STARTING SALARIES FOR GRADUATES IN 2019 - Information provided by IG Metall for the metal and electrical industries

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STARTING SALARIES FOR GRADUATES IN 2019 - Information provided by IG Metall for the metal and electrical industries
STARTING SALARIES FOR
­G RADUATES IN 2019
      Information provided by IG Metall
    for the metal and electrical industries

                                              IG Metall
                                                 Mitte
3

How much                                                     Your annual pay matters!

can you earn?                                                Details are key: »Annual pay« is quite often understood
                                                             differently, and the definition of it depends on the com-
                                                             pany you will be working for and what you negotiate in
                                                             the employment contract. Many companies pay twelve
                                                             monthly pay packets, others grant an additional 13th
                                                             pay packet. In companies bound by collective agree-
Starting salaries for graduates:                             ments there is also a performance bonus – an average
Job tips and information                                     of four to 15 percent of the pay depending on the col-
                                                             lective agreement, as well as other collective benefits,
How much can you earn when starting your career?             such as holiday pay, special payments (Christmas bo-
What do you need to consider when concluding an em-          nus) and contributions to employee capital formation.
ployment contract? This is where IG Metall comes into        In addition, »voluntary bonuses« can be paid. These
play, providing you with information to get your career      should, however, be recorded in writing and – in the
off to a good start.                                         case of variable bonuses – be worded as precisely as
                                                             possible.
What does »pay« mean?

A »fixed« portion of your pay is usually your set mon-
thly salary plus additional payments such as perfor-
mance bonuses, holiday pay, special payments and                From 2019, the new collective agreement on
the like. If companies and employees are bound by               supplemental money paid as a one-off payment
a collective agreement, such benefits must be paid              (TV T-ZUG) will apply in companies bound by col-
mandatorily. The situation is different if there is no co-      lective agreements. The one-off payment (T-ZUG)
verage and for exempt employees (AT-Angestellte/r): in          consists of two parts: firstly, an amount of 27.5
this case, the benefits vary from company to company.           percent of the individual average monthly pay,
                                                                and secondly, a payment amounting to 12.3 per-
In general, promises made by companies, e.g. to provi-          cent of the base pay for skilled workers (EUR 400
de a company car or a company mobile phone, are not             in 2019). Certain employee groups, for example
guaranteed by the employment contract and can thus              employees raising children or caring for relatives,
be changed unilaterally by companies.                           now have a new option: under certain conditions,
                                                                they can choose eight additional days off per
                                                                year instead of the supplemental one-off pay-
Tip: We always recommend talking to the                         ment of 27.5 percent.
works council or local IG Metall experts.
4                                                                                                                      5

                                                               Why is working for a company bound by collective
 Working time is crucial                                      ­a greements beneficial?

 In the metal and electrical industries, the 35-hour work     In general, the remuneration level in companies bound
 week is considered normal for full-time employees.           by collective agreements is higher overall. The table
 From January 1, 2019, employees working in the metal         below shows that engineers earn 18.5 percent more
 and electrical industries will be entitled to reduced        and economics graduates over 24.6 percent more than
 full-time work under collective agreements. With this        their counterparts in companies not bound by collective
 new regulation, employees can reduce their working           agreements. The IG Metall collective agreements also
 week to a minimum of 28 hours for the duration of six        ensure a high level of pay dynamics for its members. In
 to 24 months. After that, the normal 35-hour work week       the first year after entering the labour market, remune-
 applies again automatically – alternatively, employees       rations increase by an average of 10 percent without any
 can continue to work reduced hours. To benefit from          additional individual negotiations. In addition to the
 this arrangement, employees must have worked in the          increases due to the duration of employment there are
 company for at least two years and have submitted a          regular pay rises after successful wage negotiations.
 written request to the employer at least six months in
 advance.                                                     In principle, only unionised employees, i.e. IG Metall
                                                              members in the metal and electrical industries, are
 With the concept of reduced full-time, IG Metall has en-     entitled to collective bargaining benefits.
 forced the right of employees to return to full-time work.
 Employees can reduce their working hours according
 to their personal needs and return to a normal full-time
 work week later.
6                                                                                                                                                       7

