What is included in gross salary?
When we talk about gross salary, we usually mean the amount stated in our employment contract. However, your earnings in a given month will likely not be identical to that basic agreed amount due to various salary supplements. Everything that is paid to you as taxable income constitutes your new total gross base.
Base (Contract)
This is the foundation. The amount you negotiated for your regular work during regular working hours. Independent of bonuses, this is the minimum (provided you worked the full number of hours that month).
Difficult working conditions
Legally prescribed supplements for work during non-standard hours:
- •Work on Sundays
- •Work on holidays
- •Night work (usually from 10 PM to 6 AM)
- •Overtime work
Past work / Seniority
This is a salary supplement for years of service and loyalty to the employer (or total work experience in certain branches). Most often, it amounts to, for example, 0.5% of the basic gross salary for each completed year of service.
Bonuses and incentives
All taxable cash bonuses for achieved results, 13th salary (if legally applicable and taxable), and other rewards.
What is NOT included in gross salary?
There are items that the employer pays that are not part of your gross salary. This means that no taxes or pension contributions are paid on them, and you receive them in full as a net amount in your account. These are so-called Non-taxable receipts:
- Transportation allowance (travel expense)
- Meal allowance
- Daily allowances for official travel
- Vacation allowance
- Christmas and Easter bonuses
- Gift for a child
- Work from home / utility allowance