Wage Gap Between German and Foreign Workers in Germany Remains at 23.6% in 2025
Median monthly wages in Germany show persistent disparities between German nationals and foreign employees, highlighting challenges in labor market integration.
The wage disparity between German and foreign full-time employees in Germany stood at 23.6% as of the end of 2025, according to data released by the Federal Ministry of Labour and Social Affairs (BMAS). The median gross monthly salary for German workers reached €4,396, while foreign workers earned a median of €3,358.
Persistent Wage Disparities and Labor Market Implications
This wage gap aligns closely with figures reported since 2020, when the difference ranged between 23.1% and 25.5%. Although median salaries have increased for both groups, the relative wage gap has shown little improvement over recent years.
Additionally, the percentage of foreign full-time employees earning low wages is significantly higher than that of their German counterparts—30.6% compared to 12.3%. This disparity underlines ongoing structural challenges in integrating foreign workers into higher-paying roles and sectors.
"The wage gap is largely attributed to immigrants being less represented in high-paying industries and positions," noted an analysis by the Institute for Employment Research (IAB).
The IAB analysis highlights that native Germans more frequently hold jobs in sectors or roles with higher remuneration, whereas immigrants tend to be concentrated in lower-paying positions. This segmentation contributes substantially to the persistent earnings gap.
The Federal Employment Agency further emphasizes that wage levels are strongly influenced by education, qualifications, and professional experience. In 2025, employees without vocational qualifications earned a median monthly salary of €3,133. Those with recognized vocational qualifications earned €4,069, while university graduates commanded a median salary of €6,146.
From a corporate and executive perspective, these findings have important strategic implications. Businesses aiming to diversify their workforce and improve inclusivity must consider targeted training and development programs that enhance the qualifications of foreign employees. Additionally, board-level discussions may need to address how to mitigate wage disparities to foster equitable work environments, improve employee retention, and optimize talent utilization.
As Germany continues to rely on foreign labor to meet workforce demands across sectors, understanding and addressing these compensation gaps remain critical for sustainable economic growth and social cohesion.
