An MBA degree is an investment one needs to think about carefully before committing vast sums of money and time to complete a degree. Whilst in the past, we covered the subject of return on investment with MBA degrees, this time I would like to specifically look at the earnings post-MBA graduation. It’s an important point to consider in one’s decision to study for an MBA degree in Germany, Europe and anywhere else. After all, studying for an MBA degree is often motivated by willingness to raise one’s earning potential. We will look at the prospects, but also factors that affect the earnings to give you a better idea of what to expect and what to consider when it comes to post-graduation financial ambitions.
As MBA degrees are not sponsored by full scholarships and are not falling under the remit of free education, it is important to realize that the investment one makes, better pay itself back sooner rather than later. Although a certain level of earnings post- graduation is never guaranteed, completion of MBA studies in general, acts as a catalyst for career growth and increase in earnings. The potential to earn more comes with the skillset one acquires with the degree, and the institution profile i.e. established schools of applied science graduates will be seen as more competently prepared for executive level jobs in comparison to schools that “sell” places on programs for a low price – the compromise being evident here. Salary for an MBA in Germany is also quite strongly attached to the institution one studies at, despite the country is perhaps not so strongly associated with MBA studies that originate from the United States. It is there where competitiveness and potential increases in salary are the highest, with many reputable institutions offering a large selection of MBA degrees. MBA studies in Germany remain a niche, but selecting the right study program, will almost certainly improve employability prospects and the potential salary.
What does an MBA graduate earn in Germany?
One of the most frequently asked questions by MBA applicants and graduates alike is “What does an MBA graduate earn in Germany?”. This is a justified question considering a hefty investment one has to make but also one that’s not easy to answer. Salaries depend on combination of factors including:
- Location
- Professional Experience
- Industry or Sector
- Level of Responsibility (budgetary, team or project responsibilities)
- Company Size
These are the most common determinants of salaries for fresh graduates and one can see, looking at average figures that this holds true because looking at averages themselves, Frankfurt leads with around €80,000 on average, followed by Munich at €75,000 and Berlin at around €65,000. This is closely tied to the kinds of industries and sectors operating in those cities with legal and financial corporations based in Frankfurt, technology, manufacturing and consulting in Munich and start-up enterprises mostly based in and around Berlin. Then we can also consider the likes of Hamburg which is particularly popular for logistics and trade but the average salary is in the region of Berlin or Munich.
Location and industry or sector are of course important factors determining one’s salary, however, they are not limited to those. German employers are keen to discuss available jobs with experienced candidates, basing their offer on the pre-MBA professional experience. Although career changers do not necessarily stand at a disadvantage, it may be the case depending on the position one applies for. Then of course, salary in Germany for MBA graduates depends on the sector with finance, insurance, consulting and project management positions command higher pay. On increase, are salaries in the IT & technological sector which is becoming the hottest high-earning potential trend on the current job market. Then, naturally when it comes to the company size, it’s also natural that large companies tend to offer better benefits in comparison to smaller enterprises. Those would also be more open to internationals where the level of German may not be as important of a prerequisite.
Average MBA graduate salary in Germany
Typical earnings for MBA graduates in Germany vary on the above factors but for internationals, it is important that the salary meets or exceeds the €45,300 threshold needed for the EU Blue Card. In most situations, this threshold is met and exceeded with German employers valuing graduates of MBA programs with pre-MBA work experience, especially leadership experience. The general rule-of-thumb is, the more pre-MBA experience, the higher chances for a salary in the upper brackets of a salary range. Talking about salary ranges, an MBA graduate in Germany typically starts-off on a salary between €65,000 and €85,000 depending on the above mentioned factors. In consulting, the salaries are a little bit higher with €80,000 to €100,000 should you go for one of the top firms which are also present in Munich.
For the finance sector, one could expect a starting salary of around €75,000 to €95,000 and here, it is important to highlight that one talks about positions not responsible for portfolio management where special qualifications such as the CFA are required. Naturally, because of the heavy regulation involved, in the cases of consulting and finance, having a proficiency in German language will definitely act to one’s advantage – the roles are after all client-facing and it may be quite a good investment to set time aside learning extra German on the side of one’s MBA studies. In the technology sector, this would not be as important and German labor market is certainly very open to international talent in IT, engineering or project management. Salaries in the sector, including start-ups typically offer starting salaries of €70,000 to €85,000. Again, we should bear in mind that large firms would most likely be able to offer higher salaries due to their market positioning.
MBA graduate salaries across Europe
When it comes to the salary trends in Europe for MBA graduates, the most consistent trends are in Western Europe where salaries are still higher in comparison to the Eastern and Southern parts. The United Kingdom (non-EU), Netherlands, Luxembourg and Germany are perhaps the most evident examples of this trend, along with Switzerland which, just like the UK is not part of the EU and may thus require special entry criteria for internationals. Mid-range salaries are typical for the likes of France, Spain, Italy or Poland where the difference in salary is typically compensated by a lower cost of living. In each of those, there are also specific sectors or industries that are open to potential candidates.
