1 Base pay structure
Direct link to class size/pass rate?
2 What can raise a professor’s pay
Leistungs?bezüge (variable allowances): Recruitment or retention bonuses (“Berufungs-/Bleibe-Leistungs?bezüge”). Special-performance bonuses for teaching, research, equal-opportunity work, etc. Criteria are set by each university; some include good teaching evaluations or internal goal-agreements, but none use a mechanical “% passed” formula (, ). Goal- or target-agreements: reaching agreed teaching or research targets can trigger new or permanent bonuses (). Teaching awards: institutional or national prizes worth €1 000–€4 000 (one-off) (, ). Third-party funding supplements (“Forschungs- und Lehr?zulage”): a share of overheads for projects the professor raised . 3 Institution-level performance funds (LOM) – indirect only
Länder such as NRW, BW and Berlin allocate 20-30 % of their university block grant by formula. One main indicator is the number of graduates, with extra weight for finishing on time (factor 1.5) – i.e. completion counts, not grade averages (, ).
Universities may trickle some of that money down to faculties or individuals, but the internal rules vary and are usually negotiated rather than automatic. No Land currently rewards individual professors directly for bigger classes or higher average marks. 4 Negative incentives / sanctions
Teaching-load duty: 8–9 SWS at universities, 16–18 SWS at universities of applied sciences; persistent under-fulfilment can lead to pay docking or suspension (VG Magdeburg 2023 withheld 20 % salary) (, ). Repayment clauses: recruitment bonuses can be clawed back if the professor leaves within (typically) three years (). Tenure-track: a negative tenure evaluation ends employment after six years (TUM model) (). Adjuncts: course cancelled or unpaid if enrolment stays below the minimum; no extra pay for high enrolment (, ). 5 Bottom line
No German university pays lecturers more just because more students sit in the room, pass the exam, or achieve higher marks. Pay can rise via negotiable bonuses, teaching awards, or goal-agreements, but these are discretionary and locally defined. System-wide performance funding rewards universities (not individuals) for completions, not for class size or grade averages. Disincentives focus on not teaching enough, breaking bonus agreements, or leaving early. Sources (in order cited)
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1 SWS (“Semester-Wochen?stunde”)
1 SWS = 45 min contact time per week of the 14- to 15-week lecture period. A 2-SWS class is therefore one 90-min session each teaching week. () Typical compulsory load (“Lehrdeputat”)
Universities of applied sciences (FH)
2 Money linked to programme popularity / head-counts
Effect on an individual lecturer’s salary
Bottom line: High enrolment makes it easier for a department to get extra money or positions, but professors and adjuncts do not receive a head-count bonus in their payslip.
3 Incentives or penalties tied to exam retakes, pass rates, drop-outs
Land-level formulas: None of the 16 Länder use pass rates, average marks or retake numbers. The only teaching indicators are in several Länder (Berlin, Niedersachsen, Saarland …) “students still within the standard study time (Regel?studien?zeit)”, which rewards on-time progress and indirectly penalises long delays/drop-outs. () University/faculty level: some target agreements add KPIs such as credit-points per semester or dropout reduction, but these are negotiated, discretionary and affect departmental funds, not individual base pay. No fines for a lecturer if many students fail; at most, poor student evaluations can block a local teaching bonus or trigger didactic coaching. Drop-outs hurt only indirectly: fewer graduates ⇒ smaller share of the graduate-based pot in the next LOM round. There is no explicit “drop-out penalty”. 4 Quick answers to your concrete questions
What exactly is SWS? Unit of weekly 45-min teaching time. Teaching-load thresholds: 9 SWS (universities) or 18 SWS (FH) for full professors in NRW; similar nationwide. Bonus for popular courses? University/faculty may get extra budget; individual salaries stay flat. Bonus for high pass-rates / few retakes? None. Only student evaluations sometimes feed small teaching-quality bonuses. Penalty for drop-outs? Only via reduced graduate counts in the LOM formula—felt at institutional, not personal, level. That’s the whole picture—no hidden per-student pay, but plenty of funding formulas one step above the individual lecturer.
NRW Performance-Based Funding (LOM) – Master’s Degrees & “On-Time” Factor
Weight in the LOM algorithm
How the two factors interact
The multipliers are cumulative:
Weighted value = Degree-type factor × “On-time” factor
Master finished on time → 0.5 × 1.5 = 0.75 Bachelor finished on time → 1 × 1.5 = 1.5 Thus an on-time Master counts for only half the weight of an on-time Bachelor. Rationale: NRW mainly wants to promote the first degree but still reward speedy completions. The weighted graduate numbers feed 50 % (universities) or 75 % (universities of applied sciences) of the LOM redistribution pool. Universities with above-average numbers of quick first degrees receive more state money, yet these funds reach only the institution or faculty level, not individual salaries. () Adjunct (Lehrbeauftragte) vs. Professor – Quick Overview
Lehrbeauftragte (Adjunct)
Professor (W-salary scale)
Key points for instructors
Adjuncts receive no share of LOM money; their fee does not rise with class size or pass rates. Professors may benefit indirectly through performance bonuses or faculty budgets if the university gains funds thanks to good KPIs—but there is no direct “pass-rate bonus.” Quick Take-aways
In NRW, a Master’s degree counts only half as much as a Bachelor’s, but is boosted by 50 % if completed on time. This mechanism affects funding between universities, not individual pay. Adjuncts are hourly freelancers; professors are institutionally anchored with research and budget duties. German Public University – Business Model (2025 snapshot)
Cultural consequences of the funding logic
Net result: a hybrid culture – public-service & collegial at its core; overlaid by KPIs that can tip into perfectionism when staffing lags behind enrolment. Where management reinvests performance money in permanent posts and support services, the environment stays demanding but healthy. Where it doesn’t, pressure escalates.
