Gross (pay)

Brutto (gross) means "before deductions" – the total amount before taxes, social security contributions or VAT are deducted.

Gross salary:

• Your gross wage is the amount agreed in your employment contract
• Deducted from it: wage tax, solidarity surcharge, church tax if applicable, pension/health/long-term care/unemployment insurance
• What's left: your net pay

Rule of thumb gross → net (in Germany):

• Under €2,500 gross: approx. 72–75% remains as net
• €3,000–4,000 gross: approx. 65–68% remains as net
• €5,000–6,000 gross: approx. 60–63% remains as net
• Over €8,000 gross: approx. 55–58% remains as net

Gross prices:

• Gross price: consumer price incl. 19% VAT (or 7% reduced rate)
• Net price: price without VAT (relevant for businesses that can deduct input tax)
• Conversion: net × 1.19 = gross

Employer's gross cost:

• Your employer pays approx. 21% social security contributions ON TOP
• An employee with €3,500 gross costs the employer approx. €4,235