Nettogehalts

Nettogehalts, or take-home pay, is the portion of an employee’s earnings that remains after deductions from gross salary. It is the amount paid to the employee in hand each pay period and is shown on the payslip. Nettogehalt differs from Bruttogehalt, which is the total before deductions.

In many German-speaking contexts, the main deductions are income tax (Lohnsteuer), the solidarity surcharge (Soli), and church tax where applicable, plus social security contributions: pension insurance (Rentenversicherung), health insurance (Krankenversicherung), unemployment insurance (Arbeitslosenversicherung), and long-term care insurance (Pflegeversicherung). Employees typically bear about half of these social contributions, with the remainder covered by the employer. The income tax is influenced by the tax class (Steuerklasse), which depends on factors such as marital status and number of dependents, as well as any allowances or deductions the employee claims.

Nettogehalt also varies with bonuses, overtime, and benefits in kind, and it can change if tax and social contribution laws are revised. In certain countries, similar concepts exist under different names and with different rates and structures. For example, in job payslips the gross amount, each deduction, and the resulting net pay are itemized to provide a transparent view of how the take-home figure is reached.

Understanding Nettogehalts is essential for personal budgeting and for comparing job offers, as it reflects the actual income available after mandatory withholdings rather than the gross salary advertised.