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IG Metall Mitte STARTING SALARIES FOR GRADUATES IN 2019 Information provided by IG Metall for the metal and electrical industries

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Page 1: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

IG MetallMitte

STARTING SALARIES FOR GRADUATES IN 2019

Information provided by IG Metall for the metal and electrical industries

Page 2: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

3

Your annual pay matters!

Details are key: »Annual pay« is quite often understood differently, and the definition of it depends on the com-pany you will be working for and what you negotiate in the employment contract. Many companies pay twelve monthly pay packets, others grant an additional 13th pay packet. In companies bound by collective agree-ments there is also a performance bonus – an average of four to 15 percent of the pay depending on the col-lective agreement, as well as other collective benefits, such as holiday pay, special payments (Christmas bo-nus) and contributions to employee capital formation. In addition, »voluntary bonuses« can be paid. These should, however, be recorded in writing and – in the case of variable bonuses – be worded as precisely as possible.

From 2019, the new collective agreement on supplemental money paid as a one-off payment (TV T-ZUG) will apply in companies bound by col-lective agreements. The one-off payment (T-ZUG) consists of two parts: firstly, an amount of 27.5 percent of the individual average monthly pay, and secondly, a payment amounting to 12.3 per-cent of the base pay for skilled workers (EUR 400 in 2019). Certain employee groups, for example employees raising children or caring for relatives, now have a new option: under certain conditions, they can choose eight additional days off per year instead of the supplemental one-off pay-ment of 27.5 percent.

How much can you earn?

Starting salaries for graduates: Job tips and information

How much can you earn when starting your career? What do you need to consider when concluding an em-ployment contract? This is where IG Metall comes into play, providing you with information to get your career off to a good start.

What does »pay« mean?

A »fixed« portion of your pay is usually your set mon-thly salary plus additional payments such as perfor-mance bonuses, holiday pay, special payments and the like. If companies and employees are bound by a collective agreement, such benefits must be paid mandatorily. The situation is different if there is no co-verage and for exempt employees (AT-Angestellte/r): in this case, the benefits vary from company to company.

In general, promises made by companies, e.g. to provi-de a company car or a company mobile phone, are not guaranteed by the employment contract and can thus be changed unilaterally by companies.

Tip: We always recommend talking to the works council or local IG Metall experts.

Page 3: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

4 5

Working time is crucial

In the metal and electrical industries, the 35-hour work week is considered normal for full-time employees. From January 1, 2019, employees working in the metal and electrical industries will be entitled to reduced full-time work under collective agreements. With this new regulation, employees can reduce their working week to a minimum of 28 hours for the duration of six to 24 months. After that, the normal 35-hour work week applies again automatically – alternatively, employees can continue to work reduced hours. To benefit from this arrangement, employees must have worked in the company for at least two years and have submitted a written request to the employer at least six months in advance.

With the concept of reduced full-time, IG Metall has en-forced the right of employees to return to full-time work. Employees can reduce their working hours according to their personal needs and return to a normal full-time work week later.

Why is working for a company bound by collective agreements beneficial?

In general, the remuneration level in companies bound by collective agreements is higher overall. The table below shows that engineers earn 18.5 percent more and economics graduates over 24.6 percent more than their counterparts in companies not bound by collective agreements. The IG Metall collective agreements also ensure a high level of pay dynamics for its members. In the first year after entering the labour market, remune-rations increase by an average of 10 percent without any additional individual negotiations. In addition to the increases due to the duration of employment there are regular pay rises after successful wage negotiations.

In principle, only unionised employees, i.e. IG Metall members in the metal and electrical industries, are entitled to collective bargaining benefits.

Page 4: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

6 7

Annual income of university graduates with work experience in the metal and electrical industries of up to three years

Gross annual pay in EUR (without bonuses and special payments)

Higher salary in companies bound by collective bargaining agreements

25th percentile

Median

75th percentile

in Euro

in %

Engineers, Mathema-ticians and Physicists

37 995 45 414 55 961 8 386 18.5

Economists 36 459 42 453 52 898 10 445 24.6

Source: www.lohnspiegel.de – WSI-Lohnspiegeldatenbank* The respondents have different working hours per week. For the calculation of monthly pay, the earnings data are broken down to an hourly wage. In a second step, the monthly pay is calculated based on 35 hours per week. The median value indicates that 50 percent of the respondents earn more and 50 percent earn less than this value. Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800 and that of economists is EUR 52,898 per year. The median values in the table show that engineers earn 18.5 percent more and graduates of economics even 24.6 percent more than their counterparts in companies which are not bound by collec-tive agreements. Deviations in the table are due to rounding.

