Your payslip, simply explained

If you’re working or have ever worked, you’ve definitely held a payslip before. But do you really know what everything means? Here’s a simple breakdown so you can clearly see how your salary is built and avoid surprises.

 

What is a payslip?

A payslip, or salary slip, is a digital or paper document your employer gives you each time you’re paid. It shows your earnings and all the deductions that apply. It’s there to help you check that you’re paid correctly and that all legal contributions are in order.

 

What’s on your payslip?

Your payslip includes several important parts:

• Personal details: your name, address and national register number
• Employer details: your employer’s name and address
• Pay period: the period your salary covers
• Work details: hours or days worked, overtime, absences and any bonuses
• Gross salary: total pay before taxes and contributions
• Social security contribution (RSZ): the amount deducted for social security
• Withholding tax: prepayment of your income tax
• Net salary: the final amount you receive in your account

All this information is required by law and helps you understand how your pay is calculated.

 

How is your salary built?

 

Gross salary

This is the starting point of your salary calculation. It includes all the pay you earn before any deductions. For white-collar employees, this is a monthly salary; for blue-collar workers, it’s an hourly rate. It’s not what ends up in your bank account.

Your gross salary can include:

• Base pay: payment for worked hours or days
• Paid absences: holidays, public holidays, sick leave or short-term leave
• Overtime pay: extra compensation for overtime
• Bonuses or premiums: like an end-of-year bonus
• Benefits in kind: such as private use of a company car
• Commissions: pay based on performance or sales
• Severance pay: compensation when your contract ends without notice

 

Social security contribution (RSZ)

13.07% of your gross salary goes to social security. This funds pensions, unemployment, and healthcare.
For blue-collar workers, it’s calculated at 108% of the gross salary, because there’s no RSZ deduction on the single holiday allowance.
 

Taxable salary

After deducting social security, you get your taxable salary. This is the amount used to calculate taxes. Some benefits that aren’t subject to social security may still be taxed, like a company car or some types of holiday pay.
 

Withholding tax

This is a monthly advance on your personal income tax. The amount depends on your salary, family situation and other factors. If too much or too little is withheld, the difference is corrected when you file your taxes.
 

Other deductions from your net pay

Before you get your final net salary, a few other deductions can be made:

• Special social security contribution (BBSZ): extra amount depending on your household income
• Personal contributions: for benefits like a company car or group insurance
• Meal vouchers: minimum personal contribution of €1.09 per voucher
• Benefits in kind: like a work phone, laptop or company car used privately
• Salary advances or wage garnishments: directly deducted from your pay

 

Net Salary

After all these deductions, you’re left with your net salary – the amount that lands in your account. Extra benefits like meal vouchers, travel allowances or reimbursed expenses can still be added on top.

 

Your payslip might look complicated at first, but once you know what each section means, it’s easy to understand where your money goes and how it’s calculated. You’ll read your payslip with more confidence every time.

 

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