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What is gross and what is net?

In Germany, a distinction is made between gross wages and net wages: The gross wages are the wages specified in the employment contract. Various contributions are deducted from the gross wages. These include, for instance, social insurance contributions, as well as pension insurance, unemployment insurance, health insurance, long-term care insurance and accident insurance.

The contributions for pension, unemployment, health and long-term care insurance are shared between the employer and the employee. Your employer therefore pays the same amount that is deducted from your wages.

In addition to social insurance, taxes are also deducted from gross wages. The net wages are the wages that are paid at the end after deduction of all contributions and taxes. You can calculate how much net wages you will receive online using a gross net calculator, e.g. at www.brutto-netto-rechner.info.

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