← BlogJune 10, 20225 min readEditorial teamDEUAENRU
For Workers
Understanding Your German Payslip: Gross, Net and Deductions
At the end of the month you receive a payslip, often with many lines and abbreviations. Here is what is behind it and how to check that everything is right.
Gross and net: the difference
Gross is your pay before deductions: hourly rate times hours worked plus any supplements. Net is what lands in your account after tax and social insurance. The statutory minimum wage of €9.82 (from 1 July 2022: €10.45) always refers to the gross hourly rate.
Which deductions are there?
The following are normally deducted from your gross pay:
- Income tax (Lohnsteuer): depends on tax class and income. You need your tax identification number for this.
- Pension insurance: 9.3 percent employee share.
- Health insurance: 7.3 percent plus half of your health fund’s additional contribution.
- Long-term care insurance: 1.525 percent, plus 0.35 percent for people without children.
- Unemployment insurance: 1.2 percent.
For short-term employment, meaning at most three months or 70 working days a year, social security contributions generally do not apply. Usually only income tax remains.
What else is on the payslip?
Besides gross and net, you will find the pay period, hours, supplements for night, Sunday or public holiday work, benefits in kind such as housing or meals, and any advances. Housing costs and deductions must be listed traceably. More on housing in Housing While Working in Germany.
Your rights
Your employer must give you a payslip in text form with every payment. Working time should be recorded. If something is wrong, first talk to your employer and ask for a correction. Keep all payslips, because they matter later, for example for your tax return.
Checklist: is my payslip right?
- Name, period and hours are correct
- Gross hourly pay at least the minimum wage
- Supplements and special payments included
- Tax and social insurance deductions understandable
- Deductions for housing or materials as agreed
- Payout matches the net amount
Frequently asked questions
What is the difference between gross and net?
Gross is pay before deductions, net is the amount after tax and social insurance.
Do I have to pay social contributions?
In regular employment yes. In short-term employment of up to three months or 70 working days, generally not.
How long should I keep payslips?
Ideally several years, at least until your tax return and beyond.
What if my payslip is wrong?
Talk to your employer, ask for a correction and keep proof such as timesheets ready.