Annual income of university graduates with work experience
in the metal and electrical industries of up to three years                 Collectively agreed starting
                   Gross annual pay in EUR
                   (without bonuses and ­special
                                                         Higher salary in
                                                         companies bound
                                                                            remuneration – IG  ­M etall
                                                                            remuneration framework
                   payments)                             by ­collective
                                                         ­bargaining
                                                          ­agreements
                      25th
                    ­percentile   Median
                                             75th
                                           ­percentile    in Euro   in %
                                                                            ­agreement for the metal and
    Engineers,       37 995       45 414    55 961        8 386     18.5     electrical ­i ndustries from
    Mathema-
    ticians and
    Physicists
                                                                             ­April 1, 2018*
    Economists       36 459       42 453   52 898         10 445    24.6
Source: www.lohnspiegel.de – WSI-Lohnspiegeldatenbank*                      *     Metall-Entgelt-­Rahmen-Abkommen, ERA –
The respondents have different working hours per week. For the                    for further information on other bargaining districts, go to :
calculation of monthly pay, the earnings data are broken down to an               www.hochschulinformationsbuero.de/tarife
hourly wage. In a second step, the monthly pay is calculated based
on 35 hours per week. The median value indicates that 50 percent of
the respondents earn more and 50 percent earn less than this value.
Database 2011/1 – 2017/05.
In companies bound by collective agreements, the median value for           Schleswig-Holstein / Nordwest-Niedersachsen**
engineers is EUR 53,800 and that of economists is EUR 52,898 per
year. The median values in the table show that engineers earn 18.5
                                                                            35 hours/week
percent more and graduates of economics even 24.6 percent more                                                            EG 9G               EG 10G
than their counterparts in companies which are not bound by collec­
tive agreements. Deviations in the table are due to rounding.                   Monthly base pay                         4655 €                5281 €
                                                                                Monthly remuneration                     4934 €               5598 €
What else do I need to know?                                                    with performance bonus
Wages differ from region to region; the company’s size                          Pay for 12 months                       59 212 €             67 174 €
also plays a role in determining wages. They tend to                            ++ holiday pay                           3403 €               3861 €
be higher in Western and Southern Germany than in                               ++ special payment                        2714 €              3079 €
Northern and Eastern Germany.                                                      (at least 55 %)
                                                                                Annual remuneration                    65 329 €              74 114 €
The following tables provide an exemplary overview of
                                                                                From 2019
the typical annual remunerations for university gradua-
                                                                                ++ supplemental one-off                   1357 €               1539 €
tes in the metalworking industry when working for a                                payment                                400 €                 400 €
company bound by collective agreements in an occupa-                            Annual remuneration                    67 086 €             76 053 €
tion which corresponds with their education/training.

    *   Lohnspiegel (»wage mirror«) is part of an international research    ** Rounded to the nearest EUR
        project supervised by the Institute of Economic and Social Re-
        search (WSI) within the Hans-Böckler-Foundation.
8                                                                                                    9

Berlin West*                                      Hessen und Rheinland / Rheinhessen
35 hours/week                                     35 hours/week
                                         EG 10                                               EG 9
    Monthly base pay                    4149 €    Monthly base pay                      4458,00 €
    Monthly remuneration (incl. an      4564 €    Monthly remuneration (incl. an        4903,80 €
    average performance bonus)                    average performance bonus)
    Pay for 12 months                  54 768 €   Pay for 12 months                    58 845,60 €
    ++ holiday pay (50 % for 30 days    3148 €    ++ holiday pay (50 % for 30 days       3381,93 €
       of paid holidays)                             of paid holidays)
    ++ special payment (25 % of the      1141 €   ++ special payment (25 % of the        1225,95 €
       monthly remuneration)                         monthly remuneration)
    Annual remuneration                59 057 €   Annual remuneration                  63 453,48 €
    From 2019                                     From 2019
    ++ one-off payment                   1255 €   ++ one-off payment                     1348,55 €
                                          400 €                                          400,00 €
    Annual remuneration                60 712 €   Annual remuneration                  65 202,03 €

