Hi!

Let me tell you about myself in brief. After completing my Diploma in Electrical Engineering in 1996, I worked for 5 years in Hardware & Embedded. Then I completed my Bachelors of Engineering in Electronics &Telecommunication in 2005. After my B.E., I am working on FPGA & CPLD based development. Currently in my organization in India my CTC is approx 600K (INR) / Annum.
Currently I got an offer from a Munich based small organization, who have offered me a CTC of 39K (Euro) / Annum, that is 3250 Euro per month (before tax deduction). Regarding relocation they will only reimburse my Flight tickets. Though I have already applied for my job visa on 15th Oct 08 and in parallel the company has applied for my work permit in Munich. My wife is supposed to file her visa once after I join there.
I just want to get the view of you forum members about the living standard in Munich. After my tax deduction I am going to get approx 2000Euros in hand. I went through 1-2 websites; I found the rent for a 50 Sq M apartment is approx 800-900 Euros. I want to confirm – what ever amount I am going to get is sufficient enough for us to live a moderate life there. Can I save some amount from that?
Also I bit confused after observing their way of communication. Their way of work is very slow. Our discussion started since Feb 2008 and it took them approx 7-8 months to give the offer letter. Still they are very irregular in acknowledging my mails. Though I had worked with one of the partner of this company before as my client – at that time also I had observed the lack of promptness in their communication. I heard that this is a common culture of Europe – Is it so?
Please advise is it a wise decision to join there in today’s global economic scenario?

Regards,
Sarkar

Hi,

considering that you have several years of experience, I think that your salary is not very good. also Munich is an expensive city.

The salary here depends (of course) of the skills and market demand. I do not know your field, maybe in web sites like monster.de you could find some job offers with salary information to give you a better perspective.

just my 5 cents.

Alex

@ Sarkar

1. The salary 39 K Euros is too less after 5+ years of expierence.
2. Yes, Munich is very expensive city. its true, 50 Sq M apartment is approx 700-900 Euros. The amount which you will get in your hand, will be fine to live a moderate life , savings will be difficult but you can still save around 500 Euros , if you do not go out eating and cook at home.

3. Well, i would not say that it is a common culture, that companies do not give a prompt reply. As of my experience in some companies here in Germany ( over 5+ years), companies do give a prompt reply.

Hi Sarkar,
39K is indeed a bit less as expected to your experience. For Munich with your experience of years, i would expect around 52-60 K euros PA. I understand that with 39K also a family can still live nicely, but it depends on your personal lining style. I guess with 39K PA after tax deduction you will get around 1700-1900 Euors per month which could be a bit tough to save in a place like Munich. However, if you decide to claim back you tax at the end of the year, then you will have good savings, but that is upto you to decide.

Hi,

Thanks for the prompt replies. For your information – Though I am having 7+ yrs of experience, but as a FPGA Design Engineer my relevant experience is approx 3 years. I went through some job sites – most of them are not giving any figures for salary. In some cases I got they are offering approx 40Euro/hour and one case I found where they are offering annual package 0f approx 50K Euros/ Annum.

Initially I had a conversation regarding my salary; at that time my employer told me that they had to show that they are getting me at a salary in which they can’t get a local person, then only I am going to get the work permit. How much this fact is true?

As per “UMTS11”, if I can save 400-500Euros per month I think for the initial period it will be fine with me. As from India its not an eassy to find a job in Europe. If I am going to use this oppurtunity as a stepping stone - whether it’ll be a wrong decission? After completing my 6 months prohabation period I can ask my employer to give a hike, else after a year I can then try for some other oppurtunity while working there – No matter to me whether its in germany or in any other country in Europe. How easy is it to find a job there in Europe from Munich?

Thanking you in anticipation.

Regards,
Sarkar

It is indeed correct that, they(company) should show that there is no one available for that salary and with your given skills in EU.

May be that is one of the reasons that they have this salary package. Another is, they are also benefiting from this as a company.

If the project on which you are going to work is interesting to you, then taking this offer would be reasonable though the salary is not quite attractive. A trade off between your self satisfaction on your job and the salary that you get for that work.

All the best !

Dear Sarkar,
As I see you are taking this opportunity as a stepping stone in your career, in that case you are doing the right decision. Go ahead and have this job, increase your experience and at later stage you can have a salary package which you deserve. All the best !!!

Sarkar r u from delhi?

Saving anything with such salary in Munich with family will be hard job...

I still not able to save with more than above salary and living in berlin :-)

Well I lived in munich also and my account was in minus by the end of month with 1900 netto where 950 was given only in haus rent.

So the point is .Its all depends on ur lifestyle 39k is more than average salary in germany and im sure these ppl can still save few euros.

But if u r planing to buy a Mahal in India then sure its not possible with this amount.

