In general, lower salaries are paid in structurally weaker areas and there is also a city/country divide. Companies located in or near to major cities often pay more than companies in rural areas. According to the VDMA salary study, salaries are 16 to 19% higher in cities.
Special services and bonuses
In mechanical engineering, special benefits and variable salary components such as bonuses are often added to fixed annual salaries. According to the VDMA, more than 90% of companies in mechanical engineering and plant construction used employee participation in the company's profits as an instrument of remuneration policy in 2014. Over 80% also offered additional benefits. However, bonuses varied widely, ranging from one to twelve percent of annual salaries in most cases.
Pay gap in mechanical engineering
The salary differences between women and men in Germany were recorded in the Payment Monitor 2018. In mechanical engineering, employees with a relatively low annual salary (between EUR 30,000 and EUR 35,000 gross on a median basis) have an adjusted gender pay gap of 3.3%. For employees with a relatively high salary (gross median between EUR 55,000 and EUR 60,000), the pay gap rises to 7.1%. These considerations also refer exclusively to the incomes of employees without supervisory responsibilities.
Earnings of PhD graduates in mechanical engineering
Mechanical engineers with a PhD tend to be rare, as the labour market is open to university graduates without doctorates. Nevertheless, those who invest the time in a doctorate are usually rewarded financially. According to the VDMA study, qualifications generally determine salaries in mechanical engineering to a much higher degree than other aspects, such as the applicant's age.
For example, graduate mechanical engineers can expect to earn an average annual starting salary of more than EUR 50,000. Over the course of their career, this value is expected to more than double, as mechanical engineers with PhDs tend to seek well-paid management positions.
Salaries of mechanical engineers in academics
Not all mechanical engineers aspire to a career in industry, as some are attracted to research and teaching. However, according to a report by ingenieur.de dated 1 January 2013, only about 4% of all engineers aspire to enter the academic field. Jobs are offered at universities and non-academic institutions, especially in industry-related research institutions. Jobs in science are aimed at research associates and professors.
The work of professors is paid according to the W salary band. There are three levels: The lowest (W1) regulates the income for junior professors, while W2 and W3 salaries apply to all other professors with civil servant status. University of applied sciences professors and their university colleagues are paid at salary grades W2 and W3. However, W3 at universities of applied sciences is very rare.
Salaries differs significantly from one federal state to another - by more than EUR 1,000 a month in the case of W3 - as demonstrated in the salary ranking of the German University Association (DHV) 2018. Bavaria is a frontrunner for basic W3 salaries at EUR 7,017.65 (more than EUR 84,000 per annum), while salaries are much lower in Thuringia at EUR 6,100 per month (more than EUR 73,000 per annum). The basic salary is usually boosted with individual benefits.
Researchers at a university or non-university research institution are usually paid according to pay grade 13. This is true for postdocs, PhD students and secondary school teachers in their first position. Their salary is collectively established, but also depends on experience levels. Read more in the guide "Academic salary in Germany".
