Calculation of net wages in Germany

Salaries in Germany look really attractive at first glance. Compared to the Czech Republic, the amount of earnings in the same position can climb up to three times. But how much will compulsory levies and taxes cut from your payment? Calculating the net wage in Germany is relatively complicated. Calculate what your net income will be when working in Germany.

What affects the level of taxation in Germany

In Germany, the classification in the tax class and the amount of earnings have the greatest influence on the amount of taxation.

There are six tax classes and they favor spouses and families with children - especially those who depend on only one income.

German salary calculation is progressive, meaning that the more you earn, the higher the percentage of your earnings will be taxed. As a result, low-income employees are favored.

In addition, employees in the lander of the former West Germany are paid a so-called solidarity supplement, which was introduced for the reconstruction of the former East Germany after the reunification of the country.

You can volunteer to pay church taxes. They will deduct this from your salary if you state your religion when registering to stay in Germany. Its amount varies from state to state.

The employee pays from the gross salary (for 2019):

health insurance: 7.3% + surcharge (Zusatzbeitrag) according to your health insurance company, from which you pay half. Find out its amount at individual insurance companies.

pension insurance: 9.3%

unemployment insurance: 1.20%

social insurance in case of dependence on long-term care: 1.775%

income tax: varies depending on the tax class and the amount of gross salary

Solidarity Supplement: only in the Länder of the former West Germany

Church tax: voluntary, its amount varies in the Lander

How to calculate the net salary in Germany

The easiest way to calculate the net wage in Germany is to use an online calculator. Just fill in a few details and you can calculate your net income with one click.

After clicking on Berechnen, your net salary and the amount of individual contributions will pop up. Don't be fooled by their percentages. These are given as the sum of the% paid by the employee (AN - Arbeitnehmer) and the employer (AG - Arbeitgeber). When you click on the blue letter next to each item, you will see how the percentages add up. However, only your levies and taxes are given in absolute terms in €.

How high are the taxes in Germany compared to the Czech Republic

According to an OECD comparison from 2017, Germany has the second highest overall tax burden - ie. contributions to health and social insurance for employees and employers and income tax. A single and childless person with an average wage will reach a tax burden of almost 50%, compared to 43.4% in the Czech Republic. However, you may not be interested in how much your employer pays for you, because it will not affect your net income.

Therefore, for a better idea, I compared the net income and% tax burden of only employees for a gross wage of € 1,600, € 2,500, € 3,700 and € 5,000 for a single, childless person, who pays church tax, lives in Bavaria and is insured with AOK Bayern.

In the Czech Republic, the employee pays lower contributions for health insurance 4.5% and social insurance 6.5%. While in the Czech Republic the income tax is linear 15%, in Germany its rate is progressive and increases with increasing income.

The table shows that with the minimum wage, taxes are very low, and with the increase in the gross wage approximately three times, tax levies more than tenfold. Therefore, when comparing job offers in Germany, always calculate your net salary, so that you have at least a rough idea of??how much you will receive in your account each month.