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Software Engineer Average Salary in Germany 2020

How much money does a Software Engineer make in Germany?


Average Monthly Salary
3,410 EUR
( 40,900 EUR yearly)

LOW
1,570
EUR
AVERAGE
3,410
EUR
HIGH
5,420
EUR

A person working as a Software Engineer in Germany typically earns around 3,410 EUR per month. Salaries range from 1,570 EUR (lowest) to 5,420 EUR (highest).

This is the average monthly salary including housing, transport, and other benefits. Software Engineer salaries vary drastically based on experience, skills, gender, or location. Below you will find a detailed breakdown based on many different criteria.

Software Engineer Salary Distribution in Germany

Median and salary distribution monthly Germany Software Engineer
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The median, the maximum, the minimum, and the range

  • Salary Range

    Software Engineer salaries in Germany range from 1,570 EUR per month (minimum salary) to 5,420 EUR per month (maximum salary).

  • Median Salary

    The median salary is 3,680 EUR per month, which means that half (50%) of people working as Software Engineer(s) are earning less than 3,680 EUR while the other half are earning more than 3,680 EUR. The median represents the middle salary value. Generally speaking, you would want to be on the right side of the graph with the group earning more than the median salary.

  • Percentiles

    Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of Software Engineer(s) are earning less than 2,360 EUR while 75% of them are earning more than 2,360 EUR. Also from the diagram, 75% of Software Engineer(s) are earning less than 4,920 EUR while 25% are earning more than 4,920 EUR.


What is the difference between the median and the average salary?

Both are indicators. If your salary is higher than both of the average and the median then you are doing very well. If your salary is lower than both, then many people are earning more than you and there is plenty of room for improvement. If your wage is between the average and the median, then things can be a bit complicated. We wrote a guide to explain all about the different scenarios. How to compare your salary

Software Engineer Salary Comparison by Years of Experience

How does experience and age affect your pay?

Salary comparison by years of experience monthly Germany Software Engineer
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The experience level is the most important factor in determining the salary. Naturally the more years of experience the higher your wage. We broke down Software Engineer salaries by experience level and this is what we found.

A Software Engineer with less than two years of experience makes approximately 1,780 EUR per month.

While someone with an experience level between two and five years is expected to earn 2,380 EUR per month, 34% more than someone with less than two year's experience.

Moving forward, an experience level between five and ten years lands a salary of 3,510 EUR per month, 48% more than someone with two to five years of experience.

On average, a person's salary doubles their starting salary by the time they cross the 10 years* experience mark.
* Based on the average change in salary over time. Salary variations differ from person to person.

Additionally, Software Engineer(s) whose expertise span anywhere between ten and fifteen years get a salary equivalent to 4,280 EUR per month, 22% more than someone with five to ten years of experience.

If the experience level is between fifteen and twenty years, then the expected wage is 4,670 EUR per month, 9% more than someone with ten to fifteen years of experience.

Lastly, employees with more than twenty years of professional experience get a salary of 5,060 EUR per month, 8% more than people with fifteen to twenty years of experience.


Software Engineer average salary change by experience in Germany

0 - 2 Years
1,780 EUR
2 - 5 Years+34%
2,380 EUR
5 - 10 Years+48%
3,510 EUR
10 - 15 Years+22%
4,280 EUR
15 - 20 Years+9%
4,670 EUR
20+ Years+8%
5,060 EUR
Percentage increase and decrease are relative to the previous value

Typical Salary Progress for Most Careers

Salary Comparison By Experience Level
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Software Engineer Salary Comparison By Education

How do education levels affect salaries?

Displayed below is the average salary difference between different Software Engineer(s) who have the same experience but different education levels.

Salary comparison by education level monthly Germany Software Engineer
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We all know that higher education equals a bigger salary, but how much more money can a degree add to your income? We broke down Software Engineer salaries by education level in order to make a comparison.

When the education level is Certificate or Diploma, the average salary of a Software Engineer is 2,030 EUR per month.

While someone with a Bachelor's Degree gets a salary of 3,190 EUR per month, 57% more than someone having a Certificate or Diploma degree.

A Master's Degree gets its holder an average salary of 5,340 EUR per month, 68% more than someone with a Bachelor's Degree.