* Rounded to the nearest EUR
10                                                                                                                   11

 Niedersachsen*                                             Bayern*
 35 hours/week                                              35 hours/week
                                        EG 11A    EG 12A                                          EG 9       EG 10
     Monthly base pay                   4213 €    4806 €     Monthly base pay                   4163 €     4604 €
     Monthly remuneration (incl. an    4634 €     5287 €     Monthly remuneration (incl. an     4746 €     5249 €
     average performance bonus)                              average performance bonus)
     Pay for 12 months                55 608 €   63 444 €    Pay for 12 months                 56 950 €   62 983 €
     ++ holiday pay (50 % for          3196 €     3646 €     ++ holiday pay (50 % for 30        3273 €     3619 €
        30 days of paid holidays)                               days of paid holidays)
     ++ special payment (25 % of        1159 €     1322 €    ++ special payment (25 % of the     1187 €     1312 €
        the monthly remuneration)                               monthly remuneration)
     Annual remuneration              59 963 €   68 412 €    Annual remuneration               61 410 €   67 914 €
     From 2019                                               From 2019
     ++ one-off payment                 1159 €     1322 €    ++ one-off payment                  1305 €     1443 €
                                        400 €       400 €                                         400 €      400 €
     Annual remuneration              61 522 €   70 134 €    Annual remuneration               63 115 €   69 757 €

 * Rounded to the nearest EUR                               * Rounded to the nearest EUR
12                                                                                                                                   13

 Baden-Württemberg
 35 hours/week                                                  Better off with
                                                                collective ­a greements
                                          EG 12         EG 13
     Monthly base pay                4488,00 €     4780,00 €
     Monthly remuneration (incl.     4824,60 €      5138,50 €
     an average performance
                                                                                         As per collective          Statutory
     bonus of 7,5 %)
                                                                                         agreement
     Pay for 12 months              57 895,20 €   61 662,00 €
                                                                    Working hours per    35 hours*                  48 hours
     ++ holiday pay (50 % for        3328,97 €      3545,56 €
                                                                    week                 38 hours**
        30 days of paid holidays)
                                                                                         max. 40 hours***
     ++ special payment (25 % of      1206,15 €     1284,63 €
        the monthly remuneration)                                   Working week         Monday through             Monday through
                                                                                         Friday                     Saturday
     Annual remuneration            62 430,32 €   66 492,19 €
                                                                    Holidays             30 days                    24 days
     From 2019
                                                                                         (six weeks)                (four weeks)
     + one-off payment               1234,20 €        1314,50
                                        400 €          400 €        Holiday pay          50 % per day off           n/a
     Annual remuneration            64 064,52 €   68 206,69 €       Christmas bonus      up to 60 % depending       n/a
                                                                                         on period of employ-
                                                                                         ment and collective
                                                                                         bargaining area

                                                                    Supplemental         27.5 % +                   n/a
                                                                    one-off payment      12.3 % base pay for
                                                                    (T-ZUG)              skilled workers after a
                                                                                         period of employment
                                                                                         of six months

                                                                    Overtime pay         25 - 50 %                  n/a

                                                                    Paid time off         Regulated                 n/a
                                                                    (for private reasons)

                                                                    Pay increase         Negotiated annually        n/a

                                                                *     Western German metal and electrical industries
                                                                ** Eastern German metal and electrical industries
                                                                *** Possible for a maximum of 13 or 18 percent of the employees
                                                                    based on individual agreements; the pay has to be adjusted
                                                                    accordingly.
14

