Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Derived calculators
Both build on the same calculation as the gross-to-net calculator, the one verified against the ministry's own tool. To get from a target net figure to gross pay, use the gross-to-net calculator directly.
Total cost to the employer
4.930,00 €
One euro of gross pay costs 1,23 euros.
| Gross pay | 4.000,00 € | |
|---|---|---|
| Employer's social security share | 846,00 € | § 249 SGB V, § 168 SGB VI and others |
| Levy U1 (continued pay during sickness) | 64,00 € | 1,6 % · § 7 AAG, rate under § 9 (1) no. 1 AAG |
| Levy U2 (maternity) | 14,00 € | 0,35 % · § 7 AAG, rate under § 9 (1) no. 1 AAG |
| Insolvency benefit levy | 6,00 € | 0,15 % · § 358 SGB III, rate under § 360 SGB III |
| Total cost | 4.930,00 € |
- The rates for levies U1 and U2 are set by the statutes of your health insurer (§ 9 (1) no. 1 AAG) — they appear in no statute and therefore have to be entered.
- The U1 reimbursement rate is 80 % by statute (§ 1 (1) AAG); the insurer's statutes may reduce it to as little as 40 % (§ 9 (2) no. 1 AAG). It does not affect the cost, only how much you get back when an employee is ill.
Terms used on this page
Each term has its own page with a plain-language explanation, the technical detail and a worked example.
- Choice of tax class (Steuerklassenwahl) — It does not change the tax owed for the year, only the monthly amount withheld. Full article →
- Income splitting for spouses (Splittingverfahren) — Jointly assessed spouses are taxed on half of their combined income — and pay twice the tax on it.
- Levies U1 and U2 (Umlagen) — Contributions borne by the employer alone — for continued pay during sickness and for maternity.
- Net to gross — The inverse of the net calculation — which gross salary produces a desired net figure?
- Tax class (Steuerklasse) — Assigns the wage tax deduction to your family situation and determines which allowances are already taken into account each month. Full article →
How the figures are calculated
The levies appear in no statute
The employer's social security shares follow fixed rates. The levies U1 and U2 do not: their size is set by the statutes of your health insurer (§ 9 (1) no. 1 AAG). That is why they are input fields here and not stored values — an estimated rate would look just like a substantiated one. Only employers with at most 30 employees take part in the U1 scheme at all.
Employer cost is more than the gross salary
On top of the gross figure come the employer's social security shares, the levies U1 and U2 and the insolvency benefit levy. The calculator states the full cost of a post — the figure that counts on the other side of the table in a salary negotiation.
The choice of tax class decides liquidity, not the annual tax
III/V, IV/IV and IV with a factor produce different monthly net pay but the same tax at the end of the year. Choose III/V and you have more each month and more often owe money; the factor method under § 39f EStG distributes the burden in proportion to who causes it.
Example: 4.000 € gross per month, tax class 1
| Gross pay per month | 4.000,00 € |
|---|---|
| Employer's social security share | 830,00 € |
| Total cost to the employer | 4.930,00 € |
A post costs roughly 23 % more than the agreed gross figure. That is the number sitting on the other side of the table in a salary negotiation.
What this calculator does not cover
Pretending to be complete is the costliest mistake a financial calculator can make. These points are deliberately absent — either because they need details this page does not ask for, or because they cannot be substantiated in general terms:
- The same limits as the gross-to-net calculator: individual allowances under § 39a EStG, church tax capping, the individual private health insurance premium.
- The factor in the factor method is formed by the tax office and supplied electronically; here it is calculated from the salaries entered, which can differ where there is other income.
Related calculators
- Gross to net — the reverse calculation from a target net figure lives there too
- Hourly rate required — the same question for the self-employed: what has to come in?
- Income tax for the year — what the choice of tax class does NOT change at year end