Understanding Gehaltsabrechnung — From Gross to Net

Status: March 2026. All information without guarantee.

Gross vs. Net

• Gross (Brutto) = your salary before all deductions (stated in employment contract)
• Net (Netto) = what arrives in your account
• Rule of thumb: Net ≈ 55–65 % of gross salary

What is deducted?

1. Social Insurance (employee contribution, ~20 %)

| Insurance | Contribution rate 2026 | Your share |
|-------------|-------------------|-------------||
| Health Insurance | 14.6 % + avg 2.9 % surcharge | 8.75 % |
| Pension Insurance | 18.6 % | 9.3 % |
| Unemployment Insurance | 2.6 % | 1.3 % |
| Long-term Care Insurance | 3.6 % (childless: 4.2 %) | 1.8 % (2.1 %) |
| Total | | ~21.15 % |

2. Income Tax Lohnsteuer (0–45 %)

Depends on tax class and income. Examples for tax class I:

| Gross/month | Income tax | Soli | Net (approx.) |
|-------------|-----------|------|-------------||
| 2,500 € | ~259 € | 0 € | ~1,730 € |
| 3,500 € | ~470 € | 0 € | ~2,320 € |
| 5,000 € | ~870 € | ~22 € | ~3,100 € |

3. Church Tax (optional)

• 8 % (Bavaria/Baden-Württemberg) or 9 % (all other regions) of income tax
• Not a church member? No deduction! Register withdrawal at registry office.

Key lines on your Gehaltsabrechnung

1. Gross salary — total compensation
2. Tax gross — basis for income tax
3. Insurance gross — basis for social insurance
4. Income tax — Lohnsteuer
5. Solidarity surcharge — 5.5 % of income tax (threshold: €19,950)
6. KV, RV, AV, PV — the 4 social insurances
7. Net salary — amount paid to you
8. Asset-building benefits (VL) — employer subsidy for savings

Tips

• Use gross-net calculator: brutto-netto-rechner.info
• Check your tax class — wrong class = over/underpayment
• Church tax: If you're not a member, verify it's not being deducted
• Check your Gehaltsabrechnung every month — errors happen