What Is the Salary of Software Engineer in Germany?

Software engineers are needed all over the world, including technologically advanced Germany. The German economy is growing rapidly; more and more tech companies are launching every year while old and established businesses get digitalized. The country needs qualified software engineers so they can keep up with the progress. Before deciding to pursue your career in Germany, you need to know how much will you actually make over there?

The average salary of a software engineer in Germany is 56,000 EUR per year or 27 EUR per hour. Beginners earn from 40,000 EUR per year while very experienced workers get paid up to 100,000 EUR per year.

Software engineers are needed in almost all areas of the German economy, car manufacturers, insurance companies, banks, universities – every company needs an IT expert who can code. Sounds promising, but the salary is an essential factor while deciding where to move, so how much exactly should you expect in Germany as a software engineer?

How much will you earn as a software engineer in Germany?

Well, shortly, not a little. The salary of a software engineer in Germany depends on many factors and therefore ranges. The average pay is between 42,996 EUR and 72,118 EUR at 40 hours work week.

The starting salary of a software developer is initially between 32,000 EUR and 46,500 EUR. The income difference is related to the professional experience, the industry in which one works, and the level of responsibility in the company; also, the location is quite important.

  • the starting salary of a software engineer is 32,000 EUR to 46,500 EUR
  • with professional experience is between 47,000 EUR and 65,000 EUR
  • a senior software engineer can expect between 65,000 EUR and 100,000 EUR.

Not all numbers are equal. Germany is a big country with significant regional differences. Let’s look closer at what can affect your monthly pay-check.

Important factors for your salary in Germany as a software engineer

Your degree: bachelor, master, certificates?

Not only is your degree important for determining a salary in Germany but also the further training/education. Especially for IT specialists, it’s essential to educate and progress all the time; technology and trends are constantly changing.

Technology never stands still; hence, further training is an integral part of the IT specialist’s career. You should always be open and willing to learn new things in your area of expertise.

A bachelor’s degree is a requirement for software engineers in Germany, but a master’s will increase your salary and responsibilities.

Applicants with a master’s degree earn on average 5,000 EUR more than one with a bachelor’s (annually).

Which university course is the best for getting a job after the university in Germany? Read in this article!

Size of the company

Two other important factors that influence the salary development of a software developer are the company’s size and the company’s location. As a rule, you can say: the bigger a company is, the better the salary opportunities.

Salary expectations: when working in companies up to 500 employees – 44,028 EUR; between 501 and 1,000 employees – 49,740 EUR; from 1k employees – 58,080 EUR.

Location

The location also plays a big role in your salary in Germany. According to Gehalt.de best-paid regions are Baden-Württemberg (52,140 EUR), Bavaria (50,328 EUR), followed by Berlin (46,332 EUR).

When talking about the best city to work in, Frankfurt, software engineers can expect the highest salary of 64,572 EUR on average, followed by Stuttgart – 64,296 EUR and Munich with 63,600 EUR annually.

17% of all available jobs in city Dresden are dedicated for developers or similar jobs. So you might also look for a city to work not in relation to salary but to the availability of open positions for your skillet. Overall, Berlin and Munich have the most jobs for software engineers.

Experience

Another factor that is important for the salary of software engineers is professional experience. Depending on the company’s field, employers can require between 2 and 5 years of professional experience.

The experience should be closely relevant to the field that you’re applying for. Employers might also ask applicants for some of the code samples to see if the candidate fulfills their criteria.

Depending on the company’s size, it may well happen that software developers are allowed to take over tasks from similar IT areas. This often happens with smaller companies.

Software engineers with a business background can even make it to the managing director. In general, every professional experience that you have gives you better chances for a better position and salary.

Moreover, don’t miss the post about HOW TO GET A JOB AS A SOFTWARE ENGINEER IN GERMANY.

Conclusion

On average, brand new software developers start their careers with a salary of 39,250 EUR annually. With some years of experience, the income grows to 56,000 EUR on average. The absolute top pay can be up to 100,000 EUR annually.

Having a master’s degree will positively influence the salary of a software engineer in Germany on average by 5,000 EUR.

Check salaries in Germany on Gehalt.de – the best tool for comparison between occupations, seniority, experience, location.

Best-paid industries to work as a software engineer in Germany

Besides a successful degree and working experience, the industry plays an essential role in the salary of a software engineer in Germany. Even in this economically strong country, you can ruin your paycheck by choosing the wrong direction.

In Germany best-paid industries to work as software engineers are:

  • banks and insurances
  • medical technology
  • automotive industry
  • pharmaceutical industry
  • educational institutions
  • metal and chemical industries
  • petroleum processing industry

In these industries, software engineers earn an average of around 60,000 EUR.

However, these companies and industries traditionally provide jobs for software engineers in Germany:

  • information and telecommunication technology companies
  • software companies
  • IT (EDV in Germany) service providers
  • engineering offices

Due to digitalization, IT experts can work in many different areas. Today, most businesses have IT departments or IT research and development facilities.

Wondering how much is the average salary for your profession? Check the Gehalt.de – the best German resource which provides information on all salaries in the country. You can add filters like location, experience, skills, size of the company, and others to see the most accurate numbers!

Which skills must a software engineer possess?

Germany especially pays attention to the hard skills of the person over the soft skills. Traditionally skills that show your expertise have always been more important, for instance, your communication ability.

Typical hard skills a software engineer or software developer should have to work in Germany are:

  • programming languages and how to code (HTML, JavaScript, Python, and Ruby)
  • software development
  • system design and architecture
  • databases
  • algorithms and data structures
  • understanding product development
  • consulting of software solutions
  • English skills and ideally German

Not all of them are a must, but one should master at least one programming language.

