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

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How much Your annual pay matters! can you earn? 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- Starting salaries for graduates: ments there is also a performance bonus – an average Job tips and information of four to 15 percent of the pay depending on the col- lective agreement, as well as other collective benefits, How much can you earn when starting your career? such as holiday pay, special payments (Christmas bo- What do you need to consider when concluding an em- nus) and contributions to employee capital formation. ployment contract? This is where IG Metall comes into In addition, »voluntary bonuses« can be paid. These play, providing you with information to get your career should, however, be recorded in writing and – in the off to a good start. case of variable bonuses – be worded as precisely as possible. 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 From 2019, the new collective agreement on the like. If companies and employees are bound by supplemental money paid as a one-off payment a collective agreement, such benefits must be paid (TV T-ZUG) will apply in companies bound by col- mandatorily. The situation is different if there is no co- lective agreements. The one-off payment (T-ZUG) verage and for exempt employees (AT-Angestellte/r): in consists of two parts: firstly, an amount of 27.5 this case, the benefits vary from company to company. percent of the individual average monthly pay, and secondly, a payment amounting to 12.3 per- In general, promises made by companies, e.g. to provi- cent of the base pay for skilled workers (EUR 400 de a company car or a company mobile phone, are not in 2019). Certain employee groups, for example guaranteed by the employment contract and can thus employees raising children or caring for relatives, be changed unilaterally by companies. now have a new option: under certain conditions, they can choose eight additional days off per year instead of the supplemental one-off pay- Tip: We always recommend talking to the ment of 27.5 percent. works council or local IG Metall experts. 4 5

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

In the metal and electrical industries, the 35-hour work In general, the remuneration level in companies bound week is considered normal for full-time employees. by collective agreements is higher overall. The table From January 1, 2019, employees working in the metal below shows that engineers earn 18.5 percent more and electrical industries will be entitled to reduced and economics graduates over 24.6 percent more than full-time work under collective agreements. With this their counterparts in companies not bound by collective new regulation, employees can reduce their working agreements. The IG Metall collective agreements also week to a minimum of 28 hours for the duration of six ensure a high level of pay dynamics for its members. In to 24 months. After that, the normal 35-hour work week the first year after entering the labour market, remune- applies again automatically – alternatively, employees rations increase by an average of 10 percent without any can continue to work reduced hours. To benefit from additional individual negotiations. In addition to the this arrangement, employees must have worked in the increases due to the duration of employment there are company for at least two years and have submitted a regular pay rises after successful wage negotiations. written request to the employer at least six months in advance. In principle, only unionised employees, i.e. IG Metall members in the metal and electrical industries, are With the concept of reduced full-time, IG Metall has en- entitled to collective bargaining benefits. 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. 6 7

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

Gross annual pay in EUR Higher salary in (without bonuses and ­special companies bound remuneration – IG ­Metall payments) by collective­ bargaining­ remuneration framework agreements­ 25th 75th ­agreement for the metal and percentile­ Median percentile­ in Euro in % Engineers, 37 995 45 414 55 961 8 386 18.5 electrical ­industries from Mathema- ticians and Physicists ­April 1, 2018*

Economists 36 459 42 453 52 898 10 445 24.6

Source: www.lohnspiegel.de – WSI-Lohnspiegeldatenbank* * Metall-Entgelt-­Rahmen-Abkommen, ERA – The respondents have different working hours per week. For the for further information on other bargaining districts, go to : calculation of monthly pay, the earnings data are broken down to an www.hochschulinformationsbuero.de/tarife 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 Schleswig-Holstein / Nordwest-Niedersachsen** 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 35 hours/week percent more and graduates of economics even 24.6 percent more EG 9G EG 10G than their counterparts in companies which are not bound by collec­ tive agreements. Deviations in the table are due to rounding. Monthly base pay 4655 € 5281 € Monthly remuneration 4934 € 5598 € What else do I need to know? with performance bonus Wages differ from region to region; the company’s size Pay for 12 months 59 212 € 67 174 € also plays a role in determining wages. They tend to ++ holiday pay 3403 € 3861 € be higher in Western and Southern than in ++ special payment 2714 € 3079 € Northern and Eastern Germany. (at least 55 %) Annual remuneration 65 329 € 74 114 € The following tables provide an exemplary overview of From 2019 the typical annual remunerations for university gradua- ++ supplemental one-off 1357 € 1539 € tes in the metalworking industry when working for a payment 400 € 400 € company bound by collective agreements in an occupa- Annual remuneration 67 086 € 76 053 € tion which corresponds with their education/training.

