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What is the gross and net remuneration?Print

Gross remuneration is the remuneration indicated in an employment contract and in civil law contracts.

The following deductions are made from monthly gross remuneration:

  • in case of a contract of employment the deductions (subtractions)concern tax advances, social security contributions and health insurance contributions for the employee - more information on health insurance is available here ->);
  • in case of a contract of mandate – only tax advances are deducted; only if the contractor is not insured under a different title are social and health insurance contributions deducted as well (if the contractor is insured under a different title, such deductions are not made) - more information on health insurance is available here ->;
  • in case of a contract for specific work - only tax advances are deducted (i.e. under a contract for specific work the person performing the work is not covered by social insurance and health insurance - more information on health insurance is available here ->).

Thus, the remuneration which the employee actually receives is lower than the amount listed in the contract. The amount of remuneration after deducting all amounts due is the net remuneration. When taking up a job it is important to ask how much money you will receive as take-home pay, i.e. what will the net remuneration be.

Generally, net remuneration amounts to:

  • in case of employment contracts - about 70% of gross salary;
  • in case of a contract of mandate, the net salary is dependent on whether social security and health insurance contributions are deducted from the remuneration. If these advances are deducted, the net remuneration is about 75% of gross salary, while if they are not it is about 85%.
  • in case of a contract for specific work - about 85% of gross salary.

Attention: These percentages are only estimates and are only intended to indicate the average amount of take-home pay in comparison with gross remuneration.

More information on employment contracts and civil law contracts (of mandate and for specific work) is available here ->

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