You negotiated a salary of €1,000. You open your banking app… and receive €780. Did your boss steal from you?
No. You just met the German Social Security system.
Understanding your payslip (Gehaltsabrechnung) is vital to budgeting. Germany has high deductions, but they buy you high protection. Here is the line-by-line breakdown for a trainee holding jobs in Germany.
1. Brutto (Gross)
This is the top number. The €1,000 in your contract. You never see this money.
2. The Deductions (Abzüge)
These are automatically taken out before the money hits your account.
- Lohnsteuer (Income Tax):
- Good News: If you earn under ~€1,000/month (the “Basic Tax-Free Allowance”), you usually pay €0 tax!
- Tax Class: Ensure you are in Steuerklasse 1 (Single). If you see Steuerklasse 6, you are paying too much—fix it at the tax office!
- Krankenversicherung (Health Insurance): ~7.3%
- You pay half, employer pays half. This covers everything. Doctor visits, hospital stays, surgery. No deductible.
- Rentenversicherung (Pension): ~9.3%
- You are paying for your future retirement (and current retirees). This also counts towards your Permanent Residence requirements.
- Arbeitslosenversicherung (Unemployment): ~1.3%
- If you lose your job after 12 months, the state pays you ~60% of your salary.
- Pflegeversicherung (Care Insurance): ~1.7% – 2.3%
- For long-term care in old age. It costs slightly more if you don’t have children.
- Kirchensteuer (Church Tax):
- Optional: If you registered as Catholic or Protestant at the town hall, they take ~8-9% of your tax amount. If you are not religious, make sure you registered as “No Religion” (Konfessionslos) to save this money.
3. Netto (Net)
This is the bottom number. The money you can spend. For a trainee earning €1,000 Gross:
- Social Security: ~€200
- Tax: ~€0
- Net Pay: ~€800.
Summary
A 20% deduction is normal for trainees. It feels like a loss, but remember: You don’t have to save extra for health insurance or emergencies—it’s already paid.
References
- Brutto-Netto-Rechner: Official Calculator
- TK (Health Insurance): Social Security Contributions 2025