Net salary is the only figure that matters for your everyday life. It's the money you can actually spend – on rent, groceries, your car, vacation and everything else. That's why you should base every financial decision on your net income, not your gross.
Why does net income vary so much? With the same gross salary of €3,500, a single employee in tax class I gets around €2,280 net, while a married sole earner in tax class III receives around €2,640 – a difference of €360 per month, or €4,320 per year! Your health insurance provider also makes a difference: the additional contribution varies between 0.5% and 2.5%, which can add up to €35 per month on a €3,500 gross salary.
Important to know: certain benefits such as parental allowance, sick pay and unemployment benefit are calculated based on your net income, but the underlying basis remains your gross salary. That's why it can pay off to switch tax class before parental leave – it can mean several thousand euros more in parental allowance. Our calculator helps you run through these scenarios.