Difference Between a Netto - Brutto Salary

By: Together Abroad 04-07-2016 9:45 AM
Categories: * Salary,



Brutto(gross) salary is best defined as the sum of salary before the deduction of tax and insurance(s). Netto(net) salary is the result of initial pay including tax and other sorts of deductions made. These deductions depend on local/national legislation where employees are required to pay certain amounts of tax to the government.

This could be an example of what the salary slip would look like:

Earnings of January 2022: 2,000EUR
Bonus: + 150EUR
= 2,150EUR
(This would be considered the brutto salary)

Deductions:
Payroll tax with discount: 236,33
Special payroll rate – 5,62
11,11% Pension rate – 158,28
8,99 % Extra pension add on – 0,00
0,414 % Insurance – 11,18
0,285 % Insurance – 5,65
0,11 % Insurance – 2,18
= 419,24

Subtotal (2,150 – 419,24) = 1730.76

Traveling costs (home to workplace): 2 x 15 km per day+ 123,50
Representing the company cost: + 25

Total netto earnings: 1,879,26 EUR

The aspects of deduction will always depend on the terms and agreements the employee makes with the employer. Most companiesin the Netherlands, for example, would follow the guidelines of the CAO (CollectieveArbeidsovereenkomst), which is an agreement between the government body, the employees union and the employers union regarding working conditions.
In conclusion, brutto salary is the amount earned without deductions. After the deductions have been made, the salary is then considered netto.

Calculate your Dutch net salary
Because the net salary depends on various factors, such as the number of hours you work, your age, allowances, etc., we recommend that you use an online salary calculator

Brodie Bavidge for Together Abroad










 

Reactions

By:Pedro
On:29-10-2018 1:32 AM
Thanks very much. It was very helpful.
This article is restricted. You have to be logged in to be able to add further reactions.

Our Career programs assist you to Get hired

For an expat moving to the Netherlands, getting the right direction is very important. It's important that one knows which steps and direction to take. Linda is an exceptionally talent counselor, her advice has helped me land a job within a week of coming to the Netherlands. I am grateful for her mentoring and look forward to a great working relationship in the future.

Dr. Hrishiraj S | Clinical Research & Affairs Manager

 Linda provided expert advice on personal branding including developing a top-notch, market-aware CV, highly tailored job applications, and approach strategies with potential employers in the Netherlands. Furthermore, I found Linda to be highly knowledgeable in key related fields such as recruitment strategy, immigration law, contracts, labor agreements, and (un)employment benefits. I would recommend her to anyone who needs professional help with transitioning to a new career.

A. Aboufirass | Structural Engeer

Linda is a big mind. She thinks about things that the rest normally overlook. The insight she has about the dutch job market can only be achieved through years of experience and persistence.

Her business savvy is complemented by her mastery of understanding the client's needs and requirements. For my career I could say, she was the “Mary Poppins”, who guided me through thick and thin and helped me to land a career in the Netherlands

S. Bhattacharjee | FP&A Manager