Your first payslip (Gehaltsabrechnung) can look like a wall of numbers. Behind each line, though, the logic is simple: gross pay is reduced by taxes and social insurance contributions, and the result is the amount that reaches your account. This guide explains how to read the payslip line by line and where mistakes usually show up.
Short answer: Your payslip shows gross pay, income tax (Lohnsteuer) with its surcharges, contributions to health, long-term care, pension and unemployment insurance, and the net amount. The employee share of social insurance is about 21 percent of gross pay in 2026, depending on your health insurer’s additional rate and on the childless surcharge. A worked example follows below. Last updated: October 2026.
The key points
- Gross pay is the base. All deductions are calculated from gross, not from net.
- Social insurance is split between you and your employer. Exceptions are the childless surcharge in long-term care, which you pay alone, and the health insurer’s additional rate, which is shared but varies by insurer.
- For 2026 the total pension contribution is 18.6 percent, unemployment insurance 2.6 percent and long-term care 3.6 percent.
- Income tax depends on your tax class and allowances. It cannot be derived with a flat rule.
- Compare payslips month by month, especially in the first year, and check every change.
Which lines appear on every payslip
The labels differ between employers and payroll software. The overview below helps you place the common terms.
| Line | What it means | Who pays |
|---|---|---|
| Gross pay (Bruttogehalt) | Agreed pay before any deductions | Employer pays, basis for all deductions |
| Income tax (Lohnsteuer) | Advance payment of income tax, depending on tax class and allowances | You |
| Solidarity surcharge and church tax | Only above certain thresholds or for church members | You |
| Health insurance | General rate plus your insurer’s additional rate, shared | You and employer |
| Long-term care insurance | Standard rate plus possibly the childless surcharge | Shared, surcharge you alone |
| Pension insurance | Statutory rate up to the contribution ceiling | You and employer |
| Unemployment insurance | Rate up to the contribution ceiling | You and employer |
| Net pay (Nettoauszahlung) | Amount transferred to your account | You receive it |
How social insurance contributions are calculated
Contributions are a percentage of gross pay, but only up to the respective contribution ceiling (Beitragsbemessungsgrenze). For employees whose monthly pay stays below these ceilings, the percentage gives a direct result. The 2026 rates come from official sources and the fact sheet of the GKV umbrella association.
- Health insurance: general rate 14.6 percent, shared. Your insurer’s additional rate comes on top, on average 2.9 percent for 2026, also shared. Your share is then 8.75 percent.
- Long-term care: 3.6 percent in total, so 1.8 percent for you. Childless employees aged 23 or older pay an extra 0.6 percentage points alone.
- Pension insurance: 18.6 percent in total, so 9.3 percent for you.
- Unemployment insurance: 2.6 percent in total, so 1.3 percent for you.
The additional rate is an average for 2026. Your health insurer may charge a higher or lower rate. The rate that counts is the one your insurer actually applies, which appears on your payslip or in its notice.
Worked example with 4,000 euros gross (assumption)
Assumption: you earn 4,000 euros gross per month, have no children and are over 23 years old. Your insurer charges the average additional rate of 2.9 percent. We leave income tax out of this example on purpose, because it depends on your tax class and allowances.
| Item | Your rate | Amount at 4,000 euros |
|---|---|---|
| Health insurance including additional rate | 8.75 percent | 350.00 euros |
| Long-term care including childless surcharge | 2.4 percent | 96.00 euros |
| Pension insurance | 9.3 percent | 372.00 euros |
| Unemployment insurance | 1.3 percent | 52.00 euros |
| Total social insurance | 21.75 percent | 870.00 euros |
| Net before tax | 3,130.00 euros |
Assumption: with a child and therefore without the surcharge, long-term care costs 72.00 euros. The total then drops to 846.00 euros and you keep 3,154.00 euros before tax. The tax deductions depend on your situation and can be estimated with the federal tax calculator (bmf-steuerrechner.de).
How to read your payslip step by step
Keep a calculator and last month’s payslip at hand for the check. That way you see at once whether a line has changed even though your salary has not.
- Check the gross pay first. It must match your contract, including allowances and bonuses.
- Check the tax class. It is listed on your tax card or in the electronic tax data you can see with the tax office.
- Compare the health insurance line with the additional rate of your insurer.
- Recalculate long-term care, pension and unemployment insurance with the rates above.
- Add all deductions and subtract them from gross. The result must match net pay to within a few cents.
- Keep your payslips. You need them for your tax return and for questions about pension entitlements.
Where mistakes usually show up
Errors are rarely intentional, but they become more likely after a job change, with part-time work or with bonuses. Pay attention to these points:
- The health insurer is wrong, or the additional rate does not match your notice.
- The childless surcharge is charged even though you have children or are under 23.
- The tax class does not fit your marital status, for example after a marriage or separation.
- Bonuses such as a Christmas payment are missing or shown twice.
If something is unclear, ask payroll first. If the question remains open, your health insurer or the responsible authority can help. A calculation with the tax calculator does not replace your payslip, but it shows whether the order of magnitude is right.
Frequently asked questions
Why is net pay so much lower than gross?
Because social insurance is deducted alongside income tax. At average salaries the contributions amount to about a fifth of gross pay. Taxes depend on your tax class. Net pay is the result of several deductions, not an error in the system.
Does my employer pay the other half of the contributions?
Yes. For health, pension, long-term care and unemployment insurance the employer normally pays the same share as you, with the exceptions described above. The childless surcharge is borne by the employee alone. These employer costs do not appear on your payslip but are part of the overall pay package.
Do I need to check my health insurer on the payslip?
Yes, because the additional rate differs between insurers. A change of insurer can affect your deductions. The rules for switching are covered in the German guide Erster Job: Gesetzlich oder privat krankenversichert? (in German).
What happens if I resign during probation?
The payslip keeps the same structure, but pay is calculated pro rata for the final period. Outstanding holiday entitlements must also be listed. The applicable notice periods are explained in the German guide on the probation period.
How to proceed now
- Put your first payslip next to your employment contract and check the gross pay.
- Recalculate health insurance and long-term care with your actual rates.
- Ask in writing about any deviation and keep the answer.
- Set a fixed date each month to check the payslip briefly.
Related guides
- Contribution Assessment Base 2026: Ceiling and Floor
- Long-Term Care Childless Surcharge 2026: Rates
- Nettogehalt 2026 als Berufseinsteiger
- Steuerklasse beim Berufseinstieg
Sources:
- GKV-Spitzenverband: Fact sheet on 2026 contribution parameters, status 1 January 2026
- Federal Ministry of Health: childless surcharge, accessed October 2026 (in German)
- Social Code Book III, section 341: unemployment insurance rate 2026 (in German)
- Federal notice on pension insurance contribution rates 2026 (in German)
Last updated: October 2026. This guide is general information, not individual advice.
