Salary Calculator
Germany

Our salary calculator for Germany is adjusted to calculate the gross and net salary based on a few factors.

The calculation begins with the specified gross salary, to which the calculator applies a progressive income tax rate, solidarity surcharge (a small percentage that is typically applied to higher incomes), social contributions such as pension, health, and unemployment insurance, and other applicable payment levies. German citizens who are registered in religious communities might also be charged a church tax, which varies depending on the state.

After deducting taxes and contributions, the calculator generates the net salary, which is the amount deposited into the employee’s bank account every month. 

The costs for salary in Germany involve a couple of components and are applicable to both employees and employers. 

Starting from employee salary costs, each individual is subject to a progressive income tax of 0% to 45%, depending on the income, as well as social security contributions, typically at around 20-22% of the gross salary. For higher-income earners, it’s also mandatory to deduct a solidarity surcharge (Solidaritätszuschlag) of 5.5%, which is used to improve the infrastructure and economic situation nationwide, while for religious community members, a tax of 8-9% applies. 

Employers must also contribute to social security on top of the gross salary, which is also around 20-22%. This includes contributions for health, pension, and long-term care insurance, along with accident insurance and other costs specific to the company's size and industry.

Every employee in Germany is obligated to submit taxes on their earnings, which are directly deducted from their gross salary and paid to the tax authorities. The income taxes in Germany are calculated progressively, depending on the amount of earned income. 

Below, you can learn more about the current income tax rates and brackets in Germany:

-Income up to €11,604 per year: Tax rate of 0%.
-Income from €11,605 to €66,760: Tax rate from 14% to 42%.
-Income from €66,761 to €277,825: Tax rate of 42%.
-Income over €277,826: Tax rate of 45%.

*Please note that these rates can vary based on legislative changes.

In Germany, mandatory employee benefits include health, pension, unemployment, and long-term care insurance, with contributions for each split between the employer and the employee. 

Employees are also entitled to at least 20 days of paid annual leave, up to six weeks of paid sick leave, and parental leave with financial support. Maternity leave also provides paid time off before and after childbirth, and severance pay is common in cases of termination. 

In addition to mandatory benefits, employees in Germany often receive extra employee benefits such as travel and meal allowances, company cars or car allowances, and home-office support for remote workers. Many employers may also offer childcare subsidies, relocation assistance, and wellness programmes, including gym memberships and mental health services. 

Some employees in Germany receive additional bonuses like Christmas and holiday pay, profit-sharing schemes, and stock options to enhance employee satisfaction beyond the mandatory employment benefits. 

The difference between gross and net salary in Germany refers to how much of the total income is taxes and the amount the employee receives after deductions.

Gross salary is the total amount of money earned before deductions, including the base salary, any bonuses, and other compensation received by the employer. This amount doesn’t account for any mandatory contributions such as taxes, social security, health insurance, etc. 

On the other hand, the net salary is the amount of money after all the mandatory deductions have been made. These deductions include income tax, solidarity surcharge, church tax (if applicable), and social security contributions. Net salary represents the amount deposited into the employee’s account after all the legal deductions and is often referred to as “take-home pay”.