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Calculator
Gross to NetNet to Gross
What is Gross 1?What is Gross 2?Difference Gross 1 - 2
How is salary calculated?What is included in gross?What items are deducted?Salary calculation exampleMinimum salaryAverage salary
What taxes do I pay?Pension & Health ExplainedTax ratesSurtax – who pays it?Tax reliefs – who is entitled?Personal deduction – what is it?
Common calculation mistakesNegotiating gross salaryGross or net – which is better?How to increase net salary?Regional salary differences
Child tax reliefsReliefs for dependentsDisability reliefsHow to report tax reliefs?
Working from abroadRemote work and taxesWorking for a foreign companyDouble taxation

How to Negotiate Gross Salary?

One of the most important skills in anyone's career is undoubtedly the literacy of negotiating one's own compensation for work. Unfortunately, many workers are afraid to negotiate for fear of losing their place at the table or simply because they don't understand exactly what they're "selling". The labor market works according to the principles of supply and demand: your knowledge is the "commodity", and the employer is the "institution" that needs exactly that.

1. Get Rid of the "Net Amount" Mentality

Many come to an interview with the idea "I want 1,500 KM net". Actually, the employer doesn't care about your net at all. The employer is concerned with how much "cost" you create for them (Gross 2). The amount that arrives in your account after paying contributions and taxes (Net) is influenced by factors the employer has absolutely no influence over: whether you are married, whether you have registered younger family members, and in which municipality you are registered.

When you realize that an employer would be "costing exactly the same" in a Gross sum for a worker with two children in a municipality without strong local taxes (or surtaxes), yet that worker would receive 200 KM more net in hand, you will understand that negotiation must go along the line of the gross base which is fixed and the same everywhere.

2. Clearly Quantify Your Added Value

Bad negotiator:

"I would like a raise because I've been working here for a long time, I try hard, and the rent has gone up."

Excellent negotiator:

"I achieved a 15% productivity increase in my department, I process X clients per day which is above average, directly earning the company amount Y. Therefore, I believe that proportionally adjusting my salary to a higher gross rank is justified."

3. Perform "Market Benchmarking"

Never come unprepared. Before the negotiation, check the official pages of the statistical institute for the selected field of work. Research platforms and forums for evaluating jobs. If the average and median gross salary at your senior and expert level is 2,400 KM, then you have a concrete document to refer to when making a proposal of 2,600 KM for your above-average effort.

4. Set a Negotiation Framework: Minimum, Target, and Aim

The salary negotiation is a mathematical equation of two opposing motivations. Set three boundaries:

  • 1) Walk-away (Minimum):The amount below which you would rather say thank you and look for a better option elsewhere because you cannot adequately finance yourself.
  • 2) Target:Your actual agreed realistic amount considering the industry that you will be very satisfied with.
  • 3) Anchor:A slightly higher amount +10/15% of inflation above the target that you will communicate at the interview itself as the first figure (anchor). Then the employer will aim lower and you find yourselves right in the sweet spot of the "Target".

5. Don't Forget "Tax-free Negotiations"

Employers sometimes have a tied budget due to company hierarchy. Therefore, when you hit a wall with the basic gross, open "Option B". Gross is not everything. If the company cannot raise the gross by 300 KM because it would cost them 450 KM with all obligations, maybe they can offer you a monthly tax-free allowance for utilities (100 KM) because it costs the company exactly zero KM in contributions or coverage of public health costs. Think flexibly.

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