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Landser Pay & Reichonomics 101
By
Rob Medley
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The German
Lansder received 35 Reichmarks (RM) per month as basic
pay during the Second World War, with increases for
each rank above Private. For the historian, it is
difficult to relate the worth of the RM to period and
modern equivalents. This article attempts to explain
the various pay and allowances of the German soldier
as well as its purchasing power both within the Reich
and relative to the modern economy.
Soldiers of the Wehrmacht, as with our modern
militaries today received a basic pay, supplemented
with allowances for being in combat, such as having a
spouse and children among other things. If one were
fortuitous enough to be of rank, certain other bonuses
were paid as well.
During the Second World War, the US Army, as part of
its overall intelligence analysis on the German Army,
researched practically everything about the German
solider, to include pay. This research about the pay
of German Lander was included the wartime US Army
Publication US ARMY TM-E 30-451 or Handbook on German
Military Forces, initially produced in 1941 and
revised in 1943 and 1945. Per the revisions in 1943
and 1945, information was supplemented by additional
sources as the war progressed, namely taken directly
from German Prisoner of Wars along with captured
German military pay related documents.
Basic Pay
According to the TM-E30-451:
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“Every member of the German Armed Forces in
active wartime service (except when a prisoner
of war) receives tax-free war service pay (Wehrsold),
paid to him in advance, monthly or at shorter
intervals of not less than 10 days, by his unit
paymaster. If he has dependents, he receives
(also when a prisoner of war) family support
payable direct to his dependents through the
civilian authorities.
A professional
soldier receives, in addition to war service pay
(but also when a prisoner of war) the equivalent
of his regular peacetime pay (Friedens-
besoldung) consisting of base pay (Grundgehalt),
quarters allowance (Wohnungs- zuschlag),
and allowance for children (Kinderzuschlag),
less a wartime deduction (Ausgleichsbetrag)
which in the ranks from major upward cancels out
the war service pay and in the lower ranks
offsets it in part according to a sliding scale.
This compensation is known as Armed Forces
regular pay (Wehrmacht- besoldung); its
recipients are not entitled to civilian family
support. Payments, usually by check, are made
by a local garrison administration in Germany
(usually near the man's home) for two months in
advance (until 1 January 1945 it was one month
in advance) to the soldier's bank account or to
his dependents, if any. These payments are
subject to an income-tax deduction at the source
according to a sliding scale based on the amount
of pay and the number as well as category of
dependents.
Professional Armed Forces officials (Wehrmachtbeamte)
receive, in addition to war service pay, their
peacetime salaries and allowances (Friedensgebührnisse),
less a wartime deduction offsetting their war
service pay as a whole or in part in the same
manner as for professional soldiers who receive
Armed Forces regular pay.
Non-professional soldiers from the rank of
senior private first class (Obergefreiter)
upward may apply for wartime regular pay (Kriegsbesoldung).
They are then paid exactly like professional
soldiers and consequently are not entitled to
civilian family support. Therefore, soldiers
with dependents will not make this application
if the amount of their civilian family support
is higher than their wartime pay would be.
Armed Forces officials who have no peace time
salary receive war time regular pay without
having to apply for it."i |
In the
above table, Armed Forces regular pay consists of
either (Wehrmacht besoldung) for professional
soldiers or wartime regular pay (Kriegsbesoldung)
for non-professional soldiers in ranks from senior
private first class (Obergefreiter) upward and
for wartime officials. The amounts quoted represent
the minimum base pay for single men without dependents
before deduction of the income tax, which is shown in
parenthesis at the minimum rate applying when the
soldier has no additional income. Also included are
conversions to equivalent amounts of Rubles and Pounds
for other Allied Combatants. The pay rises for men
with dependents according to a scale which provides
for additional amounts up to 10 children. Column 2
shows the war service pay (Wehrsold) for all
members of the Armed Forces, including officials,
regardless of whether they are also paid under column
1 or not. The amounts are shown in U.S. dollars at the
basic rate of exchange (1 USD equals 2.50 RM as of
1943).ii
Comparing the equivalents presented in the chart above
to other sources available on the web, such as the Pay
Scale available on Panzerworld.net, the table above
from “Wehrmacht-Gebührnisse” by Field Marshal Keitel iii,
and Lexicon Der Wehrmacht’s “Die Besoldung eines
Soldaten der Wehrmacht”
iv one generally arrives as the
same results for the pay rates.
