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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?
Child tax reliefsReliefs for dependentsDisability reliefsHow to report tax reliefs?
Common calculation mistakesNegotiating gross salaryGross or net – which is better?How to increase net salary?Regional salary differences
Working from abroadRemote work and taxesWorking for a foreign companyDouble taxation
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

Difference Between Gross 1 and Gross 2

Both terms sound similar, and both amounts differ significantly from your Net salary, but the difference between them is crucial for the functioning of the tax and pension-health system.

Gross 1 (Your salary)

The amount from which all deductions belonging to the employee (such as pension contributions) are calculated.

  • Written in the employment contract
  • Pension is paid from it
  • Taxes are paid to the state from it
  • Net salary remains after these deductions

Gross 2 (Employer cost)

The amount that, in addition to the Gross 1 salary, includes levies that burden the employer directly.

  • Not necessarily written in the contract
  • Includes Gross 1 + contributions "ON" salary
  • Primarily covers health insurance
  • Represents the actual money the employer spends from the company account to pay the worker's salary.

Simple Difference Formula

The easiest way to remember it:

BRUTO 2 = BRUTO 1 + Health insurance contributions

Note on insurance: It is interesting to note that "you pay" for your pension by setting aside a part from your Gross 1 (contributions from salary), while your employer pays for your health insurance (contributions on salary), making Gross 2 higher. The result of these levies makes an essential administrative difference between these two terms in salary calculation.

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