How Salary Calculation Works in Germany

German salaries are subject to income tax (Einkommensteuer), solidarity surcharge (Solidaritätszuschlag), and four types of social insurance. Employers withhold all deductions monthly.

Social insurance includes health insurance (Krankenversicherung, ~8.2% employee share), pension insurance (Rentenversicherung, 9.3%), unemployment insurance (Arbeitslosenversicherung, 1.3%), and long-term care insurance (Pflegeversicherung, 1.7-2.3%). Each type has its own income ceiling.

The take-home pay shown represents the employee's share. Employers contribute roughly equal amounts for each social insurance type on top of your gross salary.

Data source: https://www.bundesfinanzministerium.de

Last verified: 2026-04-25