Perhaps one of the questions that is of particular interest to new employees, as well as everyone else in the case of tax changes, is: how much will I receive in my salary? The net salary is the amount of money that the employee receives “in hand” after all the taxes have been paid. Usually all the mentioned calculations are the responsibility of the accountants, but it is quite logical that every employee should know and be able to calculate the basic amounts themselves.
The required information
In order to correctly calculate the net salary, it is necessary to know the current social tax rate of the employee (11%), the non-taxable minimum calculated according to the amount of the salary, whether benefits are applied for dependants, the amount of personal income tax due, and what the differentiated non-taxable minimum is per month. The State Revenue Service forecasts and calculates the differentiated non-taxable minimum by sending information about it in the EDS system.
A few steps that can help you calculate your net salary:
- social tax is calculated from gross salary multiplied by the social tax rate;
- the differentiated non-taxable minimum corresponding to gross salary is applied;
- the amount subject to personal income tax or PIT is determined by deducting the social tax that is due and benefits for dependants from the gross salary, as well as the differentiated non-taxable minimum;
- the amount of PIT due is calculated by multiplying the amount applicable with PIT by the personal income tax rate;
- thus, the net salary forms by deducting the social tax and personal income tax from the gross salary.
What is the average salary?
According to the data of the Central Statistical Bureau, in 2020 the average monthly gross salary in the country for full-time work was 1143 euros, which means that the average monthly salary after taxes in our country in 2020 was 841 euros. In comparison to 2019, the average monthly salary in 2020 increased by 66 euros or by 6.2%.
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