Are you wondering how the burden of PIT and ZUS equivalents will affect your salary in another country? It’s good to know how to calculate earnings and know the net amount – the one that will finally be on your account. What is the difference between gross and net? From now on you will know how much money you will bring home. See for yourself!
How to calculate earnings? Differences between gross and net
The gross amount is the total remuneration, which is reduced by income tax and social security contributions – ZUS (or its equivalent abroad). What the employee earns clear is called the net remuneration. The amount of deductions for health and pension contributions is usually fixed, however, the tax may vary depending on:
- tax threshold (the more you earn, the higher tax you pay)
- family situation (families with children can count on many tax credits)
Salary tax in various European countries. Differences between gross and net
Here are the percentages of your earnings that the state will take away:
|
Country |
% deducted from the amount earned | |
|
For the first tax threshold (lowest earnings) |
For the highest tax threshold (highest earnings) | |
| Germany | 14% | 45% |
| Netherlands | 8,9%* | 52% |
| Belgium | 25% | 50% |
| Sweden | 32% | 57% |
| France | 14% | 49% |
| Great Britain | 20% | 45% |
| Ireland | 20% | 40% |
| Denmark | 39% | 52% |
| Norway | 27% | 48% |
*Such a low tax applies to persons on the age bracket
Earnings of most people fluctuate around the national averages and thus reach average tax thresholds. On average, the state takes (not including tax credits other than family):
| Country |
average % deducted from the amount earned | |
|
For a single person with average earnings |
For a family with average earnings | |
| Germany | 39% | 31% |
| Netherland | 31% | 31% |
| Belgium | 40% | 27% |
| Sweden | 23% | 23% |
| France | 30% | 22% |
| Great Britain | 20% | 20% |
| Ireland | 20% | 11% |
| Denmark | 35% | 30% |
| Norway | 28% | 27% |
source: PwC Polska
Deductions for social and health contributions
In addition to income tax, advances on social and health contributions are deducted from gross pay. In most countries, these deductions are paid by an employer. Sometimes, however, an employee must take care of his or her own social security. In some countries, deduction amounts increase with earnings.
| Country |
% of deductions for social and health contributions |
| Germany | 20,75% |
| Netherlands | 27,65% |
| Belgium | 13,70% |
| Sweden | 7% |
| France | 20% lub 23% |
| Great Britain | 0% lub 2% lub 12% |
| Ireland | 4% |
| Denmark | 5% |
| Norway | 7,80% |
source: PwC Polska
Differences between exemplary gross and net rates
To show you the actual amounts you will earn, we have created an approximate list for two popular rates: EUR 9.69 and EUR 12. The rates are calculated on the basis of averaged tax deductions not including non-family tax credits.
| Country | 9,69 EUR gross | 12 EUR gross | ||
|
NET for single people |
NET for families |
NET for single people |
NET for families | |
| Germany | 5,91 EUR | 6,67 EUR | 7,32 EUR | 8,28 EUR |
| Netherlands | 6,67 EUR | 6,67 EUR | 8,28 EUR | 8,28 EUR |
| Belgium | 5,81 EUR | 7 EUR | 7,20 EUR | 8,76 EUR |
| Sweden | 7,46 EUR | 7,46 EUR | 9,24 EUR | 9,24 EUR |
| France | 6,68 EUR | 7,55 EUR | 8,40 EUR | 9,36 EUR |
| Great Britain | 7,75 EUR | 7,75 EUR | 9,60 EUR | 9,60 EUR |
| Ireland | 7,75 EUR | 8,62 EUR | 9,60 EUR | 10,68 EUR |
| Denmark | 6,29 EUR | 6,78 EUR | 7,80 EUR | 8,40 EUR |
| Norway | 6,97 EUR | 7 EUR | 8,64 EUR | 8,76 EUR |
If your hour rate is different, you will have to make a few simple calculations to know your future earnings. Find out the exact rate at your place of employment (the gross amount will certainly not be hidden) and subtract the percentage deducted from the amount you earn, multiplied by the gross rate previously mentioned. You’ll find the right percentage in the first table. If you still do not know how to calculate your earnings, use the formula below:
In order to calculate net earnings at a different gross rate, use the formula:
gross rate – (% deducted from the amount earned in a given country × gross rate) = net rate
E.g. 15 EUR gross – (0.31 × 15 EUR gross) = 10.35 EUR net
Remember that employers sometimes also deduct the cost of accommodation or daily transport to work. When signing the contract, check what amount you will get into your account!
