This part shows the paid social contributions and taxes, and what eventually comes out. The amount of the net wage ultimately depends on many variables. Non-taxable payments are stated in a section below (see 6). The letters define the paid taxes and are explained at the bottom of the sheet. Apart from the salary ( Gehalt), this might include bonuses, holiday, or Christmas payments. This list specifies the source of the payment. The next part shows all the tax deductions and social security contributions. In this section, you can find the gross salary of the employee. This is the most interesting part of the payslip. This section mainly specifies the job and provides information on insurance classification.

This is personal data about the employee, such as name and address.

Here is a brief overview of the six different classes: The tax bracket, or tax factor, is mainly dependent on the marital status of the employee. We’ve picked out three terms in this section to keep an eye on. Think about the employee’s personal number, date of birth, but also religion and whether the employee is subject to church tax. Top of the German payslipĪt the top of the payslip you will find the employee’s personal information. Let’s check it out, we’ll show you what it looks like. We’ve broken down a general payslip in three sections. The structure is basically always the same. In Germany the income tax, church tax, solidarity surcharge and social security contributions for pension, unemployment, health, and long-term care insurance are deducted from the gross wage. The German payslip is decisive for calculating income tax, as the gross and net wages, all allowances and deductions from the employee are derived from the gross and net wages.

However, it is very important to know what a payslip is and what factors determine the salary. Trying to read a German payslip (or as they say in Germany: a Gehaltsabrechnung ) for the first time? T he cryptic calculation methods and bureaucratic German jargon can make it difficult to understand.

How to send salary slip to employees