'/%3E%3C/svg%3E){kind=small}
'/%3E%3C/svg%3E){kind=small}
In German job listings and employment contracts the annual or monthly gross salary (Brutto) is usually stated, but what arrives in your account is the net salary (Netto). Understanding the gap between the two helps you with salary negotiation and financial planning.
From Brutto to Netto
Two groups of deductions are subtracted from gross pay:
- Taxes: income tax (Lohnsteuer), the solidarity surcharge (Solidaritätszuschlag, for high incomes) and, if you are a member, church tax (Kirchensteuer).
- Social insurance: pension, health, long-term care (Pflege) and unemployment insurance. The employee and employer shares are roughly equal, and the employee’s total share is usually around 20 percent of gross pay (rates differ each year and by insurance; there are additional contributions for health and long-term care insurance in some circumstances).
Tax classes (Steuerklassen)
- Class I: single, divorced or separated.
- Class II: single parents with a child.
- Classes III and V: married couples; one is III (lower deduction) and the other V (higher deduction).
- Class IV: married couples with similar incomes.
- Class VI: a second job.
The chosen class affects only the monthly tax and is adjusted in the annual tax return. Most couples arrange it with the tax office through the ELSTER system. Tax guide | tax return
Essential steps after starting work
- Give your tax number (Steuer-ID) to your employer: Steuer-ID guide
- Choose and report your social insurance number (Sozialversicherungsnummer) and health insurance: health insurance
- Have a bank account to receive your salary: bank account
Mini-jobs and midi-jobs
- Minijob: up to €603 per month (2026); for the employee usually free of tax and with simple deductions, but with special insurance conditions.
- Midijob: between about €603.01 and €2,000 per month; the employee’s social insurance contribution is lower than normal.
- Working student (Werkstudent): students during term usually work at most about 20 hours per week and benefit from exemption from some insurance contributions. International students must also observe their residence rules: study guide
Note: whether you may work, and the number of days/hours allowed, depends on your type of residence and must be checked on the residence card or its supplement.
A tip for salary negotiation
Instead of looking at just one number, look at the whole package: the annual bonus (13th salary), leave, working hours, working from home, the employer’s pension scheme (Betriebsrente) and benefits. Make a realistic estimate with net-pay calculators (for example official calculators).
Employment contract: employment contract guide.