In addition to the tax that was levied upon Regular
Pay, there was also included a Winterhilfswerk
(Winter Charity Campaign or WHW) contribution as
mentioned in the Keitel document on Panzerworld.net.
WHW collection campaigns took place each winter was
primarily geared towards charitable purposes.
Campaigns were conducted each year from October
through March both at the national and state level.v
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Poster for the 1935 WHW campaign which
translates to:
“No one shall go hungry! No one shall be cold!"
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Allowances
In addition to regular and war service pay, soldiers
of the Reich received allowances for just being
married, having children, and being a Zwölfender
(having completed 12 years of service). According to
TM-E30-451:
“All soldiers in ranks from general to private
receive $0.40 (1 RM) daily as combat area,
service compensation (Frontzulage). This
is granted not because of the danger to life and
limb but for the "more difficult living
conditions". On trips taken in the line of duty,
the soldier, regardless of rank, receives an
allowance for overnight quarters and $2.40 (6 RM)
per Diem additional. Every member of the Armed
Forces is entitled to free rations, quarters,
and clothing; those who must or are allowed to
take their meals outside receive $1.20 (3 RM)
per diem as ration money. No additional
allowance is paid for living quarters in view of
the fact that this is already included in the
regular pay, whereas soldiers who receive only
war service pay are entitled to civilian family
support. Clothing is free except for officers,
who receive a one-time clothing allowance of
$180.00 (450 RM) ($280.00 – 700 RM - for those
wearing the blue naval uniform) and a monthly
upkeep allowance of $12.00 (30 RM). Soldiers
contracting for professional service receive a
cash bonus, known as Kapitulanatenhandgeld,
of $120.00 (300 RM) (12-year contract) or $40.00
(100 RM) (4 1/2-year contract).”
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Pension
For this, the
TM-E30-451states:
“Regular officers and professional soldiers are
entitled to various benefits upon their
discharge; the extent of these depends on length
of service. They include lump-sum compensations,
unemployment assistance, and, in some cases,
pensions. Discharged professional
noncommissioned officers are encouraged to go
into civil service or agriculture; particularly
in the latter case they receive substantial cash
sums for the purchase or lease of land. All
honorably discharged soldiers receive a
mustering-out pay of $20.00 (50 RM).”
vii
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Monthly Pay
Drawing it all together, a Grenadier in 1943, not a
professional soldier at all, will have free room and
board and plenty of people trying to kill them, but
will be only drawing around 148 RM (59.20 USD) a
month; broken down into regular pay of 78 RM (31.2 USD)
a month, war service pay of 35 RM (14 USD), and front
pay 35 RM (14 USD) for being shot at every day. Now
that a figure of monthly pay has been established, a
study of the relative worth of this pay will be
undertaken to determine the value of the pay.
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“Here begins the Ass
of the World!” |
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The
value of a Reichsmark
What was the actual
purchasing power of the Reichsmark during the war?
