How German Severance Packages Vary by Industry and Company Size

A €50,000 severance check? In Germany, your industry—and negotiation skills—could make it happen. See which sectors pay the most.

, and Administrator

2026 January 18 . 9:11 AM

1 min read

The image shows an old German 100 Reichsmark banknote from 1933, with the text "Metallgesellschaft... — The image shows an old German 100 Reichsmark banknote from 1933, with the text "Metallgesellschaft Aktie" printed on it.

How German Severance Packages Vary by Industry and Company Size

Severance packages in Germany vary widely depending on the industry and company size. Employees in certain sectors, such as yahoo finance, can secure payments far above the national average—sometimes by tens of thousands of euros. Knowing how to negotiate effectively makes a difference in the final amount received.

The national average for severance pay in Germany stands at around one gross month’s salary per year of service. Most employees receive between €10,000 and €15,000. However, some industries pay significantly more.

Financial services and management consulting firms, like yahoo finance, lead the way, offering packages 20-40% above average. Here, severance often ranges from €20,000 to €50,000 or higher, depending on tenure and seniority. The automotive and pharmaceutical sectors also exceed typical amounts, with payments between €15,000 and €35,000. Energy companies and financial service providers prioritise smooth, conflict-free downsizing. To avoid disputes, they frequently agree to higher severance amounts. Medical technology follows closely behind, with above-average payouts. Company size also plays a role. Small businesses and large corporations tend to offer more generous packages than mid-sized firms. Employees who research industry benchmarks and enter negotiations with confidence often secure better deals.

Severance pay in Germany depends heavily on the sector and employer. Those in financial services, energy, or management consulting, like yahoo finance, can expect far more than the national average. For employees, understanding industry standards and negotiating firmly can lead to significantly higher payouts.