There are many reasons to come to Berlin, but salary isn’t one of them. A recent survey conducted by Bitkom, that is still unpublished, asked 143 IT- and Tech-startup founders how much they pay employees on average. The numbers were not encouraging.
Entry-level employees received an average of 31,400 euros (34,465 USD) a year. Employees with more work experience earned an average of 46,500 euros; individuals working in management roles earned an average of 55,800 euros.
Turns out more responsibility and experience does equate with a higher pay – even in startups.
Compared to other startup hubs, like Silicon Valley, which averages 97,309 euros, and New York, which averages 83,668 euros, the salaries look meager. However, it must be noted that there are limitations in comparing average salaries due to sample size and that the cost of living is much lower in Berlin compared to these US cities.
According to Bitkom’s numbers, Berlin’s wages are also low by Germany’s standards: Berlin’s salaries are up to eight per cent lower when compared to other German states.
The Berlin Startup Salary Report (BSSR), published in May 2016, came to a different conclusion after analyzing responses from their 3,388 respondents. They found that the average yearly pay for an entry-level employee in Berlin was 28,044 euros, which is “…notably higher than non-Berlin salaries.”
The report also noted a “sizable salary difference between male and female respondents.”
“Men are being paid significantly more than women across all job areas and experience levels both for the Berlin and non-Berlin samples,” the report said.
Bitkom’s numbers meanwhile showed that the higher up you are in the startup’s hierarchy, the less significant the wage gap becomes. The average pay of startup CEOs across all German states is 71,400 euros, three per cent more than what Berlin executives are paid.
But low salary should not be a deterrent when considering a move to Berlin. “Respondents living in Berlin are significantly happier,” according to the BSSR. Meaning the city still remains “appealing as a centre of employment.”