Software Engineer average salary difference by education level in Germany

Certificate or Diploma
2,030 EUR
Bachelor's Degree+57%
3,190 EUR
Master's Degree+68%
5,340 EUR
Percentage increase and decrease are relative to the previous value

Is a Master's degree or an MBA worth it? Should you pursue higher education?

A Master's degree program or any post-graduate program in Germany costs anywhere from 19,100 Euro(s) to 57,200 Euro(s) and lasts approximately two years. That is quite an investment.

You can't really expect any salary increases during the study period, assuming you already have a job. In most cases, a salary review is conducted once education is completed and the degree has been attained.

Many people pursue higher education as a tactic to switch into a higher paying job. The numbers seem to support the thoery. The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment.

If you can afford the costs of higher education, the return on investment is definitely worth it. You should be able to recover the costs in roughly a year or so.


Typical Salary Difference by Education for Most Careers

Salary Comparison By Education Level
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Software Engineer Salary Comparison By Gender

Salary comparison by gender monthly Germany Software Engineer
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Though gender should not have an effect on pay, in reality, it does. So who gets paid more: men or women? Male Software Engineer employees in Germany earn 7% more than their female counterparts on average.

Female
3,290 EUR
Male+7%
3,530 EUR
Percentage increase and decrease are relative to the previous value

Salary Comparison By Gender in Germany for all Careers

Salary comparison by gender monthly Germany
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Software Engineer Average Annual Salary Increment Percentage in Germany

How much are annual salary increments in Germany for Software Engineer(s)? How often do employees get salary raises?

Software Engineer

Software Engineer(s) in Germany are likely to observe a salary increase of approximately 12% every 16 months. The national average annual increment for all professions combined is 8% granted to employees every 16 months.

Annual Salary Increment Rate Germany Software Engineer
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The figures provided here are averages of numbers. Those figures should be taken as general guidelines. Salary increments will vary from person to person and depend on many factors, but your performance and contribution to the success of the organization remain the most important factors in determining how much and how often you will be granted a raise.

Germany / All Professions

The term 'Annual Salary Increase' usually refers to the increase in 12 calendar month period, but because it is rarely that people get their salaries reviewed exactly on the one year mark, it is more meaningful to know the frequency and the rate at the time of the increase.

How to calculate the salary increment percentage?

The annual salary Increase in a calendar year (12 months) can be easily calculated as follows: Annual Salary Increase = Increase Rate x 12 ÷ Increase Frequency

The average salary increase in one year (12 months) in Germany is 6%.

Annual Increment Rate By Industry 2019

Banking
9%
Energy
9%
Information Technology
9%
Healthcare
9%
Travel
9%
Construction
9%
Education
9%

Listed above are the average annual increase rates for each industry in Germany for the year 2019. Companies within thriving industries tend to provide higher and more frequent raises. Exceptions do exist, but generally speaking, the situation of any company is closely related to the economic situation in the country or region. These figures tend to change frequently.


Worldwide Salary Raises: All Countries and All Jobs

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Software Engineer Bonus and Incentive Rates in Germany

How much and how often are bonuses being awarded?Annual Salary Bonus Rate Germany Software Engineer
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A Software Engineer is considered to be a moderate bonus-based job due to the generally limited involvement in direct revenue generation, with exceptions of course. The people who get the highest bonuses are usually somehow involved in the revenue generation cycle.

39% of surveyed staff reported that they haven't received any bonuses or incentives in the previous year while 61% said that they received at least one form of monetary bonus.

Those who got bonuses reported rates ranging from 2% to 7% of their annual salary.

Received Bonus
61%
No Bonus
39%

Types of Bonuses Considered

Individual Performance-Based Bonuses

The most standard form of bonus where the employee is awarded based on their exceptional performance.

Company Performance Bonuses

Occasionally, some companies like to celebrate excess earnings and profits with their staff collectively in the form of bonuses that are granted to everyone. The amount of the bonus will probably be different from person to person depending on their role within the organization.

Goal-Based Bonuses

Granted upon achieving an important goal or milestone.

Holiday / End of Year Bonuses

These types of bonuses are given without a reason and usually resemble an appreciation token.

Bonuses Are Not Commissions!

