Study compares incomes of foreign workers
The study is based on data from the Federal Employment Agency as of December 31, 2024. The average gross wage (the so-called median wage) was taken into account. This indicates the income that lies exactly in the middle when all salaries are sorted by amount. The value is considered particularly meaningful because it is not distorted by individual very high or very low incomes.
At the end of 2024, the average gross monthly income for all full-time employees was around €4,013. German employees were slightly above average at €4,177. Foreign workers had a slightly lower median wage of €3,204. However, these figures mask very large differences between the individual countries of origin.
Large differences in income according to country of origin
The differences in average wages depending on nationality are particularly striking. Some groups earn very high incomes, while others earn significantly less.
The groups with particularly high median wages include employees from the following countries:
- India (5,393 euros)
- Austria (5,322 euros)
- United States (5,307 euros)
- Ireland and the UK (€5,233)
- Norway, Denmark, Sweden, Finland, and Iceland (5,114 euros)
- China (4,888 euros)
- Switzerland and Liechtenstein (4,809 euros)
- Belgium, the Netherlands, and Luxembourg (4,662)
- Brazil (4,653 euros)
- France and Monaco (€4,605)
- Germany (4,177 euros)
The median wages of these groups are in some casessignificantly above the German average. In contrast, there are groups of origin with comparatively low median wages, including:
- Bulgaria (2,681 euros)
- Romania (€2,762)
- Syria (2,750 euros)
Qualifications and place of residence determine income
A key reason for the high income of many foreign workers is that many of them work in academic STEM professions. These include jobs in the fields of science, technology, engineering, and mathematics. These professions are in high demand and are correspondingly well paid.
A particularly high number of employees in academic STEM professions can be found among full-time employees aged 25 to 44 from the following countries:
- India: around 30.7 percent
- China: approximately 24 percent
- Brazil: around 20.8 percent
- Russia: approximately 18.9 percent
- Iran: around 17.3 percent
- France: approximately 16.2 percent
- USA: around 15.3 percent
- UK and Ireland: around 14.9 percent
- North Africa: approximately 14.8 percent
By way of comparison, only around 7.6 percent of all full-time employees in Germany work in academic STEM professions. The proportion of foreign employees is 7.3 percent – but significantly higher for certain groups of origin.
In addition to qualifications, the place of work also plays an important role. Many highly qualified foreign professionals work in economically strong cities with higher wage levels. This also contributes to certain groups earning above-average incomes.
Many skilled workers come to Germany to study
Studying is an important route into the German labor market for foreign skilled workers. The number of international students has risen significantly in recent years, particularly from non-EU countries. Many of them successfully complete their studies and then remain in Germany.
For your information: International students receive a residence permit for the purpose of studying in Germany (§ 16b AufenthG). It is valid for the duration of their studies. Requirements include admission to a recognized university, a secure source of income, and health insurance. Limited employment is permitted alongside studies.
After completing your studies, the Residence permit can be converted Residence permit a residence permit for job seekers (Section 20 of the Residence Act) or into a Residence permit gainful employment, for example as a skilled worker (Section 18b of the Residence Act) or as an EU Blue Card holder (Section 18g of the Residence Act).
Students from India in particular show a strong intention to stay. Their numbers have risen sharply since 2014. Many successfully complete their studies and then enter the German labor market. Around two-thirds say they want to stay in Germany long term. A large proportion of them find employment in skilled and well-paid professions, often in the STEM sector.
Lower wages for a high proportion of simple tasks
In contrast, a large proportion of foreign workers are employed in unskilled jobs, i.e., simple tasks that do not require formal vocational or higher education. In these groups, the proportion of unskilled jobs is as high as 50 percent in some cases.
At the same time, the data shows that the wages of many foreign workers have risen significantly in recent years. In some years, wage increases were even higher than those of German workers.
Conclusion: Skilled immigration remains important
Due to demographic change and a shortage of skilled workers, qualified immigration is becoming increasingly important for Germany. Since 2012, the federal government has been specifically recruiting skilled workers from third countries, especially for academic STEM professions and the care sector. While the number of German employees has risen only slowly since then, the employment of foreign workers has increased significantly.
According to the German Economic Institute (IW), the study shows how important foreign skilled workers have become for the German labor market. In order to make even better use of their potential in the future, targeted recruitment is needed, but above all faster administrative procedures and more support in the transition from university to work.
