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What is the gross and net remuneration?Print

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

The following deductions are made from the monthly gross remuneration:

  • in the case of a contract of employment the deductions (subtractions)concern the tax advances and social security contributions and health insurance contributions for an 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 the social and health insurance contributions shall be 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 (ie. 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 a take-home pay, ie. what will the net remuneration be.

Overall, the net remuneration is at about :

  • in case of employment contracts - about 70% of gross salary;
  • in case of a contract of mandate, the net salary is dependent on whether  from 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, if they are not – it is at the level of about 85% thereof.
  • in case of 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 the gross remuneration.

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