Glossary — 220 German official terms explained

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5 terms found

Lastschrift (direct debit)

Payment procedure where the payee withdraws the amount from the payer's account (SEPA direct debit).

Rent and insurance are deducted from the account by direct debit.

Finance

Lohnfortzahlung (wage continuation)

Continuation of salary payment during illness — employer pays up to 6 weeks, then sick pay from insurance.

In case of illness, an employee receives 6 weeks of wage continuation from the employer.

Work

Lohnsteuer (wage tax)

Tax on income from employment — withheld by the employer monthly and submitted directly to the tax office.

Income tax is automatically deducted from gross salary.

Finance

Lohnsteuerjahresausgleich (annual wage tax adjustment)

Reconciliation of monthly income tax payments with actual annual tax liability — often results in a refund.

Through the annual income tax reconciliation, I received €800 back from the tax office.

Finance

Lohnsteuerkarte (wage tax card)

Formerly a physical card, now electronic (ELStAM) — contains tax class and tax-free allowances.

The electronic income tax card is now called ELStAM.

Finance

📚 Glossary — 220 German official terms explained