Summary
In Germany, a payslip shows your gross earnings, special payments (bonuses, allowances), and then subtracts taxes and social contributions (health, pension, unemployment, nursing care). It also lists deductions like wage tax, church tax, and solidarity surcharge. Your net salary appears after all these deductions. It may include employer contributions or benefits (e.g. capital-forming payments). If something seems wrong, contact your payroll service or HR for clarification.
Legal Framework for payroll accounting
A pay slip or salary statement is the right of every employee. Every employer is therefore obliged to issue a monthly payslip. The legal basis of the payroll system has three pillars:
- GewO: The remuneration components are regulated in the so-called remuneration certificate regulation in Section 108 of the German law on trade, commerce and industry regulation.
- EStG: The law on income tax, naturally, sets out how income tax classes are determined.
- SGB: The social security code governs the statutory contributions for health, aged care, pension, and work and accident social insurance.
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What info must a payslip in Germany contain?
Section 108 (1) of the GewO sets out all the contents a payslip must contain. This includes general information on the employee as well as individual remuneration components (listed according to the order in the payroll):
The header of the payslip
- Name and address of employer
- Name, address and date of birth of the employee
- Insurance number, tax class and tax ID of the employee
- Start and, if applicable, end of employment
- Period of certification
The central part of the payslip
- Gross wage or salary
- Remuneration in kind or benefits in kind
- Capital-forming benefits
- Contribution to the company pension scheme, if applicable
- Tax allowances
- Church tax, if applicable
- Employee’s social security contributions
- Personal deductions
- Expense allowances
- Amount paid out
FAQ about German payslips
Quite a few employees need help deciphering their payslips and finding the information they need. So we’ve put together a guide on all the abbreviations here and the answers to some common queries below:
Where can I find my pension insurance number?
The pension insurance number 💬Rentenversicherungsnummer, or RV doesn’t appear on employee payslips, but on the social security notification letter they receive once a year. This number consists of twelve characters (one letter and eleven digits). The pension insurance number is often confused with the national social security number 💬Sozialversicherungsnummer / SV-Nummer. Most of the time, the RV number includes, among other things, the employee’s date of birth.
Where can I find my tax ID on the payslip?
The tax ID can be found in the centre of the header of the payslip. It consists of 11 digits and is consists of data such as first and last name, date of birth, place of residence and other personal information.
Where is my social security number?
The social security number is made up of numbers and letters and can be found in the top left-hand corner of the payslip in the box SV-Nummer. The is often confused with the pension insurance number as it also contains the date of birth and the first letter of the name at birth—but they are not the same!
Where are my leave days listed?
Employees can find their accounted leave days on their payslips in the main section directly under gross pay, above deductions.
When will I receive my annual notification?
The employer must prepare an annual notification once a year from each employee who has to pay compulsory insurance. This statement should ideally be completed by 31 December, but the hard deadline is 15 April of the following year.
Where on my payslip can I find travel expenses?
Travel costs include travel, accommodation, subsistence and incidental travel costs. Since 2008, all these travel expenses have been grouped as business-related out-of-town activities. In principle, different flat rates apply to the reimbursement of travel expenses, which is why they do not necessarily have to be indicated on the payslip.
How are wages or salaries calculated?
Each payslip is structured according to a scheme in which allowances and other payments are first added to the gross earnings. The gross amount is what is subject to tax and social security contributions. That is, income tax, church tax and social insurance contributions are deducted from this total. Then the employee’s contributions, advances, benefits in kind or other payments are deducted from the net remuneration. The final result is the amount paid to you. All the elements that lead to the calculation of your paid remuneration are set out below:
Breakdown: gross to net salary
+ Employer saving schemes
+ Supplements, e.g. overtime, night shift bonus
+ Other bonuses, sales commissions
+ Other remuneration, e.g. Christmas or holiday bonus
= Gross salary or wage subject to tax and social insurance contributions
– Wage tax
– Church tax, if applicable
– Solidarity surcharge, if applicable
– Health insurance
– Pension insurance
– Unemployment insurance
– Long-term care insurance
= Net salary or wage
– Employee saving schemes
– Advances )
– Benefits in kind
– Other deductions, e.g. payments on account, garnishments, etc.
= Amount to be paid out
The starting point for every payslip is the outsourced or in-house accountant. If something doesn’t make sense or there is a mistake, your employer’s payroll accountant should be the first point of contact.
Conclusion
Understanding your payslip lets you verify that deductions are correct and transparent. It helps you spot errors in tax classes, social contributions, or benefit entries. Keep all monthly payslips for your records and future tax use. Ask questions when abbreviations or items are unclear.
