How to read your German payslip

Your first German payslip (Gehaltsabrechnung) can be a shock: the gap between gross (brutto) and net (netto) is large. Here is where the money goes, line by line.

Tax deductions

• Lohnsteuer (income tax): the biggest deduction, set by your tax class (Steuerklasse).
• Solidaritätszuschlag (Soli): now only for higher earners.
• Kirchensteuer (church tax): only if you are a registered member of a church.

Social contributions, split with your employer

• Rentenversicherung: the state pension.
• Krankenversicherung: health insurance.
• Pflegeversicherung: long-term care (a little higher if you have no children).
• Arbeitslosenversicherung: unemployment insurance.

Your tax class matters

Steuerklasse drives how much Lohnsteuer is withheld. Married couples can combine classes (for example III and V, or IV and IV), which changes monthly take-home. Remember it is withholding, not your final bill: a tax return often refunds the difference.

Employer money you might be leaving behind

• Betriebliche Altersvorsorge (bAV): a company pension, often with an employer top-up plus tax and social-contribution relief.
• Vermögenswirksame Leistungen (VL): a small monthly savings top-up many employers pay if you open the right product.
• Other perks: a transport pass (Jobticket), meal subsidies, or a bike scheme (Jobrad).

General information, not advice. Want your own numbers? Our free net-salary calculator estimates your take-home pay in seconds, and a quick check shows whether you are using the employer benefits available to you.