When you receive your first German payslip (Gehaltsabrechnung), the number of deductions can be surprising. Understanding what each deduction means helps you manage your finances and ensures you're being paid correctly.
This guide breaks down every component of a typical German payslip.
Your German payslip shows three main categories of deductions:
| Category | What's Deducted |
|---|---|
| Taxes | Income tax, solidarity surcharge, church tax |
| Social security | Health, pension, unemployment, long-term care insurance |
| Net salary | What you actually receive |
Your gross salary is your total earnings before any deductions. This is the amount stated in your employment contract.
From this gross amount, your employer deducts:
Germany uses a progressive tax system—the more you earn, the higher your rate.
| Tax Rate | Income Range |
|---|---|
| 0% | Up to ~€12,096 (2026 tax-free allowance) |
| 14–42% | Progressive rates |
| 45% | Income above €278,000 |
Most employees fall somewhere in the middle range.
Originally introduced to fund German reunification.
| Income Level | Solidarity Surcharge |
|---|---|
| Under ~€73,000/year | None (exempt since 2021) |
| Above ~€73,000/year | 5.5% of income tax |
Most employees no longer pay this.
If you're a registered member of the Catholic or Protestant church:
| Federal State | Rate |
|---|---|
| Most states | 9% of income tax |
| Bavaria, Baden-Württemberg | 8% of income tax |
Not a church member? You won't pay this. You can officially leave the church at the Standesamt (civil registry) to stop payments.
German social security is split equally between you and your employer. Here's what you pay (employee portion):
| Component | Rate |
|---|---|
| Base contribution | 7.3% (your share of 14.6% total) |
| Additional contribution | ~0.8–1.7% (varies by insurer) |
| Typical total | ~8.5% of gross |
| Component | Rate |
|---|---|
| Total contribution | 18.6% |
| Your share | 9.3% |
| Employer share | 9.3% |
| Component | Rate |
|---|---|
| Total contribution | 2.6% |
| Your share | 1.3% |
| Employer share | 1.3% |
| Component | Rate |
|---|---|
| Base rate | 3.4% total |
| Your share | 1.7% (1.95% if childless and over 23) |
| Employer share | 1.7% |
Childless employees aged 23 and older pay an additional 0.6% surcharge.
| Contribution | Your Share |
|---|---|
| Health insurance | ~8.5% |
| Pension insurance | 9.3% |
| Unemployment insurance | 1.3% |
| Long-term care insurance | 1.7% (or 1.95%) |
| Total | ~20.5–21% |
Plus taxes on top.
Your employer also contributes (this doesn't appear on your payslip but increases your total cost to the company):
| Contribution | Employer Share |
|---|---|
| Health insurance | 7.3% |
| Pension insurance | 9.3% |
| Unemployment insurance | 1.3% |
| Long-term care insurance | 1.7% |
| Total | ~19.6% |
This is what lands in your bank account—your gross salary minus all taxes and social security contributions.
A rough rule of thumb: expect 55–65% of your gross salary as net, depending on your tax class and situation.
Your payslip also shows cumulative figures for the year:
| Category | What It Shows |
|---|---|
| Total gross (year to date) | Cumulative gross earnings |
| Total tax paid | Cumulative income tax + solidarity + church tax |
| Total social security | Cumulative contributions |
| Total net | Cumulative net payments |
These help you track your annual totals for tax returns.
| German Term | English Translation |
|---|---|
| Bruttogehalt | Gross salary |
| Nettogehalt | Net salary |
| Lohnsteuer | Income tax |
| Kirchensteuer | Church tax |
| Solidaritätszuschlag | Solidarity surcharge |
| Krankenversicherung | Health insurance |
| Rentenversicherung | Pension insurance |
| Arbeitslosenversicherung | Unemployment insurance |
| Pflegeversicherung | Long-term care insurance |
| Steuerklasse | Tax class |
Your tax class affects how much income tax is withheld:
| Class | Who It's For |
|---|---|
| I | Single, divorced, or separated |
| II | Single parents |
| III | Married (higher earner in couple) |
| IV | Married (both earn similar amounts) |
| V | Married (lower earner in couple) |
| VI | Second or additional jobs |
| Topic | Remember |
|---|---|
| Gross vs. net | Expect 55–65% of gross as net |
| Social security | About 20% of your share |
| Taxes | Progressive—higher income = higher rate |
| Church tax | Only if you're a church member |
| Employer contribution | They pay another ~20% on top |
Understanding your payslip helps you manage your finances and plan for the future. If you have questions about your deductions or want to optimise your situation, professional advice can help.
At Stay, we help international residents understand the German system. If you'd like guidance, we're here to help.