comparison of Germany and Russia – where programmers and IT specialists earn more
How much do IT specialists earn in Germany? What if you compare it with Russia? I show real numbers and share personal experience based on my position as a Scrum Master, as well as the experience of colleagues from active search chat. The numbers and order for this position and for others in IT are generally comparable.
I've been living in Europe for three years. In April 2024, I started working as a scrum master at ALDI SUD int in the city of Mülheim on the Ruhr River. My professional experience as a scrum master as of April 2024 was 5 years.
Content
Salaries of IT specialists in Germany in 2024
Important factors influencing salaries in Germany
Salaries of IT specialists in Russia in 2024
Comparison of salaries in Germany and Russia
Which is more profitable?
Bottom line
Salaries of IT specialists in Germany in 2024
The average salary for the position of scrum master / agile coach (hereinafter referred to as SM) in 2024 in Germany is 6.095 euros per month before taxes. This is the average figure for the hospital. To begin with, it all depends on the city.
Berlin
Berlin is a city of startups, hipsters and… well, maybe not the highest salaries, although SMs are doing well here. The median salary is around 5,611 euros per month, depending on the level: junior, middle, senior.
It is important to remember that Berlin, although the most “soulful”, is expensive in terms of living: rent, utilities.
Munich
Munich is a completely different story. Top salaries, expensive restaurants and views of the Alps. In terms of salaries, SMs receive an average of 6,615 euros per month.
The truth is, living in Munich is almost like playing the game “how to save money on rent.” Housing prices are skyrocketing.
Frankfurt
Frankfurt is a place where there are many banks and large corporations. SM salaries here average 6,774 euros.
Not bad, but the competition in the market is serious, so you will have to fight for your place under the German IT sun.
Stuttgart
Stuttgart is a city of engineers, machines and big technologies, here SMs have the highest average monthly salaries of 7.158 euros per month. You can live comfortably in Stuttgart, especially if you love innovation and don’t mind the city rhythm with an emphasis on technology. Porsche and Mercedes are like family here.
Dusseldorf
Düsseldorf is the fashion and business capital of the Rhine, but there are also excellent opportunities for IT professionals. The average salary of SMs is 6,188 euros.
This city is often underrated – not expensive compared to Munich and not as “hipster” compared to Berlin, but living here is quite comfortable if you like a balance between work and leisure.
I myself live just north of Düsseldorf, in the small town of Mülheim on the Ruhr River. Which gives me the advantage of saving on rent.
This significantly affects how much you have left after paying all the required payments. I will write about this in more detail later.
Thuringia
Thuringia is eastern Germany, and its salaries are more modest than the rest of Germany. The average salary of SMs here is 4,954 euros per month, but the cost of living is noticeably lower. In Erfurt or Jena, you can get a good job, especially if you don’t care so much about the noise of a big city, but want peace and greenery.
Other cities
If we talk about other cities, the trend, as can be seen in the graph, is that the further south you go, the more money is offered to self-employed people, and in IT in general. No wonder Bavaria is the richest state in Germany. The least money is in the eastern part of Germany. Historically, this is how it happened.
It has its advantages. For example, the cost of living is lower on average.
What ultimately affects how much money remains in your pocket after paying all mandatory payments.
Important factors influencing salaries in Germany
Is German required for an offer? No, if you know the language, this is of course a plus, but far from being a key factor for an offer.
For example, I work in a company (ALDI SUD int) where 50% of the employees are expats and speak only English. Accordingly, when searching for new candidates, German is not a priority here.
In addition to my case, I personally know several experts who also initially received an offer without expecting knowledge of German.
What is exactly important when making a potential offer is your skills, experience and how cool you are in your field.
Language: English or German?
It all depends on your position. Let's consider SMs for whom communication is one of the main skills; having German at the B1-B2 level gives a significant competitive advantage or, more correctly, expands your selection of vacancies to respond to on the market.
True, only with English, there are also enough open sentences, see my example above.
Developers and testers also need to speak a foreign language, but the requirements are lower for German in particular.
For example, the same Berlin is a metropolis for expats. Many companies here do not require German. In startups or large international companies, you can easily get by without knowing the local language. Plus, if you are a senior with a strong resume, companies will more often turn a blind eye to your “beginner” level of German.
When is German needed?
Small German companies where the majority of employees are local. This is where German becomes important, if only to understand what is happening at team meetings or after work over a glass of beer. I would say this is a minimum of B1.
My advice
If you want to live comfortably and not experience stress from communicating in the store or with neighbors – learn germanat least at a basic level. This will make your life outside the office easier, but you can easily get a job and a good salary in IT with excellent English.
Experience and position
How do salaries change depending on the level of junior, middle, senior?
This is where the fun begins. It all depends on your experience and how you are valued in the market.
Salary – June
Anyone from 0 years old to about 2 years old is usually classified as a junior.
For a SM it’s something like “I know, I read it in theory. I’ve done it a couple of times in practice; it would be nice to get advice from an experienced colleague.”
Junes get – on average from 3,500 to 4,500 euros per month before taxes. This is not bad for a start, especially when compared with what juniors get in Russia.
The trick here is that the local market is usually crowded with Junes. So expats are rarely hired for this position. I personally don't know of any cases.
Salary – Middle
3 – 6 years of experience. For a GM, this is something like: I understand what to do with the team, how to help solve a specific request, and how to generally achieve the obscenity of the team. Middles in Germany receive – from 5,000 to 6,000 euros per month before taxes.
