Net Pay (Nettobezug)

Definition

The net pay (Nettobezug) is what remains after employee social insurance and income tax are withheld from the gross, and is the amount actually paid out. Tax credits such as the Familienbonus raise the net because they reduce income tax directly. Since the 13th and 14th salary are taxed at preferential rates, the net share over the full year is usually higher than in a single regular month.

From gross to net

See also

• Bruttobezug, the starting figure before any deductions.
• Lohnsteuer, the tax portion withheld by the employer.
• Familienbonus Plus, raises the net directly via the tax.
• Steuerkeil, the gap between employer cost and net.