Gross salary is the most important figure in salary negotiations – and at the same time the one that can mislead you the most. Because there's a gap of 30 to 50 percent between what's written in your contract and what you can actually spend. With a gross salary of €4,000, that means: you only see €2,400 to €2,800 in your account.
Why does this matter to you? When you get a job offer or negotiate a raise, you always need to think in net terms. A raise of €500 gross only brings you around €250-300 more per month in real terms. Conversely: if you need a certain amount to live on, you need to negotiate correspondingly higher. Our calculator shows you exactly what gross salary you need to reach your desired net income.
Practical tip: always negotiate in gross, but think in net. And don't forget: bonus payments like a Christmas bonus, holiday pay and other bonuses are also taxed – often even more heavily, because they're paid out within a single month. Out of a €3,000 Christmas bonus, you might only keep €1,600.