Hi,

According to my budget for haus rent I am not going to exceed 800 Euro. Though my employer has told me that they will help me to find a 2 room Appt within a range 600-700 Euros. If required we are going to have a single room furnished Appt. And obviously we have plan to cook our own food. I agree with you guys that my saving will not be that much. Also I don’t deserve a very hifi life – just a moderate life like what I am living here in India currently with approx 40K / month. But I want to be sure that with this salary my account should not go in minus.
Also it will be great help to me if any one can opine on the job oppurtunities one can have after working there for 1-2 years.

Dear Deathinc,
I am from Pune. May I know why U asked me about my place?
U have mentioned – “Well I lived in munich also and my account was in minus by the end of month with 1900 netto where 950 was given only in haus rent”. May I know it’s a story of how long back?

Regards,
Sarkar

@Sarkar

It's good that your company has promised to support you finding a decent accommodation within 700 euros. If they are talking about “furnished” apartments, then you have a nice deal. For couple leading a “moderate” life in Germany, monthly household expenses shouldn’t exceed 600 euros. That leaves you with a comfortable margin of at least 500 euros – fair enough so long as you don’t have any immediate plans to extend your family :-).

Cheers.

Considering your work experience the Salary of 39K is very less and for city like Munich i would say its not a good amount.I would say even if you live with a tight budget you will finally be able to save less than what you are saving in India.Moving to Germany is also different as compared to US or UK,here without basic German language you might find it difficult and then also moving your family.The job situation is also worse and finding another jobs takes months here even if you get a call for first round of interview the second round may be after 4months.I myself know many Indian friends who worked with Embedded Systems and lost job and waited for months on their savings looking for another job.
Finally its your job satisfaction,security and what you earn which counts,if you think that is better than India then you should go ahead.

Hi Sarkar

Your history is VERY similar to the history of a very good friend of mine.

The offer of the company, the "package" and the tasks... is it really in Munich??? This is a very important question because as all the guys told you, Munich is freaking expensive, BUT if you are in another city CLOSE to Munich the history seems to change drastically.

I guess you are also missing some important expenses of the beginning of the life here in Germany, like even if you rent a flat for 600/700 Euro is pretty normal here to pay IN ADVANCE untill 5 months of rent (2 or 3 as caution, 1 or 2 as "Provision" or commision for the real estate company).

Another big issue, overall nowadays, is at the beginning you will have six months as probation period. In this period of time they can fire you with a very short time of notice and as your visa will be tied to your company at the beginning, this can be an issue, considering the companies itself depends of bigger companies (a lot of them car companies...) that are not that stable now.

Those factors are not really concerning BUT you need to take them into account, more if you come with your family.

The money you will get is not that bad seeing this from abroad but is a little bit few here BUT you need to consider most of us should pay a price to enter the german market... sad but true.

Good luck

Hi,

My employer is going to give me a salary of 3250 Euro / month. In the forum according to most of you, my net take home will be approx 1900 Euro/ month after all deduction. But when I tried to calculate my tax using the following link (about which I came to know through the forum), I found my net take home will be 2273.09 Euro / month considering myself in category III, after all deduction. If I am wrong then please clarify.

Gross Salary: 3250.00 Euro

Wage Tax: 302.16 Euro
Solidarity Surcharge: 16.61 Euro
Sum of the Taxes: 318.77 Euro

Obligatory Pension Insurance: 323.38 Euro
Unemployment Insurance: 53.63 Euro
13.3% Health Insurance : 245.38 Euro
(+ 0,9% from the Employee alown)
Nursing Care Insurance: 35.75 Euro
Sum of the Social Security Contributions: 658.14 Euro

Net Salary: 2273.09 Euro

http://www.connectingindians.com/index.php?name=extraModule&file=GermanTaxCalculator

Regards,
Sarkar

@sarkar,

You have calculated using Steuer Klass 3 instead of Steuer Klass 1. In your present situation it will be Klass 1 since your wife is not living with you. But once she comes to germany you can change it to Klass 3 where you get little more in the hand.

Yes till your wife is not here you are in Class I in which case you get less than 1900 and with Class III your net earning will be 2050 also next year for Health Insurance you pay more.
If you also bring along your wife then minimum you should be ready to spend 800 for flat and between 1700-2000 as advance which you deposit to get a flat.
Then additional expense for the furnishings if you get a furnished flat then rent goes above 1000 per month.
Then the travel to work,food and additional expenses and in all you may be able to save 400-600 per month more than that one can easily save in India.
Also don't be shocked with the price of food like a kg tomatoes costs 2-3 Euros
If this offer was for Berlin then i would say go ahead as the cost of living there is half of city like Munich.

Considering your backround I would say that you could manage to pay for the housing costs and the daily living costs are pretty low as well in my opinion. This site gives more detailed info about the details I meant https://teleport.org/cities/munich/cost-of-living/
Best wishes
Sheela