Reading your payslip

Your German payslip explained step by step:

Top: your details

• Tax class, child allowances, church tax status, tax ID

Middle: the deductions

Taxes (paid by the employee alone):

• Wage tax: 14–45% progressive (the biggest deduction)
• Solidarity surcharge: 5.5% of wage tax (no longer applies for 90%)
• Church tax: 8–9% of wage tax (only for church members)

Social security contributions (split half and half between employer/employee):

• KV: health insurance approx. 8.15% (employee share)
• RV: pension insurance 9.3% (employee)
• AV: unemployment insurance 1.3% (employee)
• PV: long-term care insurance 1.7–2.3% (employee, more for the childless)

Bottom: your net pay

• Gross − taxes − social security contributions = net (what lands in your account)

Example €3,500 gross, tax class I, no children, not a church member:

• Wage tax: approx. €430
• Health insurance: approx. €285
• Pension insurance: approx. €326
• Unemployment insurance: approx. €46
• Long-term care insurance: approx. €70
• Net: approx. €2,343