Munich Defense Contractor KNDS to Go Public, Offers Top Salaries
Munich, June 28 – KNDS, the German arm of a leading defense contractor headquartered in Munich, is preparing for its initial public offering (IPO) before the Bundestag’s summer recess. The German government plans to acquire a 40 percent stake in the company, while France intends to reduce its holdings to the same percentage. The arms manufacturer, which produces tanks, artillery, and ammunition, is thriving amidst global geopolitical tensions, with orders and revenues soaring.
The company’s revenue has seen a sharp increase, rising from 3.8 billion euros in 2024 to 4.4 billion euros last year, with record-breaking orders totaling 13.5 billion euros. This growth raises the question of whether the tank manufacturer also offers competitive salaries to its approximately 11,000 employees.
Salaries at KNDS Exceed National Average
While the salaries of top executives, including CEO Jean-Paul Alary, are not yet public, data from the online platform Kununu suggests that KNDS employees earn more than the national average. Kununu allows employees to voluntarily report their salaries, providing average values for various professions that can be compared with German national averages.
For instance, a development engineer at KNDS earns an average of 78,500 euros annually, which is approximately 10,000 euros more than the nationwide average. Similar trends are observed across other professions within the company. KNDS declined to comment on the accuracy of these figures when contacted by AZ.
| Job Title | Annual Salary (KNDS) | National Average Annual Salary |
|---|---|---|
| Department Manager | 112,100 euros | 72,900 euros |
| Project Manager | 79,100 euros | 62,400 euros |
| Development Engineer | 78,500 euros | 68,800 euros |
| Project Engineer | 73,200 euros | 60,200 euros |
| Quality Manager | 59,700 euros | 53,800 euros |
| Service Technician | 58,000 euros | 47,000 euros |
| Logistics Specialist | 48,300 euros | 36,400 euros |
Generous Bonuses and Benefits Through IG Metall Collective Agreement
Beyond competitive basic salaries, KNDS offers several financial advantages, primarily due to its collective bargaining agreement with the IG Metall trade union. Employees receive a Christmas bonus ranging from 25 to 55 percent of their monthly salary (depending on years of service) and a holiday allowance equivalent to approximately 70 percent of a month’s income.
Additionally, employees receive 27.5 percent of their individual average monthly salary (T-Zug A), 26.5 percent of the standard wage in their respective collective bargaining area (T-Zug B), and 18.4 percent of their individual monthly salary (T-Geld). Performance-related pay, which must average at least 14 percent across the entire company, further enhances compensation.
Overtime, night work, and Sunday work are compensated with additional payments of 25 percent and 50 percent, respectively. The company also contributes 319 euros annually towards employees’ occupational or private retirement provisions. In addition to these collectively agreed benefits, KNDS provides subsidies for childcare, the Deutschlandticket (Germany-wide public transport ticket), and field service allowances. The company did not disclose the specific amounts of these additional benefits when asked by AZ.
KNDS’s strong financial performance, driven by increased demand for defense products, positions it as an attractive employer in the Munich region, offering not only secure employment but also highly competitive compensation packages and comprehensive benefits.
Source: https://www.abendzeitung-muenchen.de/muenchen/dieser-muenchner-ruestungskonzern-zahlt-top-gehaelter-art-1140319
