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Good knowledge of German results in ‘better pay’ for foreigners

Do you need to have fluent German to live and work in Germany? It's a debate that provokes strong reactions. Now a new study has found strong language skills increase foreigners' chances of being paid more.

Published: 8 October 2019 13:09 CEST
Updated: 8 October 2019 15:13 CEST
Good knowledge of German results in ‘better pay’ for foreigners
A classroom for learning German. Is it essential for life in Germany? Photo: DPA

The salary of foreigners increases the better their knowledge of German, according to a new study.

Research by the German Economic Institute (IW) found that well-educated migrants with a very high level of German earn just as much money as their peers who are native Germans.

According to the study, a good knowledge of German is therefore a fundamental prerequisite for foreigners to be successful in the labour market. 

“Language skills are the key to successful integration into the German labour market,” said Wido Geis-Thöne, author of the study.

The study recommended that Germany should further improve the quality of integration courses and give all migrants access to them. In addition, the range of advanced language courses should be expanded and contact with native speakers, which is important for language competence, promoted.

The research also found that qualified migrants scored better in some German tests than some less well-educated Germans without a migration background – and earned more money. 

The study therefore also recommends that native Germans need educational opportunities in order to improve their literacy skills.

READ ALSO: 6.2 million in Germany 'cannot read or write German properly'

Researcher Geis-Thöne analyzed three different data sets for the study, including the National Education Panel, the Survey of Adult Skills study and the Socio-economic Panel. All three studies query both the participants' knowledge of German and their wages.

Overall, however, the unemployment rate among migrants is significantly higher than for native Germans. 

Of the approximately 2.3 million unemployed people in Germany, almost half come from a migrant background (Migrationshintergrund) According to the official definition, a person has a migrant background if he or she has at least one parent who was not born with German citizenship.

According to the IW study, the higher unemployment of foreigners is largely down to their overall lower language level.

Is German needed?

However, careers experts say that it is still possible to work in Germany without a high level of Germany.

The Local's job coach Chris Pyak recently told how the majority of job openings do not require German language skills.

“I've been analyzing the complete German job market since 2013. The overwhelming number of jobs for professionals with a university degree can be done in English,” he said. “Software engineers, data analysts and business developers don't need German.”

However, Pyak says that many human resources workers still insist on fluent German language skills. Getting past these departments to speak to the bosses about why you are the ideal candidate for the job is the key to gaining ground in the German workforce.

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WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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