How can I find out my salary in Germany? This is a question that all international nursing professionals who come to Germany for the first time ask themselves sooner or later. Getting a clear answer can often be complicated. Indeed, German salary scales work somewhat differently than in other countries. In addition, these scales are particularly long and are negotiated by the public sector and trade unions. They therefore offer a great deal of security, but require some explanation. We explain the most important key points!

What is "income" in Germany?

In Germany, there are two types of income: gross salary and net salary. The gross salary is what the employee receives from their employer before taxes and duties are deducted. The net salary is what the employee actually has available to cover their living expenses.

The calculation of the gross salary

The gross salary is calculated according to the collective agreement of the respective employee. In Germany, there are many different collective agreements that apply to different industries and occupational groups. The amount of the gross salary depends on various factors, such as the employee's professional experience, qualifications and position.

The calculation of the net salary

Various taxes and duties are deducted from the gross salary to determine the net salary. The most important deductions include

• Wage tax
• Church tax (depending on the federal state)
• Health insurance
• Pension insurance
• Unemployment insurance
• Long-term care insurance

The difference between gross and net salary

The difference between gross and net salary is not insignificant. In Germany, the average deduction of taxes and duties is around 20%. This means that an employee with a gross salary of 3,000 euros only has around 2,400 euros net at their disposal. On top of this, there is also insurance - this is mandatory in Germany and is deducted directly from the salary, leaving just under 2,000 euros.

Calculation of the net salary

The salary determined by the government and the trade unions and paid to a nurse is a gross salary, i.e. before deduction of taxes and duties. These are then paid by the employer to the tax office each month at the time the salary is paid and depend on several variables. The various German taxes are:

• Income tax
• Church tax
• Solidarity surcharge
• Additional contributions and others

Each contract is therefore an individual case. In addition, the amount of tax to be paid is calculated according to the tax bracket, which depends on the taxpayer's family situation (marital status and number of children). Various situations are taken into account. The income tax class ranges from I to VI:

• I = single
• II = single parent
• III = married, with two incomes, it refers to the higher income of the two spouses
• IV = married, both spouses earn the same
• V = married, with two incomes, it refers to the lower income of the two spouses
• VI = Secondary job

Case study on the salary of a German caregiver
Finally, the following case study can be created. Let us take the case of a caregiver who is characterized by the following administrative features and still works as a care assistant:

• non-Christian (e.g. Muslim, Buddhist, etc.)
• not yet recognized as a caregiver ("P5")
• Single and without children
• no additional health insurance contributions to be paid
• Start of work in 2020
• lives in North Rhine-Westphalia
• with 0 years of experience in Germany (column "1")

So we get a gross annual salary of €30,405 and a net annual salary of €20,630! For the other tax brackets, we then find the table below with the gross and net salaries per month.

The positive sides of deductions

Although tax deductions are annoying, they also have their positive sides. For example, they ensure that employees in Germany have a good social security system. This includes, for example, statutory health insurance, pensions and unemployment insurance. Our tip for everyone: German dentists have an excellent reputation, the practices are very modern and the treatment is largely covered by statutory health insurance (exception: teeth cleaning).

Conclusion

The calculation of gross and net salary in Germany is quite complex. It is important to understand the various factors that affect the net salary. You can calculate your net salary quickly and easily using a gross-net calculator.
What are the deductions for?

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