How to read a German payslip (Lohnabrechnung) line by line
Translated from the Arabic original. Read in Arabic
Every month your employer gives you a payslip (Lohnabrechnung or Gehaltsabrechnung) full of abbreviations. Most people only look at the last figure, but understanding the payslip helps you spot mistakes, and you need it when applying for residence, citizenship or a loan. This guide explains the items in the order they usually appear.
The basic details at the top
At the top you will find your name, tax ID (Steuer-ID), social insurance number (Sozialversicherungsnummer), tax class (Steuerklasse), number of child allowances (Kinderfreibeträge), health insurance fund (Krankenkasse) and your church tax status. Check these first: a wrong tax class or wrong church registration means a wrong deduction every month.
Gross pay (Brutto)
This includes your basic salary and any extras: overtime, night or holiday supplements, bonuses, holiday pay or a thirteenth-month salary if you get one. Some allowances are exempt from tax or social insurance within legal limits, which is why your payslip may show a taxable gross (Steuerbrutto) and a social insurance gross (SV-Brutto) that differ from the total.
Tax deductions
Wage tax (Lohnsteuer, LSt) is usually the largest item and depends on your pay and tax class. The solidarity surcharge (Solidaritätszuschlag, SolZ) is no longer paid by most people on average incomes, so it may show as zero. Church tax (Kirchensteuer, KiSt) is only deducted if you are registered as a member of a church that levies it. If you see church tax and are not a member, contact the citizens’ office and the tax office immediately, because the data comes from your address registration.
Social insurance
Four items are shared roughly equally between you and your employer, and your payslip shows only your share: pension insurance (RV), unemployment insurance (AV), health insurance (KV) with your fund’s additional contribution, and long-term care insurance (PV), whose rate is slightly higher for people over 23 without children.
Net pay and the amount paid out
Net pay (Netto) is gross minus taxes and social insurance. But the amount that reaches your account (Auszahlungsbetrag) can differ because of items deducted after net pay, such as a public transport ticket your employer subsidises, repayment of an advance, your contribution to a company pension scheme, or a wage garnishment.
How to check your payslip is right
Enter your gross pay, tax class, federal state and your fund’s additional contribution in a net pay calculator and compare the result with your payslip. A small difference is normal because of rounding or special allowances; ask the HR department (Personalabteilung) about a large one in writing. Keep all your payslips: they are needed for residence, citizenship and tax return procedures.
This article is general information, not legal or tax advice. Laws change, so check the official sources below or the competent authority for your situation. Found a mistake? Tell us.