Gross salary (Bruttolohn / Bruttogehalt) refers to the total remuneration stipulated in the employment contract, before deductions for taxes and social security contributions. It is the starting point for calculating net salary.
Bruttolohn vs. Bruttogehalt
Both terms are often used interchangeably. Strictly, Lohn refers to hourly pay (e.g. craftsman), Gehalt to a fixed monthly salary (office employee).
From gross to net: the deductions
- Wage tax (Lohnsteuer)
- Solidarity surcharge (Solidaritätszuschlag)
- Church tax (Kirchensteuer, if applicable)
- Social security contributions: health, pension, long-term care, unemployment
At 3,500 € gross (tax class I, statutory health insurance), net is approx. 2,300–2,350 €.
Sources: § 38 EStG, SGB IV.