How to keep it healthy (actionable ideas)
Add wellbeing metrics to internal dashboards; weigh them like pass-rates. Use Zukunfts?vertrag funds earmarked for “unbefristete Stellen” to convert a share of grant-financed jobs into permanent teaching-and-research roles (). Cap cohort size per staff member in course regs, not only via SWS. Participatory budgeting: let student & staff committees decide how LOM gains are spent. Reward mentoring, open science and community impact in bonus schemes, not just papers & €. These tweaks align the business model with a sustainable, inclusive academic culture rather than a relentlessly metric-driven one.
How student evaluations of teaching (SETs) are tied to money inside German public universities
Why universities link SETs to budgets
Governance logic: Länder already reward whole universities for graduate numbers; faculties want an internal lever for quality, not just volume. Low transaction cost: Surveys are cheap, numeric and annual, so they fit existing performance-funding software. Signal to staff: Funds flow faster than formal promotions, giving a visible “thank-you” to popular instructors. Intended and unintended cultural effects
Bottom line for student experience and culture
If well-designed (moderate weight, grade-adjusted, coupled with peer reviews) SET-based funding nudges departments to invest in clearer structures, smaller groups and support staff — demanding but largely healthy. If over-weighted or used without bias controls, it can breed defensive teaching (“easy A, happy eval”) and a metrics-obsessed micro-culture that feels perfectionistic or toxic, especially where staff are on short-term contracts. Current German practice is patchy: only some faculties (not whole universities) link ≥15 % of their teaching budget to SETs, and empirical work so far finds mixed evidence on actual grade inflation—concern is real, but impact depends on local safeguards. A concise heuristic: ≤20 % budget via SETs + robust bias correction = healthy spur; > 30 % and no controls = recipe for grade-driven toxicity.
Thesis-supervision incentives at German public universities (2025)
Rare monetary schemes for doctorates
Adjunct (Lehrbeauftragte)
Paid strictly per teaching hour; supervising theses is normally excluded or, at best, compensated by a small one-off fee (< €100). No link to SWS or bonuses. () Practical consequences for students
Once a professor has hit the 3-SWS credit cap, taking extra theses yields no further benefit, so slots can become scarce. The incentive is to accept a manageable number, not to inflate head-counts. Where cash premiums exist they reward speed, nudging supervisors to keep projects on track—but risk time-pressure on candidates. In most places supervision remains driven by research interest and reputation, not pay. Bottom line: For Bachelor/Master work, the reward is merely a small reduction in other teaching hours; for doctorates, only a handful of universities pay real money, and even then it is routed to budgets, not personal salaries. Germany’s public system still relies mainly on intrinsic and reputational motives rather than cash incentives.
How PhD candidates in Germany are paid & incentivised to teach and examine
What a doctoral candidate gets
Incentives & disincentives in practice
Teaching is salaried time on TV-L contracts but no premium per extra student or good pass rates. Small side-contracts (marking, tutoring) top up stipends or part-time wages but rarely reach €1 000 / semester. Faculties can block thesis submission until the required SWS are documented; this is the strongest “incentive”. Teaching hours often convert into credit points in structured PhD programmes. Evidence of university teaching is expected for post-doc jobs and later habilitation or lectureship applications. Free didactics workshops + teaching certificates are offered; completing them can weigh in tenure evaluations. Contracted teaching still counts against the 48-hour working week – time lost for experiments/papers. Short TV-L terms (≤ 3 years typical) mean every extra SWS can delay research; candidates on fellowships may feel compelled to teach for C.V. value but are paid the lowest hourly rates. No pay-for-performance on exam success ⇒ little formal reward for high-effort mentoring; motivation is mainly intrinsic or reputational. Net effect on culture
Reasonably healthy where: teaching loads stay at 2–4 SWS, didactic support exists, and research time is protected. staff shortages lead supervisors to push PhDs beyond the contractual duty, marking contracts are paid per script, incentivising speed over feedback, or graduation is held hostage to undocumented teaching hours. In short, German PhD candidates must teach just enough to satisfy contracts and doctoral regulations; money is modest and largely flat-rate, so the real incentives are timely graduation, C.V. building, and future academic eligibility, not cash bonuses.