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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

What is Gross 2?

Gross 2 salary, often known as "Total employer cost", represents the actual financial amount your company must allocate to employ you and pay your salary.

What does Gross 2 consist of?

Gross 2 is a broader and larger amount than Gross 1. Mathematically speaking, it consists of:

  • Gross 1 salaryThe previously explained amount which contains your net salary, pension insurance, and taxes.
  • Contributions "on salary" (Health and PIO at employer expense)These are additional levies that the state requires from the employer on top of the Gross 1 salary amount. In Serbia, this includes health insurance contributions and the portion of pension contributions borne by the employer.

Why is Gross 2 so important?

When you ask for a net raise, the cost of that raise for the employer is significantly higher due to all the levies to the state. Therefore, the employer always calculates Gross 2 to assess the total profitability of your job position.

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