How to read your first Lohnabrechnung — every line explained
You got your first German payslip and half the lines are acronyms. Here's what every deduction means, what counts toward tax, and what to check before filing.
The 9 lines on your Lohnabrechnung that determine your take-home
Bruttoentgelt to Nettoentgelt — the 35–45% gap is where every German deduction lives. Here's what each line means, what to check, and what triggers a red flag.
typical gross-to-net gap on a €5,000 Blue Card salary
~37%
Your €5,000 gross lands as €3,100–€3,300 net. Taxes + social insurance eat 35–45% depending on your class, Kasse, and Bundesland.
The 3 blocks every Lohnabrechnung has
Top
Identity block
Who + Steuerklasse + Kasse
Mid
Gross pay (Brutto)
Salary + supplements + benefits
Bottom
Deductions → Net
Taxes + Sozialversicherung
Top block — who + what
- ArbeitnehmerYou
- SV-Nummer12 chars
- Steuer-ID11 digits
- SteuerklasseI / II / III / IV / V / VI
- Kindertax-allowed
- Religion— if opted out
If Religion isn't "—", you're paying Kirchensteuer (8–9%). See our tax guide for the opt-out (Kirchenaustritt) procedure.
Gross pay (Bruttoentgelt)
| Provider | What it means | Taxable? |
|---|---|---|
Gehalt / Grundgehalt | Your base salary for the month | Yes |
Zuschläge | Overtime, weekend, holiday supplements | Partially tax-free |
Geldwerter Vorteil Germany taxes non-cash benefits as cash — often a surprise. | Non-cash benefits (company car, meal vouchers >€50/mo, subsidised gym) | Yes, full |
Bruttoentgelt gesamt Best | Gross total — everything below is a deduction | Reference line |
- What it means
- Your base salary for the month
- Taxable?
- Yes
- What it means
- Overtime, weekend, holiday supplements
- Taxable?
- Partially tax-free
Germany taxes non-cash benefits as cash — often a surprise.
- What it means
- Non-cash benefits (company car, meal vouchers >€50/mo, subsidised gym)
- Taxable?
- Yes, full
- What it means
- Gross total — everything below is a deduction
- Taxable?
- Reference line
Tax deductions (Steuern)
| Provider | Rate | Only if... |
|---|---|---|
Lohnsteuer | Progressive 14–42% | Always; annual return reconciles |
Solidaritätszuschlag | 5.5% of Lohnsteuer | Only if annual income tax > ~€19,950 (single) |
Kirchensteuer Tick 'konfessionslos' at Anmeldung to skip forever. | 8% (BY/BW) or 9% elsewhere | Only if registered as church member at Anmeldung |
- Rate
- Progressive 14–42%
- Only if...
- Always; annual return reconciles
- Rate
- 5.5% of Lohnsteuer
- Only if...
- Only if annual income tax > ~€19,950 (single)
Tick 'konfessionslos' at Anmeldung to skip forever.
- Rate
- 8% (BY/BW) or 9% elsewhere
- Only if...
- Only if registered as church member at Anmeldung
Social security deductions (Sozialversicherung)
| Provider | Employee share | Capped at BBG |
|---|---|---|
Krankenversicherung (KV) Best Pick BKK firmus to save €28/mo vs Barmer on the same coverage. | 7.3% + Zusatzbeitrag (2.18–3.29%) | €5,812.50/mo |
Pflegeversicherung (PV) | 1.7–2.3% (higher without children) | €5,812.50/mo |
Rentenversicherung (RV) | 9.3% | €7,550/mo (West) / €7,450 (East) |
Arbeitslosenversicherung (AV) | 1.3% | €7,550/mo |
Pick BKK firmus to save €28/mo vs Barmer on the same coverage.
- Employee share
- 7.3% + Zusatzbeitrag (2.18–3.29%)
- Capped at BBG
- €5,812.50/mo
- Employee share
- 1.7–2.3% (higher without children)
- Capped at BBG
- €5,812.50/mo
- Employee share
- 9.3%
- Capped at BBG
- €7,550/mo (West) / €7,450 (East)
- Employee share
- 1.3%
- Capped at BBG
- €7,550/mo
Your half: ~20% of gross. Capped above each BBG.
The bottom line (Nettoentgelt)
€2,500–2,700
€4,000 gross → net
Steuerklasse I, no church tax
€3,100–3,300
€5,000 gross → net
Steuerklasse I, no church tax
What to check every month
Do this check
- Gross matches your contract (bonus timing may vary)
- Steuerklasse correct (switched to IV after marriage?)
- Krankenkasse updated (new Zusatzbeitrag if you switched)
- Brutto-netto-rechner.info estimate matches within €10–20
Red-flag this
- Gross off by >€20 vs contract → HR immediately
- Geldwerter Vorteil appeared unexpectedly → ask what benefit was added
- Social security radically >20% → BBG reset or Zusatzbeitrag bump
- Steuerklasse II or III but you're single → file correction
Common confusions
Why is KV so high?
Germany runs a single-payer-style system; the employer covers half the premium, but the combined 15% is steep vs home-country private coverage. The trade-off is universal access + Krankengeld + family co-insurance.
What's geldwerter Vorteil?
Literally "monetary advantage" — non-cash benefits Germany taxes as cash. Company car, subsidised gym, meal vouchers above €50/mo all count.
Why is my net so low?
Combined tax + SV is 35–45% of gross for most Blue Card salaries. This is why the gross-to-net gap feels huge compared to India/Pakistan/USA salaries.
What's the Lohnsteuerbescheinigung?
End-of-year summary of all 12 Lohnabrechnungen — you need it to file your tax return. HR sends it in January.
Source: §38 EStG (Lohnsteuerabzug), §23 SGB IV (BBG 2026), KBV Zusatzbeitrag publications.
Last updated: 2026-04-23