Your salary is back in your bank account! You have worked hard for it, and you also receive your payslip. Lots of figures, amounts and descriptions. But what does it all mean? Below you will find a brief explanation of everything you can find on your payslip.
To begin with, it contains a lot of personal information. You will also find your employer's details here. In addition, it always states the period covered by this statement.
The salary you receive in your bank account is your net salary. This is the amount shown at the bottom of the summary. Before you receive it, a number of items are calculated based on your gross salary. Your gross salary is the amount you earn for the hours you have worked, including any allowances, bonuses, public holidays and paid sick days. Once all these amounts have been added together, the NSSO contribution is first deducted. If you are a manual worker, this is 13.07% of 108% of your gross salary. If you work as an employee, the 13.07% is calculated on 100% of your salary, while for students it is 2.71%. Depending on your salary, you may also be entitled to a reduction of this contribution through the work bonus.
Once the NSSO contribution has been deducted from your gross salary, you are left with your taxable salary. Payroll withholding tax is deducted from this amount. The amount of payroll withholding tax can vary from person to person and may depend on their family situation, or students may be fully exempt if they meet all the income-related conditions. As a result, a colleague with the same working hours may have more or less payroll withholding tax deducted than you.
Important: the payroll withholding tax withheld is an advance payment on the total tax you owe each year. When you submit your tax return, you will receive the final assessment. If it turns out that too much has been withheld, the tax authorities will refund the overpaid amount. If too little has been paid, you will be asked to pay the difference.
We are back to the amount you look at first on your payslip: your net salary. This is the amount left after the NSSO contribution and payroll withholding tax have been deducted. You are often also entitled to a social subscription. These are the travel costs reimbursed to you, depending on the number of kilometres to your workplace and the number of days worked. A net deduction may also be listed, for example a deposit. This amount is then deducted from your salary.
For some jobs, you are also entitled to meal vouchers. You contribute a small amount yourself for each voucher. You will find this on your payslip under the meal voucher contribution, with your personal contribution deducted. The value of the calculated meal vouchers is credited to your meal voucher card after each payment.