Your first payslip can look like a wall of figures. Once you understand it, you see quickly what remains of your gross pay, why, and whether everything is correct. This guide explains gross pay, net pay and deductions, shows the 2026 social security contributions and works through an example step by step.
Short answer: Gross pay is your agreed salary before deductions, and net pay is the amount that reaches your account. In between are income tax and social security contributions. For 2026 you as an employee pay 9.3 percent pension insurance, 1.3 percent unemployment insurance, 7.3 percent health insurance plus half the additional contribution, and 1.8 percent long-term care insurance. Last updated: October 2026.
The most important points
- Gross pay is the agreed salary before all deductions. Net pay is what is transferred after all deductions.
- Social security contributions are usually split equally between employer and employee.
- The additional contribution of your health insurer is also split in half. The 2026 average is 2.9 percent.
- The childless surcharge in long-term care insurance of 0.6 percentage points is paid by you alone, if you are childless and have passed your 23rd birthday.
- Income tax depends on your tax class and income. The basic allowance for 2026 is 12,348 euros per year.
- Check every payslip for tax class, health insurer and additional contribution. These are the most common sources of errors.
What is on a payslip?
Most payslips follow a similar structure. Gross pay and working hours come first, then the deductions, and net pay at the end. The table explains the main items. Terms are given in German, as used on the payslip.
| Item | What it means | Typical question |
|---|---|---|
| Brutto (gross pay) | Agreed pay before deductions | Does it match my contract? |
| Lohnsteuer (wage tax) | Income tax your employer withholds | Is my tax class right? |
| Solidaritätszuschlag (solidarity surcharge) | Surcharge on tax, applies only above a threshold of tax liability | Is it due at all? |
| Kirchensteuer (church tax) | Only for members of a church | Does it appear although I am not a member? |
| Sozialversicherung (social security) | Pension, unemployment, health and long-term care insurance | Is my health insurer recorded correctly? |
| Netto (net pay) | Amount transferred to your account | Does the amount match my calculation? |
How high are social security contributions in 2026?
The rates below apply for 2026. The table shows the total rate and your share as an employee, based on the figures of the Techniker Krankenkasse (status January 2026, in German).
| Insurance | Total rate 2026 | Your share as an employee |
|---|---|---|
| Pension insurance | 18.6 percent | 9.3 percent |
| Unemployment insurance | 2.6 percent | 1.3 percent |
| Health insurance (general rate) | 14.6 percent | 7.3 percent |
| Additional contribution (average) | 2.9 percent | Half, so 1.45 percent |
| Long-term care insurance | 3.6 percent | 1.8 percent, plus 0.6 percent if childless from age 24 |
Employees alone bear the childless surcharge, which applies to childless members from the 24th year of life. This follows the Federal Ministry of Health on the childless surcharge (in German, status 14 September 2026).
Worked example: from gross to net
Assumption: you earn 3,000 euros gross per month, you are childless and 24 years old, you live in a federal state without special rules and your health insurer charges the average additional contribution of 2.9 percent. The contribution ceilings are far above your salary, so all contributions apply in full.
- Pension insurance: 3,000 times 9.3 percent gives 279.00 euros.
- Unemployment insurance: 3,000 times 1.3 percent gives 39.00 euros.
- Health insurance: 7.3 percent plus half of 2.9 percent, which is 8.75 percent. That gives 3,000 times 8.75 percent, so 262.50 euros.
- Long-term care insurance: 1.8 percent plus the 0.6 percent childless surcharge, 2.4 percent in total. That gives 3,000 times 2.4 percent, so 72.00 euros.
- Social security contributions in total: 279.00 plus 39.00 plus 262.50 plus 72.00 gives 652.50 euros.
- Net pay before wage tax: 3,000 minus 652.50 gives 2,347.50 euros. Your employer then deducts the wage tax.
We deliberately do not calculate the wage tax here, because it depends on your tax class and other details. Your actual net pay is on your payslip and lies below this figure after the wage tax deduction.
Why can your net pay differ?
Several factors change the amount. Your tax class determines how much wage tax is withheld each month. A health insurer with a higher additional contribution noticeably lowers your net pay. Special payments, allowances or salary conversion can also change the payslip. Do not compare just one month, but check each item.
Frequently asked questions
What is the difference between gross and net pay?
Gross pay is the salary in your contract before anything is deducted. Net pay is the amount after all deductions, which is what you actually receive.
Why do I not pay 14.6 percent for health insurance?
The general rate of 14.6 percent is split between you and your employer, so 7.3 percent each. Your insurer’s additional contribution comes on top and is also split. The average of 2.9 percent is a guide, because your insurer sets the actual rate.
What do tax classes I to VI mean?
The tax class determines how wage tax is calculated. For single first-job starters, class I is usually the right one. You change the tax class through the tax office, not through your employer. For a first overview of student taxes, see Steuern für Studenten (in German).
What is the contribution ceiling?
Contributions to health, long-term care and pension insurance are calculated only up to an upper limit, the contribution ceiling. For 2026 it is 5,812.50 euros per month for health and long-term care insurance and 8,450 euros per month for pension insurance (official). Your example salary is far below both, so all contributions apply in full.
What should I do if deductions are wrong?
Speak to payroll or HR first. For tax questions, the tax office is the right contact. Keep all payslips and note which item seems wrong.
Do I always have to pay the childless surcharge?
Only if you are childless and have passed your 23rd birthday. From the 24th year of life the surcharge applies. There are exceptions, for example for recipients of certain social benefits. If in doubt, clarify your case with your health insurer.
What to do next
- Compare the gross pay with your employment contract: monthly salary, working hours and agreed allowances.
- Check tax class, health insurer, additional contribution and the childless surcharge on the payslip.
- Recalculate the contributions with the rates above and compare them with your payslip.
- Clear up any discrepancy first with payroll and, for tax questions, with the tax office.
Related guides
- Master or Work: Which Path Pays Off More?
- Health Insurance Income Limit 2026: What It Means
- Versicherungspflichtgrenze 2027: Ab welchem Gehalt du in die PKV darfst
- Berufseinstieg nach dem Studium: So gelingt dir der Start (in German)
Sources: Techniker Krankenkasse: current contribution rates in social security, in German (status January 2026); Federal Ministry of Health: childless surcharge, in German (status 14 September 2026); Gesetze im Internet: section 32a of the Income Tax Act, in German (accessed October 2026).
Last updated: October 2026. This guide is general information, not individual advice.
