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Germany has severe wage compression going on for more than a decade. Companies are making more money every year, but instead of sharing that by increasing wages

Germany has severe wage compression going on for more than a decade. Companies are making more money every year, but instead of sharing that by increasing wages or sharing equity, they invest the profits (mostly abroad). The only reason it hasn't blown up yet is that the value of € is kept low by southern European countries that are struggling to stay afloat. Since the living costs remain relatively low, employees don't have to ask for more. Source: recruiters trying to convince me that €60k is what senior software engineers make in Germany. If you are wondering, that leaves you with €2900/month after taxes and insurance. The wonders of progressive income tax.

dmoy 9y ago
60k Euro for a senior? Is that total liquid comp? That's like one fifth of what a senior makes at goofacesoftwhatever. I had no idea German salaries were so low, wow.
- blawson 9y ago
  It's similar in Amsterdam. I remember being pretty well paid (granted this was 5 years ago) as a software engineer and my salary was around €60k. I will say that, for me, quality of life on that salary felt much better than you'd expect in absolute terms. But then rent and housing costs have gone up quite a bit in the last few years I understand.
- wolfgke 9y ago
  When I look at descriptions about the living costs/housing prices in SF and its environment, I think that with, say, EUR 40k one has a better life in Germany (except the really expensive metropolitan areas in Germany as Munich, Stuttgart etc.) than with US$ 100k somewhere around SF.
  - dmoy 9y ago
    Right, but if a senior at amagoowhatever is making 350k usd, and a senior in Berlin/münchen is making 70k usd, it's a very, very different conversation. I meant literally five times as much, not a figure of speech...
    - wolfgke 9y ago
      München is very expensive - if you don't earn a lot of money when living there it is not worth taking the job. On the other hand in Berlin it is much simpler to live cheaply (though the prices for apartments in Berlin have skyrocketed in the last years).

dmoy 9y ago

60k Euro for a senior? Is that total liquid comp? That's like one fifth of what a senior makes at goofacesoftwhatever. I had no idea German salaries were so low, wow.

blawson 9y ago
It's similar in Amsterdam. I remember being pretty well paid (granted this was 5 years ago) as a software engineer and my salary was around €60k. I will say that, for me, quality of life on that salary felt much better than you'd expect in absolute terms. But then rent and housing costs have gone up quite a bit in the last few years I understand.
wolfgke 9y ago
When I look at descriptions about the living costs/housing prices in SF and its environment, I think that with, say, EUR 40k one has a better life in Germany (except the really expensive metropolitan areas in Germany as Munich, Stuttgart etc.) than with US$ 100k somewhere around SF.
- dmoy 9y ago
  Right, but if a senior at amagoowhatever is making 350k usd, and a senior in Berlin/münchen is making 70k usd, it's a very, very different conversation. I meant literally five times as much, not a figure of speech...
  - wolfgke 9y ago
    München is very expensive - if you don't earn a lot of money when living there it is not worth taking the job. On the other hand in Berlin it is much simpler to live cheaply (though the prices for apartments in Berlin have skyrocketed in the last years).