Nettolohn

Nettolohn, or net wage, is the amount an employee receives as take‑home pay after all deductions from the gross salary. It represents the actual money available for spending and budgeting and is typically shown on a payslip alongside the gross salary (Bruttolohn).

In Germany and other German‑speaking countries, deductions fall into two main groups: taxes and social security contributions. Taxes include Lohnsteuer (income tax), Solidaritätszuschlag (solidarity surcharge), and Kirchensteuer (church tax) if applicable. Social security contributions cover pension insurance, unemployment insurance, health insurance, and long‑term care insurance. These deductions are calculated on the gross income up to certain contribution ceilings (Beitragsbemessungsgrenze). The employee bears a portion of these deductions, while the employer also contributes, but the employer’s share does not appear on the employee’s payslip.

The net amount depends on individual factors such as tax class (Steuerklasse), allowances, and any tax credits. Tax class ranges from I to VI and influences the amount of Lohnsteuer withheld. Additional elements like child allowances (Kinderfreibetrag) and optional wage conversions (Entgeltumwandlung) for company benefits can modify the Nettolohn.

Nettolohn is used for budgeting, social-benefit eligibility, and comparisons between job offers. In common usage, Nettolohn and Nettogehalt are treated as interchangeable terms describing the take‑home pay after mandatory deductions.