What else do I need to know?Wages differ from region to region; the company’s size also plays a role in determining wages. They tend to be higher in Western and Southern Germany than in Northern and Eastern Germany.

The following tables provide an exemplary overview of the typical annual remunerations for university gradua-tes in the metalworking industry when working for a company bound by collective agreements in an occupa-tion which corresponds with their education/training.

Collectively agreed starting remuneration – IG Metall remuneration framework agreement for the metal and electrical industries from April 1, 2018*

* Metall-Entgelt- Rahmen-Abkommen, ERA – for further information on other bargaining districts, go to : www.hochschulinformationsbuero.de/tarife

Schleswig-Holstein / Nordwest-Niedersachsen** 35 hours/week

EG 9G EG 10GMonthly base pay 4655 € 5281 €Monthly remuneration with performance bonus

4934 € 5598 €

Pay for 12 months 59 212 € 67 174 € + holiday pay 3403 € 3861 € + special payment (at least 55 %)

2714 € 3079 €

Annual remuneration 65 329 € 74 114 €

From 2019 + supplemental one-off payment

1357 € 400 €

1539 € 400 €

Annual remuneration 67 086 € 76 053 €

** Rounded to the nearest EUR* Lohnspiegel (»wage mirror«) is part of an international research project supervised by the Institute of Economic and Social Re-search (WSI) within the Hans-Böckler-Foundation.

Page 5: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

8 9

Berlin West* 35 hours/week

EG 10Monthly base pay 4149 €Monthly remuneration (incl. an average performance bonus)

4564 €

Pay for 12 months 54 768 € + holiday pay (50 % for 30 days of paid holidays)

3148 €

+ special payment (25 % of the monthly remuneration)

1141 €

Annual remuneration 59 057 €

From 2019 + one-off payment 1255 €

400 €Annual remuneration 60 712 €

* Rounded to the nearest EUR

Hessen und Rheinland / Rheinhessen 35 hours/week

EG 9Monthly base pay 4458,00 €Monthly remuneration (incl. an average performance bonus)

4903,80 €

Pay for 12 months 58 845,60 € + holiday pay (50 % for 30 days of paid holidays)

3381,93 €

+ special payment (25 % of the monthly remuneration)

1225,95 €

Annual remuneration 63 453,48 €

From 2019 + one-off payment 1348,55 €

400,00 €Annual remuneration 65 202,03 €

Page 6: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

10 11

Niedersachsen* 35 hours/week

EG 11A EG 12AMonthly base pay 4213 € 4806 €Monthly remuneration (incl. an average performance bonus)

4634 € 5287 €

Pay for 12 months 55 608 € 63 444 € + holiday pay (50 % for 30 days of paid holidays)

3196 € 3646 €

+ special payment (25 % of the monthly remuneration)

1159 € 1322 €

Annual remuneration 59 963 € 68 412 €

From 2019 + one-off payment 1159 €

400 €1322 € 400 €

Annual remuneration 61 522 € 70 134 €

* Rounded to the nearest EUR

Bayern* 35 hours/week

EG 9 EG 10Monthly base pay 4163 € 4604 €Monthly remuneration (incl. an average performance bonus)

4746 € 5249 €

Pay for 12 months 56 950 € 62 983 € + holiday pay (50 % for 30 days of paid holidays)

3273 € 3619 €

+ special payment (25 % of the monthly remuneration)

1187 € 1312 €

Annual remuneration 61 410 € 67 914 €

From 2019 + one-off payment 1305 €

400 €1443 € 400 €

Annual remuneration 63 115 € 69 757 €

* Rounded to the nearest EUR

Page 7: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

12 13

Better off with collective agreements

As per collective agreement

Statutory

Working hours per week

35 hours* 38 hours** max. 40 hours***

48 hours

Working week Monday through Friday

Monday through Saturday

Holidays 30 days (six weeks)

