Just received your first payslip in Germany and feeling confused by what all the letters and numbers mean? Our guide to German payslips helps you decode it all.
Understanding your German payslip
Employees in Germany will usually receive a monthly payslip (Gehaltsabrechnung, Lohnabrechnung or Verdienstabrechnung) from their employer, detailing their salary, social security contributions and taxation. To anyone who is not familiar with them, these breakdowns can be difficult to understand.
Payslip top section: Personal information
The personal information section defines various parameters that are used for tax and social security contribution calculations:
- Geburtsdatum - Date of birth
- Arbeitnehmer Nr. - Employee number
- St. Tg. (Steuertage) - Tax days (i.e., the relevant time period. For a full month it is usually 30)
- StKl. (Steuerklasse) - Tax class (see our Annual income tax return page for more information on tax classes)
- Ki.Frbtr. (Kinderfreibeträge) or ZKF (Zahl der Kinderfreibeträge) - Number of tax exemptions for children (1 per child)
- Rel. (Religion) or Konfession - Religion (RK = Roman Catholic; EV = Protestant; -- = No religion)
- Steuerfr. Bezug (Steuerfreibezug) or Freibetrag - Tax-free allowance
- Eintrittsdatum - Date of hire
- Sv. Tg. (Sozialverischerungstage) - Social security days (i.e., the relevant time period. For a full month it is usually 30)
- SV Schlüssel (KV/RV/AV/PV) - Social security codes, indicating your level of contribution (1 = full contribution)
- Lohnsteueridentifikationsnummer (IdNr.) or Steuer-ID - Tax ID
- Versicherungsnummer or SV-Nummer (Sozialversicherungsnummer) - Social security ID
- KK (Krankenkasse) - Sickness fund (i.e. the company responsible for your health insurance)
Payslip middle section: Salary breakdown & Deductions (Abrechnung)
You will also be given a detailed breakdown of your base salary, benefits, bonuses, taxes and insurance contributions. Detailed information on these various deductions can be found on our Income tax and Social security contributions pages:
- Bezeichnung - Description
- Gehalt - Monthly base salary
- Geldwerter Vorteil or Sachbezug - Benefits in kind
- E. (Einmalbezug) - Lump-sum payment (e.g. Christmas or holiday bonus)
- Urlaubsgeld - Holiday pay
- GB. (Gesamtbrutto) or St.Btto (Steuer-Brutto) - Total gross salary (taxable amount)
- LSt. (Lohnsteuer) - Income tax
- KiSt. (Kirchensteuer) - Church tax
- Solidarität Zuschlag - Solidarity surcharge
- SV (Sozialversicherung) - Social security
- KV (Krankenversicherung) Beitrag - Contribution to statutory health insurance
- PV (Pflegeversicherung) Beitrag - Contribution to long-term care insurance
- RV (Rentenversicherung) Beitrag - Contribution to pension insurance
- AV (Arbeitlosenverischerung) Beitrag - Contribution to unemployment insurance
- Zusatzbeitrag - Additional contribution
- Nettoverdienst or Auszahlung - Net salary paid
Payslip bottom section: Additional information
The bottom section of your payslip will usually provide a summary of your monthly and yearly totals, insurance contribution rates, and your employer’s contributions. You might see some of these terms:
- Verdienstbescheinigung - Statement of earnings
- Monatswerte or Monatssumme - Monthly values
- Jahreswerte or Jahressumme - Annual values
- KV/PV/RV/AV Beitrag-AG or AG-Anteil - Employer contribution to health/long-term care/pension/unemployment insurance
Annual wage tax certificate (Lohnsteuerbescheinigung)
Each year, you will also receive an annual wage tax certificate (Lohnsteuerbescheinigung) from your employer. This will show you at a glance all the information you need about your gross and net salary, your tax deductions, and your social security contributions for the whole year. You will need this information to fill out your annual tax return.