What gets deducted?
- 🧾 Income tax — progressive in most EU countries: higher slices of income taxed at higher rates
- 🏥 Health insurance — mandatory contributions funding the healthcare system
- 👴 Pension contributions — your (and your employer's) payments into state retirement schemes
- 💼 Unemployment & other social insurance — safety-net contributions
- ⛪ Church tax — in Germany and a few others, an extra 8–9% of income tax if you're a registered member
EU examples: where the money goes
| Country | Typical total deductions* | Net from €60,000 gross (approx.) |
|---|---|---|
| 🇩🇪 Germany | ~40–45% | ~€34,000–36,000 |
| 🇫🇷 France | ~40–45% | ~€34,000–36,000 |
| 🇳🇱 Netherlands | ~35–40% | ~€37,000–39,000 |
| 🇪🇸 Spain | ~30–38% | ~€38,000–42,000 |
*Indicative for a single childless employee; actual figures depend on tax class, region and personal allowances. And remember: employers pay additional social charges (often 20–30% of gross) on top — your true cost to the company is well above your gross salary.
Why expats must compare net, not gross
A €60,000 offer in Munich and a €60,000 offer in Amsterdam are not the same deal — different tax curves, different social charges, different cost of living. Always convert offers to net monthly pay, then weigh rent, health costs and lifestyle. That's the number your life is actually lived on.
❓ Salary FAQs
Gross vs net salary — what's the difference?
Gross is pay before deductions; net (take-home) is what's left after income tax and social contributions.
Why is net so much lower in Europe?
Payroll deductions fund pensions, healthcare and unemployment insurance — 35–45% total is normal in DE, FR and BE.
Do employers pay extra beyond gross?
Yes — typically another 20–30% in social contributions that never appear on your payslip.
Is higher gross always better?
Not across borders. Compare net pay plus cost of living — a lower gross elsewhere can mean a richer life.
Related: What Is VAT? · What Is Amortization? · Free Salary Tax Calculator