S as in Salary
How is my salary paid out?
Salary is the compensation for the work of the employee. Usually, the salary is due at the end of the month and is paid subsequently at the end of the month by transfer to a bank account.
What is deducted from my salary?
The gross salary is accounted for, income tax and social security contributions are deducted and directly transferred by the employer to the tax authorities as well as the pension insurance, health insurance, unemployment insurance and long-term care insurance to the social insurance institutions. The amount paid to the tax authorities and the social insurance institutions can be seen on the pay slip.
How high are the social security contributions?
In 2022, the employee’s contributions to social insurance will amount to
- 7.3% in the statutory health insurance (plus an additional contribution, which can vary depending on the health insurance, on average 1.3%)
- 1.2% in the unemployment insurance
- 9.3% in the statutory pension insurance and
- 1.525% in the statutory nursing care insurance (1.775%for childless employees).
Contributions are paid on a parity basis, i.e. the employer pays an equally high employer’s contribution for each employee. The employer alone pays the full contribution to the statutory accident insurance.
Please note: This is a very general overview on the subject of salary under german labor law. If you need help in your particular case, please do not hestitate to contact me or book your appointment. I’m happy to help.