24 days (four weeks)

Holiday pay 50 % per day off n/a

Christmas bonus up to 60 % depending on period of employ-ment and collective bargaining area

n/a

Supplemental one-off payment (T-ZUG)

27.5 % + 12.3 % base pay for skilled workers after a period of employment of six months

n/a

Overtime pay 25 - 50 % n/a

Paid time off (for private reasons)

Regulated n/a

Pay increase Negotiated annually n/a

* Western German metal and electrical industries

** Eastern German metal and electrical industries

*** Possible for a maximum of 13 or 18 percent of the employees based on individual agreements; the pay has to be adjusted accordingly.

Baden-Württemberg 35 hours/week

EG 12 EG 13Monthly base pay 4488,00 € 4780,00 €Monthly remuneration (incl. an average performance bonus of 7,5 %)

4824,60 € 5138,50 €

Pay for 12 months 57 895,20 € 61 662,00 € + holiday pay (50 % for 30 days of paid holidays)

3328,97 € 3545,56 €

+ special payment (25 % of the monthly remuneration)

1206,15 € 1284,63 €

Annual remuneration 62 430,32 € 66 492,19 €

From 2019+ one-off payment 1234,20 €

400 €1314,50

400 €Annual remuneration 64 064,52 € 68 206,69 €

Page 8: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

14

What should I consider when signing an employment contract? In principle, employment contracts can be negotiated freely. However, statutory minimum conditions must be observed. Company regulations are usually better - especially if they are laid down in collective agreements (see table on the left). If your company has concluded a collective agreement with IG Metall, for example, six weeks of holiday apply right away, instead of the statut-ory four weeks – in line with the collective agreement.

The employer may only offer a contract to a candidate who is exempt from a collective agreement if the job requirements are higher than those of the highest collectively negotiated pay category. The pay must be between 15 percent and 35 percent higher than the highest collectively agreed pay level, depending on the collective bargaining area.*

IG Metall has compiled all the important tips on employ-ment contracts in a guidebook. This guidebook is avail-able at your local IG Metall office and can be ordered online:

* The collective agreements of IG Metall for the metal and electrical industries in Baden-Württemberg do not distinguish between emp-loyees covered by collective agreements and those who are exempt. In practice, this means that all the regulations of collective agree-ments – including pay increases and working time regulations – apply to all employees in Baden-Württemberg.

www.hochschulinformations-buero.de/index.php?id=469

Where can I get more information? › www.hochschulinformationsbuero.de: Here univer-

sity students and graduates will find valuable tips on study and work as well as information on local events and contact persons.

› Pay analysis for the IT and telecommunications sector: Once a year, IG Metall evaluates the remuneration in these sectors, from career entry level to management positions. It serves as orientation for pay negotiations and provides valuable information about jobs and earning opportunities in the ITC sector. www.itk-igmetall.de

› IG Metall database on everything concerning collecti-ve agreements: This is where you will find current and reliable information about income subject to collec-tive agreements, remuneration, special payments, contributions to employee capital formation, holiday, and protection against dismissal – all the things IG Metall has negotiated for the employees in collec-tive agreements. www.igmetall.de/tarife > Tarifinfo

› How do collective agreements work, what do they govern? Who benefits from them and which advan-tages do they have for me? How are they concluded? The booklet »Perspektive Tarifvertrag« (available in German) gives answers to all these questions. It is handy for all those who are interested in these topics but have not yet dealt with them. It is available at your local IG Metall office.

› WSI-Lohnspiegel: Online salary check with free information on actual wages and salaries paid in over 380 professions and jobs. Ongoing online survey on working and income conditions. www.lohnspiegel.de

Page 9: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

Strong on-site.From Flensburg to Lörrach, from Aachen to Bautzen.

IG Metall connects.We are many. Join us.

Yes. Count me in.

Give the membership declaration to IG Metall works council, IG Metall union representatives or IG Metall on-site. Or just sent back.

