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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 that belong to the worker (such as pension contributions) are calculated.

  • Stated in the employment contract
  • Pension is paid from it
  • Taxes to the state are paid from it
  • After these deductions, Net salary remains

Gross 2 (Employer cost)

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

  • Not necessarily stated in the contract
  • Includes Gross 1 + Contributions "ON TOP OF" salary
  • Primarily covers health insurance (in Croatia it is e.g. 16.5%)
  • Shows the actual money the employer loses 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 of your Gross 1 (contributions from salary), while your health insurance is paid by your employer (contributions on top of salary), making Gross 2 larger. The result of these levies makes an essential administrative difference between these two terms in salary calculation.

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