How do you calculate the actual wages that are paid at the end of the month? In this article, we read about How to calculate net income?
Here you can find out everything you need to know about wage calculation and ancillary wage costs. In this way, you can reliably and quickly determine your net wage in the future without experiencing an unpleasant surprise on the first monthly statement.
A wage calculation is indispensable because the gross wage does not represent the sum of the salary paid at the end of the month.
Two items are deducted from the gross wage: on the one hand, there are taxes and, on the other hand, social security contributions.
Calculating wages without tools is very complicated. Therefore, a wage calculator that can determine the net salary is the right decision for the calculation. If you ever want to estimate how high the wage will be rough, you can use a common rule of thumb: The net salary is between 60 and 70 per cent of the gross salary. With low incomes, it is more like 70 per cent, with high gains more like 60 per cent.
Non-wage costs
The employer also bears costs if he employs an employee. Non-wage costs are all money that an employer has to pay in addition to the regular salary. These make up a significant part of the cost of employing staff.
There are two different types:
- statutory additional costs
- operational costs
The additional statutory costs for wages include health insurance and social security contributions. The wage tax and the solidarity surcharge are not added. These funds are also paid by the employer but are borne by the employee.
The additional operational costs incurred in addition to the regular salary can include different points. For example, these;
- wealthy benefits
- Christmas bonus
- Vacation pay
However, in contrast to the statutory ancillary costs, the employer can decide for himself whether or not the employer would like to bear the additional operating expenses.
Contributions for company old-age and health insurance to calculate net income, which the employer pays, must also include.
The actual amount of additional costs depends on the salary and is therefore difficult to generalize. However, most of the time, they make up more than 21 per cent of the gross salary.
Forty-six per cent of the total ancillary costs are due to legal obligations. Fifty-four per cent of the ancillary costs are therefore operationally related.
The most important facts about wage calculation
- The wage calculation vital in order to find out how much net wages paid
- The deductions that deduct from gross wages can generally divide into two categories: taxes and social security contributions.
- How high the taxes are ultimately depending on the tax class and the tax exemptions
- The net wage is roughly 60 – 70% of the gross salary
- The employer also has to bear the costs of employing an employee (non-wage costs)
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