How a German payslip is structured
A German payslip (Gehaltsabrechnung or Lohnabrechnung) is issued monthly by your employer and shows your gross salary, all deductions, and your net pay. It is typically sent as a PDF or accessible through your employer's HR portal.
Unlike some countries where payslips are summaries, a German Gehaltsabrechnung is detailed and legally required to itemise every contribution. It can look overwhelming at first — but the structure is consistent and once you understand it, every payslip reads the same way.
The main sections are:
- Personal and employment data — your name, tax ID, social insurance number, Steuerklasse, and employment details
- Gross earnings — your base salary plus any additional payments
- Employer contributions — social insurance amounts your employer pays on top of your gross salary (shown for information; not deducted from your pay)
- Employee deductions — income tax, your share of social insurance, and any church tax
- Net salary — what lands in your bank account
Gross salary and allowances
The top section of your payslip shows your Bruttogehalt (gross salary). This is your agreed monthly salary before any deductions.
Below it you may see additional items:
- Vermögenswirksame Leistungen (VL) — employer contributions to a savings scheme. Some employers add €20–40/month toward a savings product of your choice. Optional to participate.
- Sachbezüge — non-cash benefits (company car, meal vouchers, etc.) valued and listed at their taxable amount
- Zuschläge — supplements for overtime, night shifts, or Sunday work, sometimes partially tax-exempt
The total gross (Gesamtbrutto) is the number all deductions are calculated from.
Income tax (Lohnsteuer)
Lohnsteuer (wage tax) is the main income tax deduction. It is calculated based on:
- Your Steuerklasse (tax class I–VI — see the tax class guide for detail)
- Your gross salary
- Any Freibeträge (allowances) you have registered with the Finanzamt
In Steuerklasse I (the default for single newcomers), the effective rate on a mid-range German salary is typically 18–25% — but the marginal rate is higher because Germany uses a progressive tax schedule.
Solidaritätszuschlag (Soli) — the solidarity surcharge appears on payslips but effectively zero for most employees since 2021. It only applies to very high earners (roughly above €70,000 taxable income). You may see a €0 or very small amount on your payslip — this is correct.
Social insurance contributions (SV-Beitrag)
The Sozialversicherungsbeiträge (SV-Beitrag, social insurance contributions) are the largest deductions after income tax. Germany has four mandatory social insurance schemes, and the cost is split roughly 50/50 between employer and employee:
1. Krankenversicherung (KV) — Health insurance
- Total rate: approximately 14.6% of gross salary, plus a provider-specific additional contribution (Zusatzbeitrag, typically 1.5–2%)
- Your share: approximately 7.3% + half the Zusatzbeitrag
- Example: on a €4,000 gross salary, your KV contribution is roughly €300–320/month
Your insurer name appears on the payslip (e.g., TK, DAK, Barmer). If the insurer shown does not match your actual insurer, contact HR immediately.
2. Pflegeversicherung (PV) — Care insurance
- Total rate: 3.4% of gross salary (3.9% if you have no children)
- Your share: approximately 1.7–1.95%
- A small deduction but mandatory for everyone in statutory health insurance
3. Rentenversicherung (RV) — Pension insurance
- Total rate: 18.6% of gross salary (up to the contribution ceiling)
- Your share: 9.3%
- This funds Germany's public pension system. You can claim this back partially if you leave Germany within 2 years of leaving employment (for non-EU citizens with less than 5 years of contributions) or receive it as a German pension at retirement age.
4. Arbeitslosenversicherung (AV) — Unemployment insurance
- Total rate: 2.6% of gross salary
- Your share: 1.3%
- Entitles you to Arbeitslosengeld (unemployment benefit) if you lose your job, provided you worked at least 12 months in the 2 years before becoming unemployed.
All four contributions are capped at a ceiling (Beitragsbemessungsgrenze) — in 2025, roughly €7,300/month (West Germany) and €7,100/month (East Germany). Earnings above this cap are not subject to social insurance contributions.