Perhaps unsurprisingly, Switzerland is a place where an average MBA starting salary is the highest with around CHF 120,000 to 140,000 (€110,000 to €130,000) as an average drawn from multiple sources. However, it also tops the list when it comes to the costs of living and effectively the salary melts down relatively faster on the basics such as rent, food and other expenses. Also, when it comes to taxation, the myth of Switzerland being a tax-heaven is not entirely true and there are taxes one needs to pay when residing in the country. As for the industry, banking, pharmaceuticals and legal consultancies are the most important sectors but due to country’s neutrality, there are quite a lot of international organizations such as the Olympic Committee that have their HQ in Switzerland. Those could also be good employment opportunities for internationals.
When it comes to the United Kingdom, the demand is quite high in finance & consulting, specifically in the City of London, technology which is rather spread around the country but also media and marketing with a lot of global agencies having their HQs in the country. Salaries range from €80,000 to €105,000 and will certainly be affected by the level of work experience and performance – the labor market is very competitive and so a lot of effort must be put in to be recognized at the beginning of one’s journey. Once in, the salaries are stable and growth opportunities are immense. One big advantage is the English language and openness to international talents which makes the UK one of the favored destinations for MBA graduates. In the Post-Brexit uncertainty, number of global companies shifted whole or part of their operations to mainland Europe with the likes of legal, financial or consulting firms but also corporations such as Unilever from the FMCG sector. Countries such as Luxembourg, the Netherlands or France have taken those companies with open arms. If one looks at France, MBA studies have gained quite a value with many prestigious schools and opportunities for graduates of MBA programs. With salaries ranging from €60,000 to €80,000 and particular affinity to luxury goods, finance and consulting, Paris can be an attractive destination for MBA graduates.
Similarly, when it comes to MBA education, Spain is quite a large player with several important business schools offering attractive programs. For post-graduation careers, Spanish average salaries tend to be lower at €50,000 to €70,000, going hand in hand with lower costs of living. Opportunities are frequently to be found in the tech sector but also consulting. The MBA market is therefore very competitive when Europe is considered, with quite a number of large schools, prestigious through recognition in rankings, AACSB accreditation and appeal of their graduates to potential employers.
When it comes to earnings post-graduation and costs of living, Germany is the most balanced option offering a wide spectrum of opportunities without draining the post-tax earnings through high living costs. At the same time, Germany is undergoing a transition from heavy reliance on production and export into one that also provides services. The shift itself offers fantastic opportunity for early movers who can capitalize on getting education and settling in Germany. Employers in Germany increasingly seek MBAs for expansion and international strategy which is why international graduates with MBA degrees from Germany are the most attractive option for them to succeed. This naturally has an impact on the salaries offered and stability on the German labor market means one can plan safely in the long-term and integrate into the market very effectively.
Post-MBA Salary in Germany: It’s more than the bottom of your payslip
The salary landscape for MBA graduates in Germany and Europe, paints a promising picture. As we’ve explored, an MBA serves as a valuable catalyst for career growth and increased earning potential, but the results can vary significantly depending on various factors such as location, industry, and pre-MBA experience. Looking solely on the salary offered is quite a shallow view and so would be selecting a degree on the basis of statistical averages of salaries secured by alumni. The statistics point only to a numerical figure but at the end of the day, behind those numbers there are stories of people, their professional experience, application process performance and thus they should not be taken lightly.
Although not the highest across Europe, in Germany, MBA salaries range from €65,000 to €85,000 with higher earnings often found in finance and consulting roles, especially in cities like Frankfurt and Munich. The country’s evolving labor market offers opportunities in traditional sectors like manufacturing and finance, as well as growing industries like technology and project management. In addition, Germany’s balanced cost of living and relatively stable economy make it a compelling destination for MBA graduates seeking long-term career prospects. The German economy is thus a good setting for embarking on an MBA program and transitioning to a stable, relatively well-paid position without significant burden in the form of living costs.
When compared to other European countries, we can say that Germany offers a middle-ground approach. While salaries may not reach the heights seen in Switzerland or London, the lower cost of living and strong job market provide a competitive edge. Moreover, Germany’s openness to international talent in IT, engineering, and other technical fields makes it a welcoming choice for non-German speakers, especially in multinational corporations. Ultimately, choosing where to pursue an MBA and where to launch a post-graduation career requires balancing earning potential with personal goals, professional aspirations, and lifestyle preferences. An MBA is more than just a financial investment; it’s a pathway to broader opportunities, professional development, and the chance to make a significant impact in the global business landscape. For those who choose wisely, the return on investment can be truly transformative.
If you would like to find out more about the MBA, please take a look at our article “What is an MBA?”.
