How high does a salary need to be to be considered rich in Germany? There is a clear answer to this question. Many are unaware that they are wealthy.
Munich – Many people do not realize how affluent they actually are. Studies repeatedly show that the subjective perception of wealth differs significantly from the statistically real wealth of Germans. The current (sixth) poverty and wealth report from the federal government, published annually, makes this evident. Many citizens believe that one can only speak of income wealth starting from a net income of around 9000 euros per month. In fact, one is considered wealthy much earlier.
From what salary is one considered rich in Germany
In Germany, the current median income is 1947 euros net (which corresponds to approximately 3000 euros gross). This means that the number of people earning below this threshold is equal to the number of those earning above it. Therefore, this net salary is exactly in the middle of all salaries. As explained in the government’s poverty and wealth report, one is considered affluent if they earn double the median income. This currently stands at 3894 euros net.
This net income would require a gross income of at least 6100 euros (tax class 1). However, those in tax class 3 can reach this magic line with a gross salary of around 5500 euros.
However, citizens perceive this quite differently. This is also broken down in the poverty and wealth report: people who consider themselves to be poor believe one must earn a net salary of 7458 euros to be considered rich. The middle class thinks this begins at 8892 euros net, and the wealthy consider income wealth to start at 9722 euros net. To clarify: to have a net salary of 9000 euros in tax class 1, one would need to earn approximately 16,000 euros gross per month.
On the poverty line, Germans estimate better: When one is considered poor
Of course, income alone is not the sole determinant of wealth. Wealth is much more important. According to a study by the Bundesbank, the poorest 20 percent of the population possess less than 6900 euros in wealth. The richest ten percent in Germany have at least 725,900 euros. The median wealth in Germany stands at 110,022 euros—meaning as many people in Germany have less than that as people have more than it.
Interestingly, Germans are much better at recognizing when one is considered poor. In the poverty and wealth report, all demographics estimate poverty at a net salary of around 1,000 euros. This closely aligns with the actual poverty line, which statistically stands at 1168 euros net. In tax class 1, this corresponds to a gross salary of less than 1800 euros. In tax class 3, a gross salary of around 1500 euros would yield approximately the same net amount.
