Hourly wage in Germany: how to calculate it correctly
The 4.33 factor, gross vs. net, and typical benchmarks
The hourly wage is one of the central figures in German employment law. It serves as the basis for calculating overtime pay, vacation pay, and the statutory minimum wage. Anyone who receives a monthly or annual salary needs to know their hourly wage in order to compare job offers and negotiate compensation on solid ground.
The common formula is: Hourly wage = monthly salary ÷ (weekly hours × 4.33). The factor 4.33 corresponds to the yearly average of weeks per month (52 ÷ 12 = 4.333…) and is well established in German wage law. It accounts for the varying length of months and provides a consistent comparison figure. Some employers alternatively use 4.35 (365 days ÷ 12 ÷ 7) – the difference is small, but should be clearly defined in the employment contract.
Important: our calculator computes exclusively the gross hourly wage. The actual net amount depends on tax class, church tax, age (pension insurance), health insurance contribution, and other factors. Typically, 55–70% of the gross salary remains as net pay after all deductions. For the net calculation, we recommend our gross-net calculator.
Freelancers and self-employed people also need the hourly rate, which covers not only wages but also social security costs, downtime, business expenses, and profit margin. The calculated hourly rate is typically 50–100% higher than an employee's hourly wage.