How much do you need to earn to be considered “wealthy” in Germany? It’s actually less than you might think. According to a new income analysis by the German Economic Institute (IW), a single person who earns a salary of more than 3.700 euros net per month is part of the highest-earning 10 percent in the country.
Shining the spotlight on Germany’s wealthiest
Once again, the German Economic Institute (IW) in Cologne has examined income data from previous years to determine how much somebody needs to earn to belong to the top 50 percent, 10 percent, 5 percent and 1 percent of all earners in Germany.
The figures are compiled using data from the so-called “Socio-Economic Panel” (SOEP), a regular survey of around 19.000 households and 35.000 people in Germany about income, jobs and salary developments. The most recent figures date from 2018.
Do you earn 3.700 euros net per month?
According to this, in 2018 a single wage earner fell among the top 10 percent of earners in Germany if they had a net monthly income of more than 3.700 euros. Two years earlier, based on data from 2016, the cut-off was 3.440 euros.
In 2018, anyone with a net monthly income of 4.560 euros or more was part of the top 5 percent. To reach the top 1 percent of earners, you would need a monthly take-home salary of 7.190 euros. This is equivalent to an annual net income of almost 86.000 euros, after taxes, or an annual gross salary of around 150.000 euros.
Work out where your salary puts you
Of course, this figure is a big simplification, since relative wealth depends on a myriad of factors, including things like your employment status, your age, your location, your family, your gender, and your education, to name a few.
For instance, you’re statistically more likely to be wealthy if you have a partner but no children and are not yet retired. Each partner in a childless couple needs to earn just 3.050 euros to belong to the richer half of the population, whereas a couple with two children under the age of 14 would need to earn more than 4.260 euros each.
For this reason, the IW has created a graphic to show not only the income distribution for the entire population of Germany, but also a total of 31 subgroups that differ in terms of employment status, education, gender, place of residence, age and living situation.
Using the calculator below, you can work out your position within society as a whole, and also within your own subgroup. Just fill in your household’s net monthly income, the number of people aged 14 and over, the number of people aged under 14, and toggle your comparison group preferences below.
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FAQs
How much do you need to earn to be considered “wealthy” in Germany? It's actually less than you might think. According to a new income analysis by the German Economic Institute (IW), a single person who earns a salary of more than 3.700 euros net per month is part of the highest-earning 10 percent in the country.
What is the salary of top 10% in Germany? ›
What is the top 10 income in Germany? According to the Institute for German Economy (IW), a single person earning 3,700 euros per month after taxes qualifies as being in the top 10 percent of earners in Germany, indicating a substantial income level compared to the rest of the population.
What wealth do you need to be in the top 10 percent? ›
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
What is the top 10 percentile income in Germany? ›
Data published by the Institute for German Economy found that any single person earning 3.700 euros per month after taxes is considered part of Germany's rich, in the top 10 percent of earners. For a couple without children, earning a combined net salary of 5.550 euros will place them in the top 10 percent.
Am I in the 10 percent? ›
A 2022 study by the Economic Policy Institute (EPI) found that the top 10% of earners nationally received an average income of $167,639 in 2021.
What percent of Germany is wealthy? ›
One way in which this can be seen is in the share of total net wealth belonging to the wealthiest 10% of households in Germany. This encompasses households whose net wealth totalled at least €725,900 in 2021. In 2021, this group possessed around 56% of total net wealth in Germany (2017: 55%).
Is 120K a year a good salary? ›
Your income puts you in the upper half of American earners, well above the median household income of $74,580, per Census data.
Is 70K a good salary? ›
We've identified 10 cities where the typical salary for a 70K A Year job is above the national average. Topping the list is San Buenaventura, CA, with Santa Clara, CA and Washington, DC close behind in the second and third positions.
Is 75k a good salary in Germany? ›
It was around €51,009 in 2022, and more recent studies suggest that a good salary now is likely between €71,000 and €75,000.
What puts you in the top 10%? ›
The top 10% of earners make just shy of $350,000 a year, the highest amount on the list. The median household income also is significant and stands No. 3 in the study.
So let's talk about what we mean by 'top 10%' or 'access to wealth'
- Your family's net wealth is $1 million or more.
- Your parent's annual income is in the top 90th percentile for your state. ...
- You or your family members have a family foundation.
In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.
Is Germany high or low income? ›
Economy of Germany
| Country group | Developed/Advanced High-income economy Largest European economy |
| Statistics |
|---|
| Population | 84,270,625 (2022) |
| GDP | $5.011 trillion (nominal; 2024) $5.686 trillion (PPP; 2024) |
| GDP rank | 3rd (nominal; 2023) 5th (PPP; 2023) |
38 more rowsBreaking it down a little, supposing you are alone, single, no kid and around 30 years young: for 120K a year in Berlin in 2019 with a tax class 1 and with no contribution to the church, you should have around 5.693,59 € per month on that salary (health insurance and taxes are already paid).
What income level is Germany? ›
In Germany, the average household net-adjusted disposable income per capita is USD 38 971 a year, more than the OECD average of USD 30 490 a year.
How much to be considered rich in Germany? ›
What is considered rich in Germany? In Germany, a net worth of around €500,000 ($530,000) or more is generally considered financially independent or rich. This means assets that generate at least €20,000 per year of passive income.
What percent of Germany is upper class? ›
The high-income group is usually smallest, but varies most strongly in size: it makes up 7% of the population in Germany, and 8% in the OECD on average. In some OECD countries, the high-income group makes up only a few percent of the population, while it reaches 14% or more in Mexico, Chile, and the United States.
Which part of Germany is more rich? ›
Germany became a federation of 16 states after the unification of the two sides. While the state of North Rhine-Westphalia is Germany's richest state by Gross Domestic Product (GDP), Hamburg leads regarding GDP per capita.
What is the average wealth of a German citizen? ›
In 2022 the median and mean wealth per adult in Germany was 256.180 USD, a decrease of 14.360 USD from 2021 figures, making the federal republic the 16th wealthiest country in the world.
