Income tax and social security contributions in training

Anyone who is employed or employed and receives a monthly salary must pay wage tax and social security contributions from the money. This applies to permanent employees as well as to trainees.

How high is the wage tax in training?

Income tax does not apply in every case. The legislator has stipulated that the salary must exceed a certain limit before tax is due. The limit is called the basic allowance. In 2018, the basic tax-free allowance was 9,000 euros. For 2019 it was increased to 9,168 euros. That is 764 euros a month. If the training salary is lower, there is no wage tax.

the Income tax class decides on the amount of the tax. There are a total of six income tax brackets. The division into the respective income tax class is based on the marital status:

• Income tax class 1: single, childless employees
• Income tax bracket 2: Divorced employees raising one child alone
• Income tax class 3: married employees
• Income tax class 4: married employees
• Income tax class 5: married employees
• Income tax class 6: Employees who receive a salary from several employers.

In terms of the amount of the tax, income tax class 1 corresponds to income tax class 4. Income tax is due if the monthly salary is over 945 euros. The limit for is in wage tax class 2 a tax-free salary at 1,077 euros. In the other income tax brackets, the amounts continue to rise. Special features must be taken into account if the married spouses can be invested together.

How high are the social security contributions in training?

Every employee is subject to social security contributions and has to pay social security contributions from his or her salary. This applies to health and long-term care insurance, unemployment insurance and pension insurance. Employers and employees jointly bear the contributions.

Health insurance:
• Workers: 7.3%
• Employer: 7.3%

Care insurance:
• Workers: 1,275%
• Employer: 1.275%

Unemployment insurance:
• Workers: 1.5%
• Employer: 1.5%

Pension insurance:
• Workers: 9.3%
• Employer: 9.3%

Depending on which health insurance company the employee is in, an individual additional contribution of one percent and more must be paid. In long-term care insurance, a child supplement is due if the employee is childless. The employee must bear these burdens alone.

Gross salary and net salary

The employee does not have to worry about paying wage tax and social security contributions. The levies are withheld by the employer and forwarded to the tax office and the social security agency. The employee can trace the deduction on his pay slip. There you can find the gross salary, wage tax and social security contributions. The net salary is what is paid to the employee.

The tax declaration

Anyone who as a trainee has no income other than the training salary is not obliged to submit a tax return. However, there is nothing to prevent voluntary donation. This is an advantage if the advertising costs (e.g. trips to work) are higher than the employee lump sum of currently 1,000 euros. In this case, the trainee can expect a tax refund.