Your first payslip (Gehaltsabrechnung) can look like a wall of numbers. Behind every line, however, there is a clear rule that you can check yourself. This guide explains the main deductions, shows a worked example for social insurance contributions and tells you what to look at in your first month.
In short: Taxes and social insurance contributions are deducted from your gross salary. For employees in 2026, social insurance contributions come to about 21.15 percent of gross pay, or about 21.75 percent with the childless surcharge in long-term care insurance. This assumes an average additional health insurance contribution of 2.9 percent (as of January 2026). Income tax (Lohnsteuer) comes on top and is not calculated here.
The most important points at a glance
- Gross pay is what you agreed on before deductions. Net pay is the amount that reaches your bank account.
- As an employee you pay half of the contributions to health, long-term care, pension and unemployment insurance. Your employer pays the other half.
- The childless surcharge in long-term care insurance applies from the month after your 23rd birthday, if you have no children, and you pay it alone (as of January 2026).
- Income tax depends on your tax class and allowances. It cannot be estimated reliably in your head.
- Check every payslip against your contract, especially in the first month.
Which items appear on your payslip?
Most employers use a similar layout. The table shows the most common items and what they mean.
| Item | What it means | How to recognise it |
|---|---|---|
| Gross pay | Your agreed salary before deductions | Usually at the top, matches your contract |
| Income tax (Lohnsteuer) | Advance payment on your income tax | Depends on your tax class |
| Solidarity surcharge (Solidaritätszuschlag) | Surcharge on income tax, with an exemption limit | Appears only when the exemption limit is exceeded |
| Church tax (Kirchensteuer) | Only for church members | Missing if you are not a member of a tax-collecting religious community |
| Health insurance | Employee share of statutory health insurance | Includes the general rate and your additional contribution |
| Long-term care insurance | Employee share, possibly with childless surcharge | A separate surcharge appears for childless employees from age 23 |
| Pension insurance | Employee share of pension insurance | Usually the largest social contribution |
| Unemployment insurance | Employee share of unemployment insurance | Smallest social contribution |
| Capital-forming benefits (vermögenswirksame Leistungen) | Employer contribution toward savings | Only if you agreed on such benefits |
| Net pay | Amount transferred to your account | Usually at the bottom as the result |
Check the social insurance contributions yourself
Social insurance contributions are easy to recalculate, because the rates are public. The example uses assumptions that you can adjust to your situation.
- Assumption: your gross monthly salary is €3,000. You are in statutory health insurance, have no children and are 23 or older.
- Health insurance: the general rate is 14.6 percent, so your half is 7.3 percent. Add half of the additional contribution of 2.9 percent, which is 1.45 percent. Total 8.75 percent, which gives €262.50.
- Long-term care insurance: the rate is 3.6 percent, so your half is 1.8 percent. The childless surcharge of 0.6 percentage points is paid by you alone, giving 2.4 percent in total. That gives €72.00.
- Pension insurance: the rate is 18.6 percent, so your half is 9.3 percent. That gives €279.00.
- Unemployment insurance: the rate is 2.6 percent, so your half is 1.3 percent. That gives €39.00.
- Total: €262.50 plus €72.00 plus €279.00 plus €39.00 gives €652.50. Without the childless surcharge, the total would be €634.50.
| Contribution | Employee share | Amount at €3,000 (assumption) | Source |
|---|---|---|---|
| Health insurance incl. additional contribution | 8.75 percent | €262.50 | Section 241 SGB V |
| Long-term care insurance incl. childless surcharge | 2.40 percent | €72.00 | Federal Ministry of Health |
| Pension insurance | 9.30 percent | €279.00 | Contribution rate notice 2026 |
| Unemployment insurance | 1.30 percent | €39.00 | Section 341 SGB III |
This calculation applies only as long as your gross pay stays below the contribution ceilings. For 2026 these are €5,812.50 per month for health and long-term care insurance and €8,450 per month for pension and unemployment insurance (as of January 2026). Your employer also pays its half, which does not appear on your payslip but is part of what the job costs.
Income tax: do not calculate it in your head
Income tax depends on your tax class, your allowances and your family situation. Your tax class and allowances are transmitted to your employer electronically (section 39e EStG). A part of your income stays tax-free, because the basic allowance for 2026 is €12,348 per year (as of January 2026, section 32a EStG).
Your employer also deducts the employee lump-sum allowance (Arbeitnehmerpauschbetrag) of €1,230 per year automatically, so you do not need to submit receipts for it (section 9a EStG, as of January 2026). The exact calculation is still too individual to work out here. Use the tax calculator of the Federal Ministry of Finance for the figure.
What to check on your first payslip
- Name, date of birth and tax identification number are correct, and the tax class fits your family status.
- Your gross pay matches your contract, including allowances and the pro-rated amount for your start month.
- The health insurance fund and additional contribution match your choice.
- The childless surcharge appears only where it really applies.
Common questions
Why is my net pay lower than I expected?
Net pay is gross pay minus income tax, the solidarity surcharge and social insurance contributions. A common reason is income tax, which depends on your tax class. A part-month in your start month can also affect the amount.
What is the additional contribution?
The additional contribution is a fund-specific percentage that your health insurance fund charges on top of the general rate. The average rate for 2026 is 2.9 percent (as of January 2026, GKV umbrella organisation). Your fund will tell you its rate on request.
Should I change my tax class myself?
Not if it fits your family status. A change makes sense only when your situation changes, for example after a marriage. Then the tax office responsible for you can help you adjust it.
Why is there a line for capital-forming benefits?
If you agreed on capital-forming benefits, the employer contribution appears as a separate item. The money goes into a savings contract. Whether that makes sense depends on the type of investment and on the state savings bonus, which we explain in our guide to capital-forming benefits (in German).
What to do now
- Place your employment contract next to your payslip and compare gross pay and allowances.
- Recalculate the social insurance contributions with the rates from this guide.
- Calculate income tax with the tax calculator of the Federal Ministry of Finance.
- Clarify any differences with HR straight away, and keep the payslip.
Related reading
- Berufseinsteiger in Zahlen 2026: Grenzen, Gehalt und Fakten
- Part-Time Jobs and Taxes for Students in Germany
- Versicherungspflichtgrenze 2026: Ab wann du die GKV-Pflicht verlierst
- Krankenversicherung im Berufseinstieg: Wann du in die PKV wechselst (in German)
Sources: Section 241 SGB V, contribution rate (as of October 2026) · Section 341 SGB III, unemployment insurance contribution rate · Section 39e EStG, electronic tax deduction characteristics · Section 9a EStG, employee lump-sum allowance (as of January 2026) · GKV umbrella organisation, fact sheet on 2026 reference values (as of January 2026) · Tax calculator of the Federal Ministry of Finance
Last updated: October 2026. This guide is general information, not individual advice.
