Your contract says one number and your bank account shows another, usually about a third lower. The gap is explained on the Gehaltsabrechnung, a page full of abbreviations that arrives every month by post or in an app.
Once you know a dozen words, the page reads top to bottom: what you earned, what tax was taken, what went to social security, and what's left.
Brutto and Netto: The Two Numbers That Matter
payslip
die Gehaltsabrechnung
gross salary
das Bruttogehalt
net salary
das Nettogehalt
amount paid out
der Auszahlungsbetrag
deductions
die Abzüge
basic salary
das Grundgehalt
hourly wage
der Stundenlohn
overtime
die Überstunden
bonus
die Prämie
holiday bonus
das Urlaubsgeld
Christmas bonus
das Weihnachtsgeld
Practice these words
die Gehaltsabrechnung
Brutto or netto? When Germans talk about a salary, they mean brutto, per year: 60.000 brutto im Jahr. Your own monthly budget runs on netto, so ask which one someone means.
Good to know: Netto and Auszahlungsbetrag are often different. Your share of a job ticket or a company savings plan can be taken off after the net figure, so the amount paid out is lower still.
Tax Lines
income tax
die Lohnsteuer
solidarity surcharge
der Solidaritätszuschlag
church tax
die Kirchensteuer
tax class
die Steuerklasse
child tax allowance
der Kinderfreibetrag
tax ID
die Steuer-ID
Practice these words
die Lohnsteuer
Watch out: the Kirchensteuer line only appears if you're registered as a member of a church that collects it. If you see it and you aren't a member, ask payroll first. If your tax data is wrong, correct it at the Bürgeramt.
Most people no longer pay the Solidaritätszuschlag. Since 2021 it only applies to high incomes, and the line shows 0.
Social Security Contributions
About a fifth of your gross salary goes to social insurance. Your employer pays roughly the same amount again on top, which doesn't appear in your net figure.
| On the payslip | What it is | Your share in 2026 |
|---|---|---|
RV | Rentenversicherung, pension insurance | 9.3 % |
AV | Arbeitslosenversicherung, unemployment insurance | 1.3 % |
KV | Krankenversicherung, health insurance | 7.3 % plus half your insurer's extra contribution |
PV | Pflegeversicherung, long-term care insurance | 1.8 %; 2.4 % if you're 23 or older and childless; less with two or more children under 25; more in Saxony |
What you get: RV builds your German pension, AV pays out if you lose your job, KV is your health cover, and PV pays for care in old age. Rates can change in January, so check them each year.
The words behind KV and PV are in the health insurance lesson.
The Tax Classes
Your Steuerklasse decides how much Lohnsteuer is taken each month. It doesn't change the tax you owe for the year, only how it's spread.
| Class | Who |
|---|---|
I | single or divorced |
II | single parent living alone with a child |
III | married, the higher earner, when the partner is in class V |
IV | married, both earning similar amounts |
V | married, the lower earner, when the partner is in class III |
VI | a second job |
Watch out: if you can't give your employer your Steuer-ID and date of birth, you're taxed in class VI, the most expensive. The money usually comes back on a later payslip, but the first one can be a shock. Give your employer your Steuer-ID on day one.
Other Words on the Payslip
personnel number
die Personalnummer
social security number
die Sozialversicherungsnummer
pay period
der Abrechnungszeitraum
tax-free
steuerfrei
benefit in kind
der Sachbezug
taxable benefit
der geldwerte Vorteil
employer's share
der Arbeitgeberanteil
employee's share
der Arbeitnehmeranteil
Practice these words
die Personalnummer
Company car? A company car you can also use privately, or a similar perk, appears as geldwerter Vorteil. You don't receive that money, but you pay tax on it, which is why the line looks strange.
Questions for the Payroll Office
I have a question about my payslip.
Ich habe eine Frage zu meiner Gehaltsabrechnung.
My tax class is wrong.
Meine Steuerklasse ist falsch.
My overtime is missing.
Meine Überstunden fehlen.
Why is my net salary lower this month?
Warum ist mein Netto diesen Monat niedriger?
Could you send me the payslip again?
Könnten Sie mir die Abrechnung noch einmal schicken?
Practice these words
Ich habe eine Frage zu meiner Gehaltsabrechnung.
The payroll team is called die Lohnbuchhaltung or die Entgeltabrechnung. In smaller companies the questions go to die Personalabteilung, the HR department, or payroll is done by the company's tax adviser.
What to Check on Your First Payslip
- Your name is spelled exactly as on your registration, and your Steuer-ID is correct.
- The Steuerklasse is the one you expect: I if you're single.
- Kirchensteuer appears only if you belong to a church that collects it.
- The Krankenkasse named is the one you chose.
- Overtime and bonuses agreed for that month are listed.
Keep every payslip. You'll need them for renting a flat, for a loan, and to check your pension record later.