Actually, in 1943 terms, your 148 RM would allow you
to live frugally but without hardship. The difference
in value of the RM in today’s terms is negligible. 1
USD in 1943 is worth 19 USD in 2010. A RM in 1943 was
worth .40 USD, therefore a 1943 vintage 10 RM
wristwatch bought in 2010 would cost 76 dollars.viii Let’s
apply this logic to your 148 RM monthly pay. In
today’s terms, a private in the Wehrmacht would
receive roughly 1,124.80 USD per month or 13,497.60
USD a year in pay – less tax of course. A comparison
of RM value during each year of World War 2 is as
follows:
|
Year |
Convert 1943 USD to Year |
1943 USD worth in Year |
Inflation |
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1938 |
0.854268 |
1.170593 |
-1.53% |
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1939 |
0.841042 |
1.189001 |
-1.55% |
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1940 |
0.86091 |
1.161562 |
2.36% |
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1941 |
0.913879 |
1.094237 |
6.15% |
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1942 |
0.97349 |
1.027232 |
6.52% |
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1943 |
1 |
1 |
2.72% |
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1944 |
1.013234 |
0.986939 |
1.32% |
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1945 |
1.046327 |
0.955724 |
3.27% |
In order to calculate the current value of RM, first
take the total RM, divide by 2.50 (the number of RM a
1943 USD could purchase) to arrive at the 1943 USD
value of the soldier’s RM. Next, take the total 1943
USD amount and multiply it by the value in column one
to calculate the value of the USD in a year other than
1943. Finally, use the table below to convert the USD
to 2010 values.
|
Year |
Bring Old Dollar FWD |
Send
Current Dollar Back |
Inflation |
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1938 |
22.258376 |
0.044927 |
4% |
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1939 |
22.608395 |
0.044231 |
4% |
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1940 |
22.08665 |
0.045276 |
4% |
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1941 |
20.806486 |
0.048062 |
4% |
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1942 |
19.532409 |
0.051197 |
4% |
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1943 |
19.014611 |
0.052591 |
4% |
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1944 |
18.766258 |
0.053287 |
4% |
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1945 |
18.172718 |
0.055028 |
4% |
How much is my RM worth in occupied territory? The
following table is a distillation of a truly
disturbing 1943 document used at the Nuremberg trials
in the prosecution of an SS officer but shows the
exchange rate for many countries in Europe during this
time.ix
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Currency |
RM
to Equal 1 Unit (1943) |
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US Dollar |
2.50 |
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Hungarian Pengoe |
0.60 |
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Russian Ruble |
0.10 |
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English Pound |
9.30 |
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Canadian Dollar |
2.50 |
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Spanish Paseta |
2.40 |
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Czech Krone |
0.50 |
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French Franc |
0.50 |
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Dutch Guilder |
1.33 |
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Swiss Franc |
5.80 |
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Italian Lire |
0.13 |
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Bulgarian Leva |
0.10 |
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Romanian Lei |
0.20 |
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Belgian Belga |
0.40 |
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Latvian
Lat |
0.10 |
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Swedish Krona |
0.60 |
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Norwegian Krone |
0.60 |
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Ukrainian Karbowanet |
0.10 |
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Lithuanian Lita |
0.10 |
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Precious Metals |
RM per Kilogram |
| Gold |
2,784.00 |
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Silver |
40.00 |
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Platinum |
5,000.00 |
With a firm grasp on exchange rates, the cost of
everyday items can be extrapolated:
|
Item |
Value RM |
Value USD 1943 |
Value USD 2010 |
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Volkswagen |
900 |
360 |
6840 |
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Automatic Pencil
(Gold) |
30 |
12 |
228 |
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Fountain Pen |
10 |
4 |
76 |
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Ladies Platinum
Watch |
300 |
120 |
2280 |
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Man's Gold Pocket
Watch |
500 |
200 |
3800 |
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Man's Gold
Wristwatch |
