nettolön

Nettolön, also written nettolön or take-home pay, is the amount of income an employee receives after deductions from the gross salary. It represents the actual money paid to the employee in a given pay period and is opposed to the gross salary (bruttolön), which is the earned amount before any deductions.

Calculation and key components

The starting point is the gross salary. From this, taxes and other deductions are subtracted. The most significant deduction is income tax, which in Sweden is determined by municipal tax rates and, for higher earnings, additional state tax. The tax base and the applicable rates vary by municipality and year and may include church tax if applicable. In addition to income tax, other deductions can affect nettolön, such as voluntary or mandatory pension contributions, and any union dues or other payroll reductions that the employee has agreed to. Some elements are reflected in the tax calculation rather than as separate line items on the payslip. The result is the take-home amount the employee receives.

Factors and tools

Nettolön is influenced by where the employee lives, yearly income, and the specific deductions or tax credits the individual can claim. In Sweden, tools and tables provided by Skatteverket (the Swedish Tax Agency) and various payroll calculators help estimate nettolön by applying current municipal rates, potential state tax, and tax credits such as jobbskatteavdrag. Payslips typically show gross salary, each deduction, and the resulting nettolön, enabling the employee to verify the calculation.

Context

The concept of nettolön exists in many tax systems as take-home pay or net salary, though exact components and calculations differ by country. In Sweden, nettolön is a useful measure of actual disposable income after statutory and voluntary payroll deductions.