Living in Germany is expensive and the costs of living differ according to the city you live in. Salaries differ from city to city, so does the cost of living.
With many questions coming from friends and would be ‘movers’ about cost of living in Germany, I decided to write a short blog about how much it costs to live with a family in Germany.
Let us consider someone, with around 7 to 9 years of working experience in IT, can get somewhere around 55 to 70 thousand euro per year. With 9 years of experience, I assume that a person is around 30 years old and is recently married or has a young family.
City into consideration is Munich in the state of Bavaria. Munich is generally the most expensive city to live in Germany and has higher salaries.
Taxes will depend on the following
- Marital status.
- If your wife is working.
- Number of incomes (2 jobs, business, etc).
Here is a link to a good wage tax calculator:
Let us take a case where the husband is working and the wife is not and have a 1-year-old child
|Yearly salary||65000 €|
|Monthly salary||5416,66 €|
|Monthly Wage Tax||824,16 €|
|Solidarity Surcharge||45,32 €|
|Sum of the Taxes||869,48 €|
|9.45% Obligatory Pension Scheme||511,81 €|
|1.5% Unemployment Insurance||81,24 €|
|8.2% Health Insurance (incl. 0.9 % from the Employee )||332,10 €|
|1.275% Disability Insurance||51,64 €|
|Sum of the Social Security Contribution||976,79 €|
|Net Salary in hand||3.569,73 €|
Kinder-geld (child allowance paid directly into your account by the Employment office): 184€
Here are the approximate expenses the family would have if they live a decently good life and not be miserly.
|So the total monthly expense would be around||2250 €|
|Rent for a 2 bedroom house (water and heating included)||1100 €|
|Mobile for 2 people|
(Including India calling VOIP / Lebara )
|German integration course (you will 'not' need to do this but is recommended)||120 €|
|Child care (nursery)||350 €|
|Groceries (Including trips to Indian store )||200 €|
|Outside food / recreation (avoidable to an extent. Appropriated over a year. In summers you will spend more)||150 €|
|Miscellaneous expenses (occasional clothes, jackets, shoes,etc)||100 €|
Add 20 € per month as an expense for extra dental insurance per person. But this one is totally dependent upon your dental history.
There will also be a one time moving cost to Germany which will be substantial. It would include:
- Deposit for the house which is 3 times the monthly salary
- Provision for the house (Agent fees) is 2 times the monthly rent.
- Furnishing the house. The cost depends on how you want to do it.
So here you go. If you have any questions, feel free to ask.
UPDATE: Also consider around 500 Euro per month of costs which are not foreseeable. E.g. Visa costs, translations, community trips, visiting your country, electronics, etc
So from your net saving per month deduct this amount so the net saving per month should be around 300 € + 184 € – 500 €