The “gross” salary stated in the employment contract is not the money the employee finds in his or her account. Gross means the total before taxes and social security contributions are deducted. It is also stated in job advertisements. What arrives in the account is the “net” salary, i.e., the amount after all deductions. In Germany, income tax, church tax, and social contributions (health insurance, pension insurance, long-term care insurance, and unemployment insurance) are withheld from employees. Those who earn very well also have to pay a solidarity contribution. But what do these terms mean – and how are the… Read More
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