How to read a payslip in Germany: every line explained

Learning how to read a payslip in Germany is worth an hour of your time, because the gap between your gross salary and what lands in your account is often larger than people expect. A German payslip, called Gehaltsabrechnung, Lohnabrechnung or Entgeltabrechnung, packs taxes, four kinds of social insurance and a string of codes into a single page.

This guide walks through the document section by section, explains the German terms you will see and shows how to check that everything adds up. It is general information, not tax or legal advice; if a figure looks wrong, ask your payroll department or a tax adviser.

What a German payslip must contain

Employers in Germany must give you a pay statement in text form when they pay you. A federal regulation sets out what belongs on it, so most payslips follow a similar pattern even when the layout differs between payroll providers.

The top part usually holds your personal and employment data. Check it carefully, because a wrong tax class or a missing child allowance changes the tax withheld every single month.

• Employer name and address, and your name, address and date of birth
• Your tax identification number (Steuer-ID) and social insurance number (Sozialversicherungsnummer)
• Start date of employment and the pay period covered
• Tax class (Steuerklasse), child allowances (Kinderfreibeträge) and church tax status (Konfession)
• Your health insurance fund (Krankenkasse)

Gross pay (Brutto): what you earn before deductions

The earnings block lists everything your employer pays you for the period: base salary, overtime, bonuses, shift or night supplements, holiday or Christmas pay and any benefits in kind. The total is your gross pay, or Gesamtbrutto.

You may also see two slightly different gross figures. Steuerbrutto is the amount income tax is calculated on, and SV-Brutto is the amount social insurance is calculated on. They can differ because some items, such as certain tax-free allowances or company pension contributions, are treated differently for tax and for social insurance.

Benefits in kind, called geldwerter Vorteil or Sachbezug, deserve a close look. A company car used privately, for example, is added to your gross pay for tax purposes and then deducted again further down, because you never received that money in cash.

The most expensive payroll errors are the ones that repeat every month until someone notices.

Tax deductions: Lohnsteuer, Soli and Kirchensteuer

Lohnsteuer is income tax withheld by your employer and passed to the tax office. The amount depends mainly on your taxable gross pay and your tax class. Tax class I applies to most single people, class II to single parents, classes III, IV and V to married couples and registered partners, and class VI to a second or further job.

The Solidaritätszuschlag, or Soli, is a surcharge on income tax. Since 2021 most employees no longer pay it because of a high exemption threshold, so on many payslips this line shows zero. Higher earners still see a deduction.

Kirchensteuer, church tax, applies only if you are registered as a member of a church that collects it. It is a percentage of your income tax: 8 percent in Bavaria and Baden-Württemberg and 9 percent in the other states. If you see church tax and are not a member, contact the tax office to correct your records.

Social insurance deductions explained

Germany's social insurance system is funded by contributions that employers and employees broadly share. Your payslip shows only your share, usually in four lines. The rates are set by law and change from time to time, and contributions stop rising once your pay passes an annual ceiling (Beitragsbemessungsgrenze).

If you earn above a certain level and have chosen private health insurance, the health and care lines look different: your employer pays a subsidy towards your private premium instead of deducting statutory contributions.

• KV (Krankenversicherung): statutory health insurance, including your fund's additional contribution (Zusatzbeitrag)
• RV (Rentenversicherung): state pension insurance
• AV (Arbeitslosenversicherung): unemployment insurance
• PV (Pflegeversicherung): long-term care insurance; people aged 23 and over without children pay an extra surcharge, while parents of several children under 25 pay a reduced rate

From net pay (Netto) to the amount paid out

Gross pay minus taxes and social insurance gives your statutory net pay, or Nettoverdienst. That is often not the number you see in your bank account, because further items may follow.

Common deductions after net pay include the employee share of capital-forming benefits (vermögenswirksame Leistungen) that go into a savings contract, deductions for a company car or meals, advance payments you already received and wage garnishments. Occasionally there are additions too, such as travel expense reimbursements that are tax-free.

The final line, Auszahlungsbetrag or Überweisungsbetrag, is what your employer actually transfers. If you want to understand your gross-to-net salary, compare these three numbers: gross, net and payout.

How to check your payslip for mistakes

Payroll errors happen, and the most expensive ones repeat every month until someone notices. A quick monthly check takes a few minutes.

Keep your payslips in a safe place. You need them for your tax return, for loan or rental applications and to check your pension record years later. Many people keep them until retirement.

• Tax class, child allowances and church status match your real situation
• Hours, overtime and supplements match your own records
• Holiday and sick days are recorded correctly
• Your health insurance fund is the right one
• One-off payments such as bonuses appear in the month they were promised
• Year-to-date totals (often marked kumuliert or Jahreswerte) move in line with each month

Useful German payslip terms at a glance

The vocabulary is the hardest part for newcomers. These are the terms you are most likely to meet.

• Abrechnungszeitraum: pay period
• Grundgehalt or Grundlohn: base salary or wage
• Zuschläge: supplements, for example for nights or Sundays
• Einmalzahlung: one-off payment such as a bonus
• Steuerrechtliche Abzüge: tax deductions
• Sozialversicherungsrechtliche Abzüge: social insurance deductions
• Arbeitgeberanteil: employer's share (shown on some payslips for information)
• Gesetzliches Netto: statutory net pay

Frequently asked questions

Once you know how to read a payslip in Germany, the page stops being a wall of abbreviations and becomes a monthly check on your money. Start with your personal data, follow the path from gross to net to payout, and question anything that does not match your contract or your records. Payroll teams deal with corrections all the time, and the earlier you ask, the easier the fix.

How we research: Guides are written from established sources and checked for accuracy. They are general information, not professional advice.