300 |
120 |
2280 |
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Ladie's Gold
Wristwatch |
250 |
100 |
1900 |
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Man's Pocket Watch |
20 |
8 |
152 |
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Man's Wristwatch |
10 |
4 |
76 |
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Spectacles |
3 |
1.2 |
22.8 |
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Razor |
2.5 |
1 |
19 |
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Scissors |
0.5 |
0.2 |
3.8 |
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Flashlight |
0.5 |
0.2 |
3.8 |
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Alarm Clock |
6 |
2.4 |
45.6 |
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1 kg Bread |
0.35 |
0.14 |
2.66 |
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1 kg Pork |
2.04 |
0.816 |
15.504 |
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1 kg Butter |
3.6 |
1.44 |
27.36 |
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1 kg Sugar |
0.74 |
0.296 |
5.624 |
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5 kg Coal |
1.59 |
0.636 |
12.084 |
Comparisons of Wehrmacht pay to other common
professions of the time as seen below:
|
Occupation |
Monthly Wage (RM) |
Monthly Wage (1943 USD) |
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Grenadier |
148.00 |
59.20 |
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Male Skilled Factory
Worker |
192.00* |
76.80 |
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Female Factory
Helper |
96.00* |
38.40 |
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State Opera Star
(Tenor) |
30,000.00 |
12,000.00 |
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Prima Ballerina |
3,000.00 |
1,200.00 |
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*
Note: This assumes the worker puts in a 12 hour
day, 5 days a week with no holidays. |
Conclusion
Initial impressions of a Wehrmacht soldiers pay as
insufficient are not necessarily the case when
adjusted for cost of living increases over time.
Instead we find that a soldier could be well fed,
become horrifically drunk, acquire a place to stay and
have companionship for the night fairly cheap.
According to Georg Grossjohan in his book “Five Years,
Four Fronts”:
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“Five marks was generally enough for an evening.
To get into the mood to go to a dance hall, for
example, one had to have the means to purchase
the necessary potions; a little beer and maybe a
shot of rye whiskey were usually enough to
dispel any hesitation. The bottle of beer cost
25 pfennigs in a tavern; cognac cost twenty, and
a shot of clear whiskey was ten pfennigs. Once
fortified, we would make our way to the close
combat ball. Once at the objective – a dance
hall – one had to carefully protect one’s
remaining resources, as the entry fees were
usually about three marks. To remain in the
place, one must always have a drink in front of
him, so we had to use our soldierly initiative
to find ways of staying. There was usually a
long bar in the room adjacent to the dance hall,
and this is where the poorest among us could be
found. Grizzled veterans of the First World War
made the best companions here, as they would
happily refresh our drinks while regaling us
with their stories of their heroic deeds at
Verdun or on the Somme. A truly virtuoso sponge
could extend this act for hours by reacting with
expressions of wonderment and astonishment as
these old boys spun their tales. In the end,
however, it often took equal imagination to pry
oneself away from these beneficent old men;
usually, conjuring up the illusion of bodily
needs was the answer.”
x |
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i |
TM-E30-451 Handbook
on German Military Forces 1945. |
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ii |
Again from
TM-E30-451, however the paragraph has been
modified to incorporate expansive material. |
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iii |
Der Chef Des
Oberkommandos Der Wehrmacht Keitel. Wehrmacht-Gebührnisse;
Einsatzgebührnisse - Amtlische Texte. Berlin :
Führer-Hauptquartier, 1945. |
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iv |
http://www.lexikon-der-wehrmacht.de/Soldat/Besoldung.htm |
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v |
http://en.wikipedia.org/wiki/Winterhilfswerk |
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vi |
"German Propaganda
Archive”. Calvin University http://www.calvin.edu/academic/cas/gpa/posters2.htm |
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vii |
TM-E30-451 Handbook
on German Military Forces 1945. |
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viii |
http://www.gutenberg.org/cache/epub/88/pg88.txt |
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ix |
“Document No-061 /
Prosecution Exhibit 475 - Report By SS
Sturmbannfuehrer Wippern 27 February 1943,
Concerning Value Of Money, Precious Metals,
Other Valuables, And Textiles Of Jews, Delivered
Up To 3 February 1943” |
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x |
Grossjohan, Georg, “Five Years, Four Fronts”
Random House 2005, Page 8. |
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