What determines the size of your wage?

What determines the size of your wage?

What determines the size of your wage?

If you think that only wage negotiation determines how much you will actually earn, then you are wrong. After all, many other crucial elements determine your salary. In this article, we will show you what determines the size of your wage.

1. The sector

First and foremost: the sector in which you work will largely determine how high your salary is. If you are active in the care sector or the hospitality industry, your wages will be a lot lower than if you are engaged in the petrochemical sector, for example. Financial institutions (banks, insurance companies, etc.) are generally also among the better payers. Utilities (gas, electricity, …) and the major players in the IT sector are usually also outstanding in terms of payment.

2. Diploma and education

These days, almost anyone knows the answer to the question “what is a diploma of higher education?” and that this document can work wonders in terms of earning money. Your diploma determines how much you actually earn. If you have a primary education diploma or a lower secondary education, you will earn about 82 percent of the average wage. If you have a secondary education diploma, that will be 90 percent of the average salary. However, if you have a higher education diploma (bachelor), your wage immediately rises about thirteen percent above the average. A master’s degree lets you earn up to 54 percent more than the average salary. So, as you can clearly see, education really matters on the job market.

3. Company: small or big?

The size of a company is also crucial for your payroll. The greater the number of employees in a company, the more flexible they can handle wage demands. In a company with fewer than 200 employees, the wage is usually lower than at the international corporation. Of course, there are exceptions that confirm this rule. If you work in a highly specialized, but small company, chances are that you have a solid salary. What is certain is that in a company with more than 1,000 employees you are consistently a lot higher in terms of pay than the national average.

4. Age

Age also has an impact on your salary. After all, in many sectors, there is a link between the wage scale and age. So if you have an older colleague who does the same work as you, chances are that that colleague still earns more than you.

5. Position

If you are a manager, your pay will immediately be above the average. Managers of large and medium-sized companies earn the most with an average monthly wage of 5,391 euros. With this, they get twice as much as people earning the average salary.

Other well-paid functions:

  • Directors of small businesses (4,659 euros).
  • Specialists in the humanities, such as account managers, consultants, economists and lawyers (3,819 euros).
  • Specialists in the physical, mathematical and technical sciences. These include computer scientists, architects and engineers (3,749 euros).
  • Specialists in the medical and life sciences (3,591 euros).

6. Location

Finally, the physical location of a company also determines your salary. If you work in London, there is a good chance that you will earn a lot more for the same position than, for example, in Colchester.