What are the payroll taxes in Germany: information from International Business

What are the payroll taxes in Germany: information from International Business

Germany is one of the most promising countries for immigration. A high standard of living, many attractions, prospects for visitors even in the absence of a job — all this makes it one of the best options. However, immigration to an EU country has another side — taxes.

How much will you have to pay when you get a job? What rate is in effect here — fixed or progressive? This information was received from an expert from the migration company International Business.

What are the payroll taxes in Germany: information from International BusinessWhat are the payroll taxes in Germany: information from International Business

reaches 45% and is progressive, that is, it depends on your income level. This Europeans consider the most fair form of tax legislation. Thanks to this, such a high standard of living in the country is maintained — after all, all the taxes of citizens go to their provision.

So, the higher your salary, the more deductions the state will expect from you. How to deduct and what to use for this?

When an employee enters the staff of any company in Germany, he immediately gets a special card, but not the one to which the salary is then transferred. This is a document that reflects all receipts and payments. It allows you to monitor the completeness and timeliness of transferring taxes to the treasury.

Thanks to this system, employees of German companies always pay on time and in full. But they don't have to do it on their own. Taxes are withheld by the employer from the salary. That is, you receive less than what is stated in your payroll documents, but do not have to worry about whether your taxes are paid. Your superiors do this for you.

On the forums, reviews of International Business, among others, are also left by migrants in Germany. He notes that at the end of each year, the exact amount is corrected if necessary. This amount needs to be adjusted due to changes in exchange rates and some other circumstances, for example, inaccurate payment of fiscal fees.

Social insurance

This is one of the most important things paid by the employer taxes.

Back to the list social insurance includes:

  • health insurance;
  • insurance in case a person needs to be looked after;
  • pension insurance;
  • policy, providing for the onset of unemployment;
  • accident insurance.

All this ensures the complete safety of the employee and guarantees compensation in all situations listed. No one can guess if any of the above will happen to him, and when it will happen. If any of this happens, then the employee of the company is paid the required amount of funds. But this happens only when he regularly transfers taxes to the treasury.

What are tax classes

The amount of deduction from the employee's salary depends on this parameter in Germany. In total, workers are divided into 6 classes according to income. Belonging to one or another of them determines how many percent of the salary will be withheld.

The third class is assigned to a person if he is officially married. In this case, the second spouse is automatically enrolled in the fifth grade. The third one has the least number of deductions. The peculiarity of this class is that both of the couple cannot take it.

There is another option: both spouses can enroll themselves in the 4th grade. But this can only be done if the salary level is the same or close.

The third class implies the receipt of a minimum salary, that is, 2 thousand euros. 21% is deducted from this amount every month. In total, this amounts to about 420 euros. A little more than 1,500 euros remains to live on — this is quite enough in Germany for a comfortable (but not luxurious) life.

For more information about tax classes, you can find out on the relevant websites or at government agencies.