Former member of the Senior Management for a huge global bank operating in Germany.
1. These averages are an average. Rarely are they paid. I don't know where these numbers are from but the these numbers are for top earners in good paying industries.
There are junior, normal and senior devs, sometimes above is a lead dev. Business maybe has 2-3 leads that govern a head count of dozens, and many working off-shore.
It is called blended average. People who rank in 107k are paid including bonuses. And rarely make any further wage jumps. The dev who is paid 200k fixed in Germany is a myth, not even close to 120k.
Germany hates IT and devs. Business comes first, and anything and everything regarding IT is considered a cost factor, a necessary burden.
2. Freelancers
Freelancers rake in more money due to tax deductions. So a day rate of 800-1000EUR per month is a pay off and freelancers have to take care of the taxes etc.
Companies on the other hand can deduct those "investments" and roughly pay half the price in the end. So, this is the problem with employment: you are a cost factor and you are a liability from the beginning due to worker rights etc.
Germany punishes workers as well as freelancers. But I could not raise payment as I saw fit. Germany means yearly total times 1,25 = total cost for a company ("employers' part of the tax" as sugar coating for taxes above 60%).
100 workers with a yearly raise of 2-5% in payments amount exponentially and are a risk factor especially considering the fact that productivity rarely increases as well as value to the company on average. So ever increased payments over a span of 10-20 years.
That is the problem with the system: socialism favors keeping you poor. Don't steal people and companies their hard earned money, lower taxes, allow for higher payments at will not by "number comparison and increase to all" and let companies workers decide where they spend their bucks.
3. Conclusion You might wonder how much the guys really perceive on their bank account in the end. It may be lower than you think. Rule of fist: if you do not immediately make the switch to stay in the US you have lots of cuts along the way: company share, taxes.
Before I went to Senior Management I was totally on your page. Now knowing both sides I see the matrix so to say. I am still on your side however business doesn't benefit from all the taxes.
I know a lot of devs paid 120k€ before socialism over here. Also: The 25% "employers part of the tax" isn't a tax but masking the burgeoning costs of (non-tax...) social security systems - benefit receiver are also the only people getting those regular 2-5% raises tbh. (and ofc. every capitalist earns these too I understand by looking at a bank's business model...)
> Freelancers rake in more money due to tax deductions <
Until now - the freelancer thingy is heavy under fire ("Scheinselbständigkeit") and its quite to difficult to have only one or two clients; also 1-person-GmbHs are heavy under fire from the public pension scheme.