What is the difference between your gross and net salary? Your gross salary is the amount stated in your employment contract and what you have agreed with your employer. The amount that you ultimately receive in your bank account is your net salary. This difference is caused by various deductions, such as taxes and premiums. But how does this work exactly?
income tax
The largest deduction from your gross salary is the payroll tax. This consists of:
- Payroll tax: A contribution that every employee pays to the tax authorities.
- Premiums for national insurance: Such as the AOW (pension provision), ANW (survivors' benefit) and WLZ (long-term care).
Your employer pays these amounts to the tax authorities, which means that you do not receive part of your gross salary as net income.
Social contributions
In addition to payroll tax, there are also social premiums paid by your employer. These include premiums for the WIA (disability), WW (unemployment) and Sickness Benefits Act. These premiums insure employees against loss of income in the event of disability, unemployment or illness. You will find an overview of these deductions on your pay slip.
Pension premium
If you participate in a pension scheme through your employer, part of the premium is often deducted from your gross salary. Your employer usually also pays part of this premium. In this way, you build up your pension together with your employer.
The importance of checking your payslip
Your payslip contains an overview of your gross salary, the deductions and your final net salary. It is wise to check your payslip regularly. This way you can be sure that all the deductions are correct and you will better understand how your net salary is composed.
Help from De Unie
Do you have questions about your salary, do you find the deductions confusing, or do you suspect that something is wrong with the calculation? The specialists at De Unie are happy to help you.
Contact our Service Center. We are available every working day from 8:30 to 17:00 via sc@unie.nl or call 0345 851 963.
