“From €15.33 per hour gross” – and how much is left in your account at the end? That depends on several factors. Here we explain in simple terms what gross and net mean, what deductions there are and what to look out for in the first months.
As of October 2026. This article is general information and not tax or legal advice. The exact amounts depend on your personal situation.
Gross and net
- Gross (brutto) is your pay before any deductions. It is stated in the employment contract and in the job ad.
- Net (netto) is the amount that goes into your account after taxes and social insurance contributions.
The employer withholds taxes and contributions and pays them on. You do not have to transfer anything yourself.
Taxes on your pay
- Income tax (Lohnsteuer): the most important tax. It depends on your income and tax class. A basic allowance remains tax-free.
- Solidarity surcharge (Solidaritätszuschlag): today only charged on high incomes. Most employees in warehouses and production do not pay it.
- Church tax (Kirchensteuer): only for members of a church that collects tax, for example the Catholic or Protestant church.
Social insurance
The employee’s share of social insurance is also deducted from your gross pay. The employer pays the other part on top:
- health insurance – treatment and sickness benefit,
- pension insurance – your pension later,
- unemployment insurance – unemployment benefit if you lose your job,
- long-term care insurance – slightly higher for childless people aged 23 and over.
Employees and employers share the contributions roughly half and half. The rates change, and each health insurance fund has its own additional contribution. Current figures are published by the Federal Ministry of Health and the German Pension Insurance (Deutsche Rentenversicherung).
Tax classes I to VI
- I: single, divorced or widowed people.
- II: single parents who live with the child and no other adult.
- III: married people, usually the partner with the higher income – lower deductions.
- IV: married people with similar incomes (IV/IV is the standard).
- V: the counterpart to III, higher deductions.
- VI: a second or any further job, or missing tax data.
If your spouse lives in another EU country, tax class III is possible under certain conditions if you apply to the tax office (Finanzamt).
Your first pay: why the tax ID matters
The employer gets your tax data electronically (ELStAM). For this, they need your tax ID (Steuer-ID), which comes by post after your address registration – more under Moving and registration.
- If you do not give your tax ID through your own fault, pay is calculated under tax class VI.
- If it is missing through no fault of your own, the employer may use your expected tax class for up to three months. If the ID still does not come, pay is recalculated under tax class VI for that period.
So pass on your tax ID straight away. Tax paid too much is not lost – you get it back through a tax return.
Reading your payslip – step by step
- Personal data: name, tax ID, tax class, child allowances, religion.
- Hours: compare them with your own records.
- Gross: hours times hourly wage plus any supplements.
- Taxes: income tax, solidarity surcharge (usually 0), church tax.
- Social insurance contributions: KV (health), RV (pension), AV (unemployment), PV (long-term care).
- Payout amount (Auszahlungsbetrag): what arrives in your account, possibly minus advances.
Keep all your payslips – for your tax return, looking for a flat and your pension.
Kindergeld
Child benefit (Kindergeld) is paid by the Family Benefits Office (Familienkasse), not by the employer, and you have to apply for it separately. EU citizens who work in Germany can, under the EU coordination rules, also get it for children in another EU country. The Family Benefits Office gives the current amounts.
Tax return
In tax class I, a tax return is usually voluntary, but it is often worth it – for example if you started work during the year, were taxed under class VI or have travel and moving costs. A voluntary return is possible up to four years later. With III/V, a tax return is usually compulsory.
Common mistakes in the first months
- Not passing on your tax ID: then you pay more tax than necessary at first.
- Not checking your payslip: mistakes in hours or tax class should be sorted out straight away.
- Comparing net pay with friends: with the same gross pay, net pay can be different because of tax class, health insurance fund and family.
- No tax return: especially in your first year of work, you often get money back.
Your pay with us
We pay from €15.33 per hour gross, and as a forklift driver (m/f/d) from €16.08 per hour gross – with an employment contract, full social insurance, paid holidays and sick pay. See all jobs at a glance.
Questions about pay? Ask in the chat on the website or fill in the application form.
