How to ask about compensation and bonuses in Germany as a sales candidate
When considering a new sales job in Germany, you need to fully understand how compensation and bonuses work and what they look like at your potential new company. The German job market is competitive, and salary expectations can vary depending on the sector, company size and your level of experience.
While negotiating your salary and benefits, try to strike a balance between being confident and professional.
Many candidates hesitate to discuss compensation for fear of appearing too focused on money, but addressing these topics at the right time is the best way to secure a fair offer.
Here’s some guidance on how to approach these discussions with confidence and ensure you make informed decisions about your compensation package.
- What is the average salary for a sales professional in Germany?
- What should you ask for in a compensation package?
- When should you ask about compensation in an interview?
- How to professionally ask about compensation
- Negotiating a signing bonus in Germany
- How to negotiate your current salary with a new job offer
- How are bonuses taxed in Germany?
- How to ask for severance pay
- How to ask about stock options in a job offer
- How to ask about compensation in an email
- Key takeaways
What is the average salary for a sales professional in Germany?
Salaries for sales professionals vary depending on experience, sector and location. Here’s what you can expect for different roles:
- Junior Sales Manager salary Germany: 45,000 EUR to 55,000 EUR
- Sales Manager salary Germany: 55,000 EUR to 75,000 EUR
- Senior Sales Manager salary Germany: 95,000 EUR to 130,000 EUR
- Head of Sales salary Germany: 130,000 EUR to 170,000 EUR
- Sales Director salary Germany: 170,000 EUR to 250,000 EUR
Find more salaries using our salary map.
When applying for roles, sales professionals of all levels will consider their total compensation package rather than base salary alone. Typically, base salary makes up 60-80% of their total compensation while commission takes up the remaining 20-30%. Commission is often based on a percentage of sales made.
What should you ask for in a compensation package?
A compensation package includes more than just a base salary. Before accepting an offer, consider asking about:
- Annual performance-based bonuses and incentives
- Signing bonus opportunities in Germany
- Stock options or equity compensation
- Overtime pay, commission structures or sales incentives
- Additional benefits such as health insurance, pension contributions and commuting compensation
Understanding the full package will give you a better picture of the overall value of the offer beyond the base salary.
When should you ask about compensation in an interview?
Timing plays a critical role in salary discussions. Generally, it’s best to wait until the employer has expressed serious interest in hiring you. This often happens in later interview stages or after an initial job offer has been made. But if the employer brings up the topic earlier, you should be prepared to discuss your expectations professionally.
During initial interviews, focus on demonstrating your qualifications, sales experience and potential contributions to the company. Once the conversation shifts towards job expectations, contract details or benefits, you can naturally introduce compensation into the discussion.
How to professionally ask about compensation
When discussing compensation, try to approach the conversation strategically. Instead of directly asking, “What is the salary?” try framing your question in a way that reflects your understanding of the role and market standards.
You can ask about the salary range for the position or inquire about how the company structures commissions and performance bonuses for sales professionals.
Consider asking these questions:
- “Can you provide more details about the full compensation package, including salary, bonuses and benefits?”
- “How does the company approach performance-based pay and incentives?”
- “What is the typical career progression for this role and how does compensation evolve over time?”
Negotiating a signing bonus in Germany
Signing bonuses are less common in Germany compared some other regions, but they do exist – particularly in competitive sectors or senior-level positions.
If you believe a signing bonus is justified based on your skills and market demand, you should introduce the topic carefully. You can explain how a signing bonus could help ease your transition, especially if you’re leaving a job where you would forfeit pending commissions or bonuses.
If you want to request a signing bonus, be prepared to justify your request. You could say:
- “Given my experience and the immediate value I bring to the team, would you consider offering a signing bonus?”
- “I have competing offers that include a signing bonus. Is this something we could explore as part of the package?”
Employers may be more open to offering a signing bonus if they need to secure your commitment quickly or if you’re leaving a role where you would forfeit bonuses or stock options.
How to negotiate your current salary with a new job offer
If you’re currently employed and receive a job offer, it’s important to leverage your existing salary and market benchmarks to negotiate a better package. Instead of just stating your current salary, highlight your achievements, market value and industry data.
For example:
- “Based on my skills, experience and current market trends, I believe a salary in the range of [specific amount] would be appropriate. Can we align on a package that reflects this?”
- “I’m excited about this opportunity and want to ensure my compensation aligns with industry benchmarks. Would you be open to discussing an adjustment to the base salary?”
Employers expect some level of negotiation. A well-reasoned approach increases your chances of securing a better deal. If the employer can’t increase the base salary, you might explore alternatives such as a higher commission rate, additional bonuses or extra benefits like professional development budgets or relocation assistance.
How are bonuses taxed in Germany?
Bonuses in Germany are taxed as regular income, meaning they’re subject to the same tax brackets and social security contributions as your salary. This can significantly reduce the net amount you receive. Before accepting a compensation package with a strong bonus component, it’s wise to clarify how these bonuses are calculated and when they’re paid.
You could ask: “Are bonuses based on individual performance, team achievements or company-wide targets?”
Understanding these details will help you plan your finances accordingly and avoid surprises when tax season arrives. If bonuses form a large part of your compensation, consulting a tax advisor can help you estimate the actual take-home amount.
How to ask for severance pay
In Germany, severance pay is not legally required in all cases but many companies offer it during restructuring or layoffs. If you’re negotiating an exit package or considering a role with potential job security concerns, it’s important to clarify severance terms in advance.
Key questions include:
- “What is the standard severance package offered by the company?”
- “Based on my tenure and contributions, would it be possible to negotiate a higher severance amount?”
- “Can you provide details on how severance payments are calculated?”
How to ask about stock options in a job offer
For companies that offer stock options or equity compensation, it’s important to understand the details before accepting an offer. Questions to ask include:
- “Does the company offer stock options to employees in this role?”
- “What is the vesting schedule for stock options?”
- “How is the company’s equity programme structured and what impact does it have on total compensation?”
Stock options can add significant value to your compensation package, but their actual worth depends on factors such as company growth and liquidity.
How to ask about compensation in an email
If you prefer to discuss salary via email, keep your message professional and clear.
Subject: Clarification on compensation package
Dear [hiring manager’s name],
I appreciate the opportunity to interview for the position and am excited about the possibility of joining your team. Before moving forward, I would appreciate some clarification on the compensation package, including base salary, bonuses and any additional benefits. Could you provide more details on this?
Looking forward to your response.
Best regards,
[Your name]
Key takeaways
Discussing compensation in Germany requires preparation, market awareness and strategic timing. By researching industry standards, understanding how bonuses are taxed and negotiating professionally, you can secure a competitive offer that reflects your value.
Remember that compensation includes more than just salary; performance bonuses, commissions, stock options and benefits all play a role in your total earnings. With the right approach, you can confidently negotiate and ensure your financial future aligns with your career goals.
Get in touch with us today to discuss the next steps in your career.