This is already a level where you can confidently plan your budget and not worry too much about renting an apartment in some Berlin, although here, of course, a lot depends on the family issue.
It’s funny that in 2023, when I received the offer, I had 5 years of experience in the position of Manager and in the Russian Federation and Hungary I was considered a senior, but for Germany I was and still am a middle.
At least in terms of experience.
Senior salaries
7+ years of experience. Senior SM – as I understand it, the German market is a middle manager who has taken on a visible, significant piece of responsibility in the company. For example, people leads from other social networks.
Seniors receive in Germany above 6000 euros per month before taxes.
In top companies it’s even more so – it all depends on your experience and how you “sell” yourself in an interview.
The money is good, you can live quite comfortably. As they say, with big money comes great responsibility, I’m talking about taxes, but more on that later.
Salaries of IT specialists in Russia in 2024
I admit honestly, I myself have not lived in Russia for three years, so I took all the data from former colleagues. I have no reason not to trust them, so as they say, what I bought for is what I sell for 🙂
Salaries in Moscow and St. Petersburg
Moscow is traditionally the top city in terms of salaries. Junes can count on 100,000 – 150,000 rubles per month. A middle student with a couple of years of experience gets 150,000 – 250,000 rubles Seniors see on their pay slips from 250,000 to 400,000 rubles per month.
In St. Petersburg the situation is similar, but a little calmer. Junes get off 80,000 to 130,000 rubles, middles – 130,000 – 220,000 rubles, and seniors – from 220,000 to 350,000 rubles
Salaries in the regions
If we talk about smaller cities, then the situation is more modest. Junes get approx. 50,000 – 80,000 rubles, middles – 80,000 – 130,000 rubles, and the senors – 130,000 – 200,000 rubles
Comparison of salaries in Germany and Russia
Let's clearly see what salaries in Germany and Russia look like after taxes. I would say this is the most interesting, since the large numbers that I indicated above for Germany decrease significantly after taxes are paid.
Taxes in Germany: progressive scale
In Germany, taxes are a separate world, and sometimes it feels like you need another higher education there to understand everything. I’ll try to simply and briefly explain what’s what.
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Depending on your salary and tax class, there are only 5 of them, the rate can be from 0% to 45%. We are interested in the interval 24% – 42%, since this is exactly the salary interval in which your annual salary will most likely be 17,006 euros – 277,825 euros.
For example, you are not married, there are no children and there is no one to support you, the cat doesn’t count, and you earn 5,000 euros a month before taxes, then after all deductions you will have approximately 2,900 euros “net” left.
This is an example of the 1st tax class with the highest tax – 42%.
Perhaps you have a situation like mine, you have an officially unemployed wife and child, then this is tax class 3. With it, if I simplify again, I will pay not 42% but about 30%.
Why am I writing approximately, because in fact, with tax class 3, in fact, I do not have a reduction in the interest tax rate, but there is an increase in the minimum amount per year that is not taxed at all.
To simplify understanding, knowing the average salaries in IT, this is approximately a 10% reduction per month.
In total, with a salary of 5,000 euros per month, after taxes I will have 3,500 euros left.
In addition, the state will pay me 250 euros per month for my child until I turn 18, and there is still the opportunity to receive additional money for my non-working wife. What I mean is that in fact it will come out to more than 3,500. But for the purity of the calculation, let's leave it as it is – 3500.
Taxes in Russia: 13% ?
In Russia, everything is simpler with taxes – there is a single income tax rate of 13%. It sounds very tempting, especially when you hear about the German 42%.
For example, you earn 150,000 rubles a month before taxes, then you will receive 130,500 rubles in your hands.
Calculation example: Germany and Russia
Now let’s look at everything using specific examples to make it easier to understand where it’s more profitable:
Germany:
My case, I live in the small town of Mülheim, just north of Düsseldorf, my salary before taxes is for example 6,200 euros per month. After all the deductions, I will receive about 4,300 euros net, let me remind you that I have 3 tax class = 30% tax.
Russia:
In Moscow, a similar senior with my experience would receive 350,000 rubles. After a tax of 13%, he will have approximately 300,000 rubles left.
Which is more profitable?
It seems that 4,300 euros is almost 1.5 more than 300,000 rubles, but is this true if you look at everyday expenses?
It is important to consider that in Russia the cost of living is lower. Housing is cheaper, and if you already have an apartment, it’s a huge advantage. In Germany, renting an apartment can “eat up” a large part of your salary, especially in cities like Munich or Berlin, and most likely none of the expats will have their own apartment.
Returning to my example, I rent a spacious 4-room apartment of 120 sq. m. m. in a new small apartment building and I pay rent for the apartment + all utilities 2000 euros per month.
Almost 50% of the salary, and by the way this is considered a profitable option for Germany. For the same money in Munich you can find something with two or three rooms that is not in new condition.
For comparison, I remember when I lived in St. Petersburg, my friends told me that a top apartment in the center, overlooking the embankment, was exactly 200,000 rubles per month, about 2,000 euros.
A grocery basket in Germany costs me about 650 euros per month for two adults and a child. In Russia, when there were two more of us – my wife and I, the basket amounted to an average of 40,000 rubles per month according to data from 2021. In both options, we eat mostly home-cooked food, sometimes we buy something ready-made or go to restaurants.
Conclusion
What to choose – a more stable Germany with high taxes or Russia with lower expenses? Here, as for me, everyone should decide for themselves.
In Germany, on average they pay more, but expenses are higher here, especially on rent.
As for me, it all depends on your goals, marital status and what you value more: social guarantees or flexibility of spending.
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What do you think?
