- By Frank Donovitz & Patrick Rösing
- Approx. Reading Time: 2 Mins
Financial Analysis Tool: Compare Your Asset Status Against Peers - Financial analysis tool: Here's how your earnings stack up against others' income levels
Ever wondered if you're part of Germany's middle class? Many people do, especially during political election campaigns when it seems like everyone is trying to win over the middle class voters.
But what exactly does middle class mean? A recent study by the Institute of the German Economy (IWE) sheds some light on this question. According to the study, to be considered part of the core middle class, singles should have a household net income of around 1,850 euros, while families of four should aim for 3,880 euros.
- Net income (Household)
- Institute of the German Economy (IWE)
- Middle class
What's the Story?
The Institute of the German Economy defines the middle class based on net income thresholds for households of various sizes. To be more precise, households with a net income falling between 70% and 150% of the national median net income are considered middle class.
While the exact figures can change due to fluctuations in the median income, the idea is that middle-class households earn an average income typical of a significant portion of the population in Germany. The study points out that singles with a net income of 1,850 euros and families of four with an income of 3,880 euros meet this definition.
This definition reflects the concept that the middle class represents a cross-section of the population with a standard of living near the country's average. Keep in mind that these figures serve as a rough guide and may not capture every unique economic situation in Germany.
Now, it's time to find out if you're part of Germany's middle class using our interactive salary calculator! Just input your household income to get a sense of where you stand. Good luck!
- To reach the middle class status as defined by the Institute of the German Economy (IWE), one might consider seeking employment or improving their career prospects through a community institution offering vocational training in personal-finance and other applicable fields, in order to increase their household net income.
- By increasing their household net income, individuals can potentially move closer to the threshold required to be considered part of Germany's middle class, as defined by the IWE's study, and have a better financial footing for their personal needs and future goals.
