Your payslip is the first document that shows what your salary really looks like, and it contains more errors than most people expect. If you read it carefully in your first month, you spot deductions that are wrong and entitlements that are missing.
Short answer: When you start work, check your payslip on six points: tax class, health insurance with its supplementary contribution, care insurance surcharge, minimum wage, leave entitlement and sick pay. In 2026, health, care and pension insurance together cost employees around 20 percent of gross pay. Last updated: October 2026.
The key points in brief
- Your tax class determines your wage tax. A wrong entry changes your net pay every month.
- Your health insurer passes its supplementary contribution on to your employer. Check that the name and rate are right.
- Employees without children pay a care surcharge from the month after they turn 23.
- The statutory minimum wage applies from the first hour, with a few legal exceptions.
- The full leave entitlement arises only after six months of employment.
Which deductions appear on your payslip?
The payslip shows gross pay, wage tax, social security contributions and net pay. Social security covers health, care, pension and unemployment insurance. Employer and employee usually share the contribution rates equally. The overview below shows the 2026 rates:
| Insurance | Total rate 2026 | Employee share |
|---|---|---|
| Health insurance, general rate | 14.6 percent | 7.3 percent |
| Supplementary contribution (average) | 2.9 percent | 1.45 percent |
| Care insurance | 3.6 percent | 1.8 percent |
| Childless surcharge, from age 23 | 0.6 percentage points | 0.6 percentage points (paid by you alone) |
| Pension insurance | 18.6 percent | 9.3 percent |
| Unemployment insurance | Rate set by the Federal Employment Agency | Rate set by the Federal Employment Agency |
The supplementary contribution is an average. Your health insurer may charge a different rate, so compare your payslip with the rate your insurer has set. The 2026 contribution ceilings are 5,812.50 euros per month for health and care insurance and 8,450 euros per month for pension insurance.
What are the social security contributions on 3,500 euros gross?
Assumption: gross salary 3,500 euros per month, no children and over 23 years old, health insurer with the average supplementary contribution of 2.9 percent. The contribution ceilings are not reached.
| Deduction | Calculation | Amount |
|---|---|---|
| Health insurance | 3,500 euros x 8.75 percent | 306.25 euros |
| Care insurance including surcharge | 3,500 euros x 2.4 percent | 84.00 euros |
| Pension insurance | 3,500 euros x 9.3 percent | 325.50 euros |
| Total without unemployment insurance and wage tax | 715.75 euros |
Wage tax and unemployment insurance are left out on purpose. Wage tax depends on your tax class and allowances, and for it you can use the tax calculator of the Federal Ministry of Finance. The unemployment insurance rate is published by the Federal Employment Agency.
Which six mistakes should you check first?
- Wrong tax class. Wage tax follows tax classes I to VI (section 38b EStG). Single people are usually in class I, single parents in class II. The entry is transmitted to the employer through the electronic wage tax deduction features (ELStAM, section 39e EStG).
- Wrong health insurer or supplementary contribution. The employer passes on the supplementary contribution of your insurer. If the name or rate is wrong, ask your insurer. The 2026 average is 2.9 percent.
- Childless surcharge wrongly applied or missing. The surcharge applies to insured people without children from the month after they turn 23. It does not apply if you have children.
- Minimum wage underpaid. Compare the paid hours with your actual working time. The statutory minimum wage in 2026 is 13.90 euros gross per hour.
- Leave calculated wrongly. The full entitlement arises only after a waiting period of six months (section 4 BUrlG). In the first half year you have pro-rata leave, which should be traceable on the payslip or in your contract.
- Sick pay wrongly calculated. Continued pay in case of illness starts after four weeks of uninterrupted employment (section 3(3) EFZG) and covers up to six weeks of incapacity to work.
What about allowances and the commuting allowance?
The commuting allowance (Entfernungspauschale) does not automatically reduce your ongoing wage tax. If you want to lower the tax during the year, you can have an allowance entered through your tax office. The data is provided by the Federal Central Tax Office, and your employer retrieves it monthly. More on work-related expenses and the commuting allowance is in the guide Tax return for your first job.
How do you read the payslip line by line?
Read the payslip from top to bottom. At the top are usually the master data: tax ID, tax class, health insurer and contribution group. Then come gross pay and allowances, followed by the deductions, and at the bottom the net pay. Check the master data first, because one wrong field often causes several follow-up errors.
- Master data: tax ID, tax class, health insurer and contribution group
- Gross pay with allowances, overtime and supplements
- Deductions: wage tax, solidarity surcharge, social security and other items
- Leave and hours account, if the payslip shows them
- Net pay and the transfer amount that should arrive in your account
The solidarity surcharge applies only at higher incomes, so it does not appear on every payslip. You can check the amounts with the tax calculator if you know your tax class and allowances.
Frequently asked questions
Do I have to keep my payslips?
Yes. You need payslips for your tax return, for applications such as parental allowance or housing benefit, and for loan applications. Keep them at least for the duration of the tax deadlines and save a digital copy.
What do I do if I find a mistake?
First talk to payroll or the HR department and name the line and the amount. Ask for the correction in writing. For tax errors, the tax office can help; for contribution errors, your health insurer.
Is gross or net pay the right basis for comparison?
For job offers, gross pay is the basis, because all deductions start from it. Net pay depends on tax class, contributions and allowances. For your situation, the tax calculator of the Federal Ministry of Finance gives you a comparison.
What appears on the payslip for capital-forming benefits?
Capital-forming benefits (vermögenswirksame Leistungen) usually appear as a separate line. Check that the amount matches your contract and any employer contribution, and keep the contract together with the payslip.
What should you do now?
- Check tax class, health insurer and supplementary contribution against your documents from the hiring process.
- Recalculate gross pay and deductions for one month, for example with the table above.
- Compare hours, minimum wage and leave days with your contract and time records.
- Report errors in writing to payroll and ask for a correction.
- Save every payslip digitally and note the month you checked it.
Related guides
- Part-Time Jobs and Taxes for Students in Germany
- Minijob or Student Job: Limits in Figures Compared
- Starting work: avoid the biggest mistakes (in German)
- Negotiating salary as a woman
Sources: GKV-Spitzenverband, fact sheet on 2026 calculation values (status 1 Jan 2026); contribution rate notice 2026 for pension insurance; section 38b EStG, wage tax classes; section 4 BUrlG, waiting period (all accessed October 2026).
Last updated: October 2026. This guide is general information, not individual advice.
