Gross vs net salary – what is the difference?
Gross salary is the amount agreed in the employment contract before taxes; net salary is what the employee actually receives. The difference is made up of the employee taxes.
What is gross salary?
Gross salary is the agreed pay before taxes are withheld. The total employer cost is even higher, because the employer adds social tax 33% and unemployment insurance 0.8% on top of the gross.What is net salary?
Net salary, or "take-home" pay, is the amount that reaches the employee's account after income tax, unemployment insurance and the funded pension are withheld. The salary calculator converts gross to net and back.From gross to net in 2026
- Unemployment insurance 1.6% of gross.
- Funded pension (2nd pillar) 2%, 4% or 6% of gross.
- Basic exemption €700 and income tax 22% on the rest.
Example: a €1500 gross salary leaves about €1282 net (2nd pillar 2%).