People tend to confuse bonuses with commissions. A commission is a prefixed rate at which someone gets paid for items sold or deals completed while a bonus is in most cases arbitrary and unplanned.


What makes a position worthy of good bonuses and a high salary?

The main two types of jobs

Revenue GeneratorsSupporting Cast

Employees that are directly involved in generating revenue or profit for the organization. Their field of expertise usually matches the type of business.

Employees that support and facilitate the work of revenue generators. Their expertise is usually different from that of the core business operations.

Example:
A graphics designer working for a graphics designing company.

Example:
A graphic designer in the marketing department of a hospital.


Revenue generators usually get more and higher bonuses, higher salaries, and more frequent salary increments. The reason is quite simple: it is easier to quantify your value to the company in monetary terms when you participate in revenue generation.

Try to work for companies where your skills can generate revenue. We can't all generate revenue and that's perfectly fine.

Bonus Comparison by Seniority Level

Top management personnel and senior employees naturally exhibit higher bonus rates and frequencies than juniors. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. People in top positions can easily get double or triple bonus rates than employees down the pyramid.

Government vs Private Sector Salary Comparison

Public vs private sector salaries monthly Germany
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Where can you get paid more, working for a private company or for the government? Public sector employees in Germany earn 5% more than their private sector counterparts on average across all sectors.

Private Sector
3,730 EUR
Public Sector+5%
3,900 EUR
Percentage increase and decrease are relative to the previous value

Software Engineer Average Hourly Wage in Germany


20 EUR per hour

The average hourly wage (pay per hour) in Germany is 20 EUR. This means that the average Software Engineer in Germany earns approximately 20 EUR for every worked hour.


Hourly Wage = Annual Salary ÷ ( 52 x 5 x 8 )

The hourly wage is the salary paid in one worked hour. Usually jobs are classified into two categories: salaried jobs and hourly jobs. Salaried jobs pay a fix amount regardless of the hours worked. Hourly jobs pay per worked hour. To convert salary into hourly wage the above formula is used (assuming 5 working days in a week and 8 working hours per day which is the standard for most jobs). The hourly wage calculation may differ slightly depending on the worked hours per week and the annual vacation allowance. The figures mentioned above are good approximations and are considered to be the standard. One major difference between salaried employees and hourly paid employees is overtime eligibility. Salaried employees are usually exempt from overtime as opposed to hourly paid staff.

Software Engineer VS Other Jobs

Salary Comparison Between Software Engineer and Information Technology monthly Germany
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The average salary for Software Engineer is 14% less than that of Data Analysis. Also, Data Analysis salaries are 3% more than those of Information Technology.

Salary comparison with similar jobs

Job TitleAverage Salary
Business Intelligence Analyst3,780 EUR+11%
Business Systems Analyst3,130 EUR-8%
Data Quality Analyst3,440 EUR+1%
Director of Application Development5,320 EUR+56%
Disaster Recovery Analyst3,530 EUR+4%
Enterprise Infrastructure Architect4,700 EUR+38%
ERP Analyst3,820 EUR+12%
Functional Analyst3,670 EUR+8%
Information Technology Training Analyst3,650 EUR+7%
OPS Manager5,090 EUR+49%
Reporting Analyst3,310 EUR-3%
Salesforce Administrator3,250 EUR-5%
SOA Analyst3,340 EUR-2%
Software Analyst3,330 EUR-2%
Software Architect3,430 EUR+1%
Software Engineer3,410 EUR+0%
Solutions Architect4,930 EUR+45%
Systems Analyst3,600 EUR+6%
Systems Architect3,630 EUR+6%
Technical Analyst2,970 EUR-13%
Technology Business Analyst3,550 EUR+4%

Salary Comparison By City

CityAverage Salary
Berlin4,140 EUR
Bremen3,300 EUR
Dortmund3,540 EUR
Dresden3,120 EUR
Dusseldorf3,740 EUR
Essen3,470 EUR
Frankfurt3,640 EUR
Hamburg3,820 EUR
Hannover3,140 EUR
Koln3,960 EUR
Leipzig3,400 EUR
Munchen3,890 EUR
Nurnberg3,100 EUR
Stuttgart3,640 EUR
4748 - 60

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