  What should I consider when                                             Where can I get more
  signing an employment                                                  ­i nformation?
 ­contract?                                                              ›› www.hochschulinformationsbuero.de: Here univer-
                                                                            sity students and graduates will find valuable tips on
 In principle, employment contracts can be negotiated                       study and work as well as information on local events
 freely. However, statutory minimum conditions must                         and contact persons.
 be observed. Company regulations are usually better -                   ›› Pay analysis for the IT and ­telecommunications
 especially if they are laid down in collective agreements                  sector: Once a year, IG Metall evaluates the
 (see table on the left). If your company has concluded                     ­remuneration in these sectors, from career entry level
 a collective agreement with IG Metall, for example, six                     to management positions. It serves as orientation for
 weeks of holiday apply right away, instead of the statut-                   pay negotiations and provides valuable ­information
 ory four weeks – in line with the collective agreement.                     about jobs and earning opportunities in the ITC
                                                                             ­sector. www.itk-igmetall.de
 The employer may only offer a contract to a candidate                   ›› IG Metall database on everything concerning collecti-
 who is exempt from a collective agreement if the job                         ve agreements: This is where you will find current and
 requirements are higher than those of the highest                            reliable information about income subject to collec-
 collectively negotiated pay category. The pay must be                        tive agreements, remuneration, special payments,
 between 15 percent and 35 percent higher than the                            contributions to employee capital formation, holiday,
 highest collectively agreed pay level, depending on the                      and protection against dismissal – all the things
 collective bargaining area.*                                                 IG  Metall has negotiated for the employees in collec-
                                                                              tive agreements. www.igmetall.de/tarife > Tarifinfo
 IG Metall has compiled all the important tips on employ-                ›› How do collective agreements work, what do they
 ment contracts in a guidebook. This guidebook is avail­                      govern? Who benefits from them and which advan-
 able at your local IG Metall office and can be ordered                       tages do they have for me? How are they concluded?
 online:                                                                      The booklet »Perspektive Tarifvertrag« (available in
                                                                              German) gives answers to all these questions. It is
                                        www.hochschulinformations-            handy for all those who are interested in these topics
                                        buero.de/index.php?id=469             but have not yet dealt with them. It is available at
                                                                              your local IG Metall office.
                                                                         ›› WSI-Lohnspiegel: Online salary check with free
 * The collective agreements of IG Metall for the metal and electrical        information on actual wages and salaries paid in over
 industries in Baden-Württemberg do not distinguish between emp-
 loyees covered by collective agreements and those who are exempt.            380 professions and jobs. Ongoing online survey on
 In practice, this means that all the regulations of collective agree-        working and income conditions. www.lohnspiegel.de
 ments – including pay increases and working time regulations – apply
 to all employees in Baden-Württemberg.
Strong on-site.                                                 IG Metall connects.
From Flensburg to Lörrach, from Aachen to Bautzen.              We are many. Join us.

                   On-site –
                   throughout Germany.
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                    igmetall.de/vor-ort                           flickr.com/igmetall     youtube.com/igmetall

                         over 135 000
   over 150              active union representatives
   local offices

                               over 2.2
                               million members
 over 53 000
 members of works council

                    over 18 000
                    plants in 30 branches

                                                        Yes. Count me in.
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       IG Metall Vorstand                               Give the membership declaration to IG Metall
       FB Mitglieder und Erschließung                   works council, IG  ­M etall union representatives
       60519 Frankfurt am Main                          or IG  ­M etall on-site. Or just sent back.
MEMBERSHIPDECLARATION
Please complete in block letters and send to your local office or to IG Metall in                                               ** Membership number, please insert in case of change
60519 Frankfurt am Main. * Mandatory information ** To be completed by IG Metall                                                     of details                                                               Membership start date
You can complete this form online at: www.igmetall.de/beitreten
                                                                                                                                                                                                                D D                  M M                       Y   Y     Y        Y
                               Last name *                                                               First name *                                                                                   Date of birth *
Per so nal d ata

                                                                                                                                                                                                           D D                    M M                          Y   Y     Y        Y
                               Country * Postal code *                Town / City *                                                                                                                     Gender *                Nationality *
                                                                                                                                                                                                           female
                                                                                                                                                                                                           male
                               Street *                                                                                      House number *             Phone number          work        personal

                               Mobile     work      personal                                                                                            Email     work        personal

                               Employed at company / postal code / city                                                                                 Profession / occupation / course of study / vocational training
Emp loyment i nfo r mati o n

                               Type of membership    Full-time      Part-time      Self-employed        Apprentice                                   School pupil, university student              Retrainee              Integrated degree program
                                                            Temporary workers / Contract work; name of company
                                  Fixed-term employment     of deployment                                                                               Training / Comparable institution / University                                   from                      to

