Who is "poor" and who can be considered "rich" in Germany? And who could be considered the majority - the middle class? This cannot always be said clearly, which does not prevent parties from lobbying for the votes of the "middle class", to which - according to polls - most Germans belong.
The Institute for German Economics in Cologne has now developed a scientific definition based on income. To this end, the scientists went through two stages: first, based on various criteria related to education and employment, the socio-cultural environment was determined, and then it was studied which groups with the corresponding incomes dominate according to these characteristics," the authors of the study, Judith Niehus and Maximilian Stockhausen, told ARD.
The starting point is the average income in society - the so-called median salary. And someone is considered to be part of the middle class when the net income of the respective household ranges between 80 and 150 percent of the median salary, economists explain.
The type of household plays a significant role
In 2022, this median salary amounted to 2,312 euros per month. To determine disposable income, all income from work, capital, pension and other income was taken into account, taxes and social security contributions were deducted, after which the household income was distributed among its members.
This has established that life is cheaper if more people live together, as well as that children need less money than adults, economists from the Cologne institute told ARD. That is, whether a household is part of the middle class or not depends on its size and number.
To be rich, you must have at least 5,780 euros net
Ultimately, the study comes to the conclusion that a person with a monthly income between 1,850 and 3,470 euros can be considered middle class. For a family of four, the limits extend between 3,880 and 7,280 euros. "In 2022, 48 percent of Germans relied on such funds - i.e. approximately half", the Institute for German Economics explained to ARD.
Anyone who earns more than 250 percent of the median salary per month is already in the relatively wealthy group. For an individual household, this applies to amounts over 5,780 euros, for a family of four - from 12,140 and up. According to scientists, this group includes four percent of Germans.