* Lohnspiegel (»wage mirror«) is part of an international research ** Rounded to the nearest EUR project supervised by the Institute of Economic and Social Re- search (WSI) within the Hans-Böckler-Foundation. 8 9

Berlin West* Hessen und Rheinland / Rheinhessen 35 hours/week 35 hours/week EG 10 EG 9 Monthly base pay 4149 € Monthly base pay 4458,00 € Monthly remuneration (incl. an 4564 € Monthly remuneration (incl. an 4903,80 € average performance bonus) average performance bonus) Pay for 12 months 54 768 € Pay for 12 months 58 845,60 € ++ holiday pay (50 % for 30 days 3148 € ++ holiday pay (50 % for 30 days 3381,93 € of paid holidays) of paid holidays) ++ special payment (25 % of the 1141 € ++ special payment (25 % of the 1225,95 € monthly remuneration) monthly remuneration) Annual remuneration 59 057 € Annual remuneration 63 453,48 € From 2019 From 2019 ++ one-off payment 1255 € ++ one-off payment 1348,55 € 400 € 400,00 € Annual remuneration 60 712 € Annual remuneration 65 202,03 €

* Rounded to the nearest EUR 10 11

Niedersachsen* Bayern* 35 hours/week 35 hours/week EG 11A EG 12A EG 9 EG 10 Monthly base pay 4213 € 4806 € Monthly base pay 4163 € 4604 € Monthly remuneration (incl. an 4634 € 5287 € Monthly remuneration (incl. an 4746 € 5249 € average performance bonus) average performance bonus) Pay for 12 months 55 608 € 63 444 € Pay for 12 months 56 950 € 62 983 € ++ holiday pay (50 % for 3196 € 3646 € ++ holiday pay (50 % for 30 3273 € 3619 € 30 days of paid holidays) days of paid holidays) ++ special payment (25 % of 1159 € 1322 € ++ special payment (25 % of the 1187 € 1312 € the monthly remuneration) monthly remuneration) Annual remuneration 59 963 € 68 412 € Annual remuneration 61 410 € 67 914 € From 2019 From 2019 ++ one-off payment 1159 € 1322 € ++ one-off payment 1305 € 1443 € 400 € 400 € 400 € 400 € Annual remuneration 61 522 € 70 134 € Annual remuneration 63 115 € 69 757 €

* Rounded to the nearest EUR * Rounded to the nearest EUR 12 13

Baden-Württemberg 35 hours/week Better off with EG 12 EG 13 Monthly base pay 4488,00 € 4780,00 € collective agreements­ Monthly remuneration (incl. 4824,60 € 5138,50 € an average performance As per collective Statutory bonus of 7,5 %) agreement Pay for 12 months 57 895,20 € 61 662,00 € Working hours per 35 hours* 48 hours ++ holiday pay (50 % for 3328,97 € 3545,56 € week 38 hours** 30 days of paid holidays) max. 40 hours*** ++ special payment (25 % of 1206,15 € 1284,63 € the monthly remuneration) Working week Monday through Monday through Friday Saturday Annual remuneration 62 430,32 € 66 492,19 € Holidays 30 days 24 days From 2019 (six weeks) (four weeks) + one-off payment 1234,20 € 1314,50 400 € 400 € Holiday pay 50 % per day off n/a Annual remuneration 64 064,52 € 68 206,69 € Christmas bonus up to 60 % depending n/a on period of employ- ment and collective bargaining area

Supplemental 27.5 % + n/a one-off payment 12.3 % base pay for (T-ZUG) skilled workers after a period of employment of six months

Overtime pay 25 - 50 % n/a

Paid time off Regulated n/a (for private reasons)

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. 14

What should I consider when Where can I get more signing an employment information?­

contract?­ ›› www.hochschulinformationsbuero.de: Here univer- sity students and graduates will find valuable tips on In principle, employment contracts can be negotiated study and work as well as information on local events freely. However, statutory minimum conditions must and contact persons. be observed. Company regulations are usually better - ›› Pay analysis for the IT and ­telecommunications especially if they are laid down in collective agreements sector: Once a year, IG Metall evaluates the (see table on the left). If your company has concluded ­remuneration in these sectors, from career entry level a collective agreement with IG Metall, for example, six to management positions. It serves as orientation for weeks of holiday apply right away, instead of the statut- pay negotiations and provides valuable ­information ory four weeks – in line with the collective agreement. about jobs and earning opportunities in the ITC sector.­ www.itk-igmetall.de The employer may only offer a contract to a candidate ›› IG Metall database on everything concerning collecti- who is exempt from a collective agreement if the job ve agreements: This is where you will find current and requirements are higher than those of the highest reliable information about income subject to collec- collectively negotiated pay category. The pay must be tive agreements, remuneration, special payments, between 15 percent and 35 percent higher than the contributions to employee capital formation, holiday, highest collectively agreed pay level, depending on the and protection against dismissal – all the things collective bargaining area.* IG Metall has negotiated for the employees in collec- tive agreements. www.igmetall.de/tarife > Tarifinfo IG Metall has compiled all the important tips on employ- ›› How do collective agreements work, what do they ment contracts in a guidebook. This guidebook is avail­ govern? Who benefits from them and which advan- able at your local IG Metall office and can be ordered tages do they have for me? How are they concluded? online: The booklet »Perspektive Tarifvertrag« (available in German) gives answers to all these questions. It is www.hochschulinformations- handy for all those who are interested in these topics buero.de/index.php?id=469 but have not yet dealt with them. It is available at your local IG Metall office. ›› WSI-Lohnspiegel: Online salary check with free * The collective agreements of IG Metall for the metal and electrical information on actual wages and salaries paid in over industries in Baden-Württemberg do not distinguish between emp- loyees covered by collective agreements and those who are exempt. 380 professions and jobs. Ongoing online survey on In practice, this means that all the regulations of collective agree- working and income conditions. www.lohnspiegel.de ments – including pay increases and working time regulations – apply to all employees in Baden-Württemberg. Strong on-site. IG Metall connects. From Flensburg to Lörrach, from Aachen to Bautzen. We are many. Join us.

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