                               Approached by (last name, first name) or marketing team                                                                  Membership number of referrer (if applicable)              Gross income                                    Fee
                                                                                                                                                                                                                      Gross monthly income

                               IBAN*
Bank details

                                 D E
                               BIC*                                                                            Bank / Branch                                                                      Account holder

Membership declaration:                                                                                                                                                                                                    Consent to the transfer of my personal data to the bank for
                                                                                                                                                                                                                           the purpose of processing the SEPA direct debit. I herewith
I herewith join “Industriegewerkschaft Metall”, “IG Metall” for short, and accept the statutes of this trade union. I herewith confirm the                                                                                 consent to IG Metall disclosing my personal data (particularly name,
correctness of the details about myself, which I have made available to IG Metall for the purposes of data collection with regard to my                                                                                    IBAN / BIC, amount), which may disclose my trade union member-
                                                                                                                                                                                                                           ship, to the implementing payment service provider(s) for the pur-
enrolment as a member.                                                                                                                                                                                                     pose of processing the SEPA direct debit. According to current data
                                                                                                                                                                                                                           protection law, trade union membership is a specially sensitive piece
                                                                                                                                                                                                                           of personal information which is specially protected. The transfer of
Data protection notice: My personal data is collected, processed and used by IG Metall and its union             SEPA direct debit (recurring direct debit)                                                                the aforementioned data is a precondition for IG Metall to be able to

                                                                                                                                                                                                                                                                                                    Stand 25.05.2018 / Eng lis ch
shop stewards for the purpose of setting up and administrating my membership in compliance with                  IG Metall creditor identifier: DE71ZZZ00000053593                                                         debit the membership fees by SEPA direct debit in accordance with
the data protection provisions of the EU General Data Protection Regulation (GDPR) and German data               Mandate reference: membership number01                                                                    the Statutes. My consent forms the legal basis for data processing
protection law (BDSG). Within these specified purposes, my data is only disclosed and used for the               SEPA direct debit mandate: I herewith authorize IG Metall to debit my bank account on the agreed due      for the aforementioned purpose. My consent is voluntary. I have the
performance of union responsibilities by persons specially commissioned for these purposes. The data             date by way of direct debit with the membership fee payable by me in accordance with Section 5 of the     right to revoke this consent at any time with effect for the future. A
is not shared with third parties, unless I have given my specific consent. This data is not disclosed to any     Statute of 1% of my monthly gross income. Simultaneously, I instruct my bank to authorize the debiting    revocation does not affect the lawfulness of any processing which
other parties for the purposes of marketing. The European and German data protection rights apply as             transactions in my bank account requested by IG Metall.                                                   has taken place up to the time of revocation on the basis of my con-
amended. More information about data protection is available at https://igmetall.de/datenschutz-dok.             Please note: I may request a refund of the debited amount within eight weeks of the day of debiting of    sent. The information document on the processing of personal data,
If I would prefer a printed version of the data protection information, I can request this at datenschutz@       the account. The terms and conditions agreed with my bank apply. I will inform IG Metall without undue    available at https://www.igmetall.de/datenschutz-dok, contains
igmetall.de.                                                                                                     delay of any changes in my details.                                                                       further information on data processing.

Pl ace / date / signature                                                                                        P lac e / d at e / s i gna tu r e                                                                         P l a ce / da te / s i gn a tur e
Englisch

                                                           and Labour:
                                                                                                                                                                                                             Good people.
                                                                                                                                                                                                             Strong performance.
                                                                                                                                                                                                               Issuer: IG Metall Vorstand | FB Mitglieder und Erschließungsprojekte | www.igmetall.de | Date: May 2015 | Photo: IG Metall

                                                                                                                                                                                                              As a member,
                                                                                                                                                                                                              you’re better off.
                                                                                                                                                                There are many reasons to be in IG Metall.
                                                                                                                                      Issuer: IG Metall Vorstand | FB Zielgruppenarbeit / FB Mitglieder | www.igmetall.de | Date: April 2017

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