Soft skills which are nice to have when looking for a job in Germany:

  • reliability
  • creativity
  • customer orientation
  • communication skills
  • teamwork

Programming languages

In-depth knowledge of programming languages is essential to work as a software engineer in Germany.

Current industry standards include programming languages such as C, C++, Java, Javascript, .NET, PHP, Ruby on Rails, Python, SQL, HTML, and CSS. Relational databases such as MySql or PostgreSQL and solutions such as Redis should be learned.

However, Java, SQL, and JavaScript are the most wanted in Germany. In Munich, for example, employers are looking mainly for Java experts, whereas in Berlin, Ruby is very popular due to the exponentially growing start-up scene.

Data says that there are 11,000 open positions for Java followed by SQL – 8,000 jobs – and JavaScript – about 6, 500 positions. After experiencing a rise over the past years, Python now ranks 5th within the most demanded programming languages in Germany.

Job situation in Germany

In 2019, Germany was missing 124,000 IT specialists, including software engineers. The demand has increased by 50% from the last year. To find a suitable person takes 6 months on average; some companies don’t receive an application for their job positions altogether!

This is a major complication for German employers; many projects have to be postponed or won’t be started at all.

Another problem of employers is that some German developers expect a high salary despite the lack of skills or incapability to get a job done. Some practically don’t possess some important for IT specialist skills and knowledge.

Every third company with at least one job offer is looking for an IT expert. It shows the serious changes that are taking place in the German economy due to digitalization.

Software is becoming more and more part of the core business. This means that the software development process is now in companies across all industries, and it’s becoming more and more critical. Software engineers, data scientists, and IT project managers are frequently searched for.

Furthermore, German schools aren’t managing to train enough computer science students. The numbers are only slightly increasing with the years, disproportionally with the demand. In 2018, around 27,000 universities and vocational school students graduated with IT majors.

Check how much you can earn in Germany (for all professions).

Foreign software engineers in Germany

The German government relies on immigration as a solution for this labor shortage. They understand that it’s not foreign experts who depend on Germany, but Germany depends on them.

Since 2012 employment of foreigners had been increased in IT and in STEM fields overall. This began thanks to the introduction of a new immigration program – the EU Blue Card. Every year, thousands of people from EU and non-EU countries come to Germany via this attractive immigration program.

Im March 2020 German government made some changes in immigration law, making it even easier for non-EU nationals to come to work in Germany.

The regulations were made particularly easy for IT specialists: now they are allowed to enter the country and search for a job without a degree, but with several years of working experience in the IT industry.

The majority of software engineers and developers come from non-EU countries (59%) such as India, Russia, Turkey, Balkans, respectively, and EU countries (41%). The future of Germany pretty much depends on foreign IT exerts unless companies find a way to outsource these processes in other countries.

Foreign professionals are well qualified experienced and have been an essential part of the workforce in Germany. Mainly Indian IT specialists can be a solution for the massive human resources shortage and the shortage of skilled IT workers in Germany.

India, in particular, offers an enormous potential of professionals, primarily digital talents. With that said, you, as an overseas software engineer, have excellent chances to get a good job in Germany and so in the future.

Below you can see a video with a software engineer from India, who gives excellent advice on how to find a job in Germany.

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Opportunities for software engineers in Germany

Software engineers and IT specialists, in general, have enormous job opportunities in Germany and so all over the world! People with programming skills are in high demand in many countries, including Germany. In fact, 1 out of 10 jobs in Germany is for software engineers.

Additionally, there are some major difficulties with the employment of IT professionals. German recruiters need, on average 6 months to find the right candidate for the position in IT. This is longer than for any other academic profession.

Consequently, this fact provides EU and non-EU software engineers and other IT experts great chances to receive a well-paid job in Germany and migrate for a long-term living without many difficulties.

Great chances for immigration to Germany

Applicants who receive a job will be granted a 4 years residence permit – EU Blue Card, which can be exchanged on a permanent residence permit afterward. The permanent residence permit doesn’t have a length and will be granted for an unlimited time.

To receive an EU Blue Card candidate must prove a minimum required salary, which is much lower for IT experts – 43,900 EUR instead of the standard 56,400 EUR.

Read more about EU Blue Card and minimum salary.

Career opportunities

The same programming languages are used worldwide. Therefore, IT experts don’t necessarily need to learn German to work here. It can be seen as a significant advantage for foreign workers since German employers often want overseas employees to speak the language at least on some level.

In fact, as a software engineer, you often will find yourself working with other nationalities, and not only with Germans, which will enhance your experience with different cultures even more. For this reason, knowing German isn’t something you need, even when it comes to communication with colleagues.

Due to your occupation, your contact with clients is minimal; therefore, having good English skills is enough to find a good job in Germany.

With such great demand for skilled workers, you, as an expert, can choose the employer you want to work for. After gaining some years of experience in Germany, software engineers can be promoted to a better position.

Apart from promotion, German employers increase to pay for employees with the time in a company correspondingly.

The income of an IT expert can grow as much as 100k EUR annually with time, or you can choose a bigger company that consequently pays better.

Furthermore, 86,000 IT specialists are self-employed in Germany, accordingly to German law, you can freelance and work full time. It can further expand your income and expertise by taking on some projects outside of your day job.

Also read the article: 12 Most Common Jobs in Germany 2021.

Recommended products and services in Germany:

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Anna

Anna is an enthusiastic expatriate with experience of living in Germany, Austria and Greece. She shares her passion for living abroad on this website.

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