AnIG Metall VorstandFB Mitglieder und Erschließung60519 Frankfurt am Main

On-site – throughout Germany.

igmetall.de/vor-ortfacebook.com/igmetall

flickr.com/igmetall

twitter.com/igmetall

youtube.com/igmetall

over 135 000 active union representatives

over 2.2 million members

over 18 000 plants in 30 branches

over 150 local offices

over 53 000 members of works council

Page 10: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

Empl

oym

ent

info

rmat

ion

Approached by (last name, first name) or marketing team Membership number of referrer (if applicable) Gross income Fee

Gross monthly income

Ban

k de

tail

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BIC* Bank / Branch Account holder

IBAN*

D E

P l a c e / d a t e / s i g n a t u r e P l a c e / d a t e / s i g n a t u r e P l a c e / d a t e / s i g n a t u r e

Data protection notice: My personal data is collected, processed and used by IG Metall and its union shop stewards for the purpose of setting up and administrating my membership in compliance with the data protection provisions of the EU General Data Protection Regulation (GDPR) and German data protection law (BDSG). Within these specified purposes, my data is only disclosed and used for the performance of union responsibilities by persons specially commissioned for these purposes. The data is not shared with third parties, unless I have given my specific consent. This data is not disclosed to any other parties for the purposes of marketing. The European and German data protection rights apply as amended. More information about data protection is available at https://igmetall.de/datenschutz-dok. If I would prefer a printed version of the data protection information, I can request this at [email protected].

Membership declaration: I herewith join “Industriegewerkschaft Metall”, “IG Metall” for short, and accept the statutes of this trade union. I herewith confirm the correctness of the details about myself, which I have made available to IG Metall for the purposes of data collection with regard to my enrolment as a member.

SEPA direct debit (recurring direct debit)IG Metall creditor identifier: DE71ZZZ00000053593Mandate reference: membership number01 SEPA direct debit mandate: I herewith authorize IG Metall to debit my bank account on the agreed due date by way of direct debit with the membership fee payable by me in accordance with Section 5 of the Statute of 1% of my monthly gross income. Simultaneously, I instruct my bank to authorize the debiting transactions in my bank account requested by IG Metall.Please note: I may request a refund of the debited amount within eight weeks of the day of debiting of the account. The terms and conditions agreed with my bank apply. I will inform IG Metall without undue delay of any changes in my details.

Consent to the transfer of my personal data to the bank for the purpose of processing the SEPA direct debit. I herewith consent to IG Metall disclosing my personal data (particularly name, IBAN / BIC, amount), which may disclose my trade union member-ship, to the implementing payment service provider(s) for the pur-pose of processing the SEPA direct debit. According to current data protection law, trade union membership is a specially sensitive piece of personal information which is specially protected. The transfer of the aforementioned data is a precondition for IG Metall to be able to debit the membership fees by SEPA direct debit in accordance with the Statutes. My consent forms the legal basis for data processing for the aforementioned purpose. My consent is voluntary. I have the right to revoke this consent at any time with effect for the future. A revocation does not affect the lawfulness of any processing which has taken place up to the time of revocation on the basis of my con-sent. The information document on the processing of personal data, available at https://www.igmetall.de/datenschutz-dok, contains further information on data processing.

Stand 25.05.20

18 / Englisch

Pers

onal

dat

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Employed at company / postal code / city Profession / occupation / course of study / vocational training

** Membership number, please insert in case of changeof details Membership start date

Last name* First name* Date of birth*

Gender* Nationality*

female male

Country* Postal code* Town / City*

Type of membership Full-time Part-time Self-employed Apprentice School pupil, university student Retrainee Integrated degree program

Please complete in block letters and send to your local office or to IG Metall in 60519 Frankfurt am Main. *Mandatory information **To be completed by IG MetallYou can complete this form online at: www.igmetall.de/beitreten

Street* House number* Phone number work personal

Mobile work personal Email work personal

D D M M Y Y Y Y

D D M M Y Y Y Y

M E M B E R S H I P D E C L A R A T I O N

Temporary workers / Contract work; name of company of deployment Fixed-term employment Training / Comparable institution / University from to

Page 11: STARTING SALARIES FOR GRADUATES IN 2019 · 2019. 3. 19. · Database 2011/1 – 2017/05. In companies bound by collective agreements, the median value for engineers is EUR 53,800

We. The IG Metall.Additional Information.

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All about International Students and Labour:

A brief journey through major legislation

Greater knowledge about the world of work

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Good people. Strong performance.

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