monthly salaries since although most firms pay at least 13 instalments, some pay 14 and some pay 12. So when you're negotiating a salary, always negotiate an annual salary. Expect to lose about 40% of it to tax and social benefits. You can save money on health by going for BKK (Betriebskasse) rather than AOK (Algemeine Ortskasse) who tend to be more expensive because their customer profile tends to have more older people. You get exactly the same benefits from both since they are determined by the government. To qualify for private healthcare you need to earn ar least EUR 47,400 gross a year. Private healthcare really only makes sense for young, single top earners though. If you have a bachelors and 2 years' experience, EUR 40,000 gross is too little. I would push for EUR 45,000 at least.

boom to kev:

Maybe it varies from company to company but I don't think negotiating at the beginning of a contract is resented. If you think you can back it up with valid arguments then feel free to try and up it a bit or get other fringe benefits like extra holiday (I guess relocation costs that you get is not bad). I really don't know the semiconducter branch so can't say if its a 'fair' salary or not. I just know that the salary you get will give you a decent life in Munich although no luxury jet setting existence and not that much room for saving money