Indian workers in Germany earned 29% more than locals: Study explains why

Indians in Germany: Strong representation in MINT roles has pushed Indian professionals to the top of Germany's pay ladder, according to an IW analysis

Indian workers in Germany earned around 29 per cent more than their German counterparts in 2024, according to a study published on Friday by the German-language business newspaper Handelsblatt. The analysis, conducted by the employer-linked Institute of the German Economy (IW), found that Indian employees recorded a median gross monthly income of €5,393 (Rs 568,900), compared with €4,177 (Rs 434,000) for German workers.

 

The authors linked the higher earnings of Indian workers to their strong presence in technical and academic roles across the German economy.

 

How do the numbers stack up?

 

The Institute of the German Economy said foreign workers overall earned a median gross monthly wage of €3,204.

 

 

Its survey showed that Indian workers recorded the highest median pay among major foreign nationalities, reaching €5,393 in 2024. They were followed by Austrian workers at €5,322, US nationals at €5,307, and Irish nationals at €5,233.

 

German workers, by comparison, earned a median of €4,177 during the same period. 

 

Why Indian workers earn more

 

The study points to the concentration of Indian professionals in high-paying MINT roles — mathematics, IT, natural sciences, and technology, including engineering.

 

• The number of Indians working in MINT professions has risen nearly ninefold since 2012 to more than 32,800

• Around one-third of full-time Indian workers aged 25 to 44 are employed in MINT occupations

 

The report also links the trend to a steady rise in Indian students choosing Germany for higher education.

 

Many students completed their degrees, remained in the country, and moved into research and innovation roles. Patent applications involving inventors of Indian origin increased twelvefold between 2000 and 2022, the study found.

 

How much does Germany need Indian workers?

 

“Without skilled immigration, growth in the German economy would hardly be possible today – especially in the STEM professions and in terms of innovative strength,” said IW expert Axel Plünnecke. Skilled immigration from India is “a particular success story,” he added.

 

Since 2012, Germany has stepped up recruitment of skilled workers from outside the European Union, with a focus on academic and technical professions. In 2024, the government led by then Chancellor Olaf Scholz passed several measures to encourage immigration from India.

 

The institute said higher wages among Austrian and US workers also reflected their concentration in economically strong urban regions where pay levels are higher.

 

The analysis covered nationalities with more than 5,000 full-time employees in Germany and drew on data from the Federal Employment Agency.

 

Labour shortages and economic pressure

 

Germany is facing a tightening labour market alongside a rapidly ageing population. Projections point to a shortfall of around 7 million skilled workers by 2035.

 

At present, about 700,000 vacancies remain unfilled. This has pushed the country’s economic growth potential down to about 0.7%, from roughly 2% in the 1980s. It could fall further to 0.5% if the gap is not addressed, according to German Economy Minister Robert Habeck.

 

Migration will be central to closing that gap, Habeck has said.

 

Tapping into the international student talent pool

 

One route under discussion is retaining international students after graduation.

 

According to the Federal Statistical Office, around 43,000 Indian students are enrolled in German universities. International students account for about 14% of all students nationwide, said Michael Flacke, spokesperson for the German Academic Exchange Service.