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