Making sense of a Lohnabrechnung — the monthly payslip employees get in Germany — comes down to checking four lines: the gross hourly rate, overtime tracking, the childless care-insurance surcharge, and your tax class, since these are where employer or payroll errors most often turn up.
In short
- The hourly minimum wage for 2026 cannot be lower than €13.90 — anything less is a reason to contact a lawyer or a union.
- A “Z” in the Pflegeversicherung field means no children and an extra 0.6% deduction — about €144 a year in overpayment.
- The children’s discount applies even if they live abroad — a birth certificate with translation is enough, and “Z” changes to “E.”
- An incorrect tax class (one instead of three or four for married couples) can be fixed by submitting marriage and children documents to the Finanzamt.
- When discussing pay with an employer, the reference point should be the gross figure — net is individual and depends on tax class, children, and contributions.
What a Lohnabrechnung is and why these 4 lines matter
A Lohnabrechnung is the monthly payslip a German employer issues to each employee. The document contains 74 fields covering earnings and deductions.
Most employees look at just one number — the net amount paid out. But the rest of the fields explain why that number came out the way it did: tax class, whether you have children, and possible extra contributions tied to health status or pension arrangements all determine how much of the gross salary actually reaches the account. That’s why two colleagues on the same hourly rate can end up with different net pay.
That’s why two colleagues on the same hourly rate can end up with different net pay.
That’s also why, when talking to an employer — in an interview, or when negotiating terms — it’s the gross figure that should be the reference point, not net: net pay is shaped by all 74 fields and is specific to each employee. Going through every field at once is hard, but there are four lines worth checking first.
When negotiating pay with an employer, quote and compare the gross figure. Net is individual — it depends on tax class, children, and contributions, so colleagues on the same rate can end up with different net pay.
Line 1: gross pay, hours worked, and the €13.90 minimum wage
The first line on the payslip is gross pay. It shows three figures: the hourly rate, the number of hours worked that month, and the value of one hour. These fields are only filled in for hourly employees; salaried staff on a fixed monthly contract will see this line blank.
The hourly minimum wage for 2026 cannot be lower than €13.90. If the payslip shows less, that’s a reason to look more closely at the paperwork and, if needed, contact a lawyer or a union.
The number of hours worked is worth checking independently: an employee should know how many hours they actually worked and compare that figure against the line on the payslip, multiplied by the hourly rate. For staff placed through a temp agency, the actual hours worked often exceed what’s shown in the document.
When discussing pay with an employer or negotiating terms at a company, salary is normally quoted as gross, not net. The take-home amount (net) depends on individual factors — tax class, children, extra contributions — so colleagues on the same gross rate in the same role can end up with different net pay.
The hourly minimum wage for 2026 cannot be lower than €13.90. If your payslip shows less, check the paperwork and contact a lawyer or a union.
Count your actual hours worked yourself and compare them against the payslip line. With temp-agency placements, real hours often exceed what’s shown.
Line 2: overtime (Überstunden) and extra days off
The second line on the payslip is Überstunden — hours worked beyond the standard. This field is filled in when the actual hours worked exceed the figure in line one.
But overtime isn’t always paid out in cash. If the employment contract states that extra hours are credited as additional days off instead, Überstunden may not appear on the payslip at all — instead, check the separate field for extra days off, which is also part of the document. Which arrangement applies depends on the contract terms, so it’s worth rereading the contract before checking this line.
Überstunden may not appear on the payslip at all — instead, check the separate field for extra days off
Line 3: the Pflegeversicherung deduction and the discount for children
The third line on the payslip is the deduction for Pflegeversicherung, Germany’s long-term care insurance. The standard rate is 3.6% of salary, split in half: the employer pays 1.8%, and another 1.8% is deducted from the employee’s pay.
The amount withheld changes depending on whether the employee has children. A “Z” marked in the relevant field means no children. In that case, an extra 0.6% is added to the standard 1.8%, so 2.4% rather than 1.8% is deducted from the employee’s pay. On an income of €2,000, that works out to roughly €12 a month, or €144 a year, charged purely for not having children.
If an employee has two or more children, a different mechanism applies: a 0.25% discount kicks in starting with the second child and applies to each additional child up to and including the fifth. So the more children, the smaller the percentage that actually goes toward this insurance.
If the children field doesn’t reflect children an employee actually has, that employee is overpaying this 0.6% every month for no reason — this is a field worth checking specifically.
A “Z” in the Pflegeversicherung field means “no children” — an extra 0.6% is deducted, roughly €12 a month. If you have children but “Z” is still showing, that’s an unjustified overpayment.
Getting the discount when children live abroad
The children’s discount also applies when minor children live outside Germany — including in Ukraine. Where the child lives doesn’t matter; what matters is the fact of the child’s existence and having a document to prove it. To get the discount, you need to submit the child’s birth certificate with an official translation. After that, the payslip shows an “E” instead of “Z,” signaling that the Pflegeversicherung deduction has been reduced to account for children.
Line 4: tax class (Steuerklasse) and a common mistake for married couples
The fourth line is the tax class (Steuerklasse), and it’s found in the header of the payslip, not among the main earnings entries. A common mistake: the document shows tax class one regardless of marital status or children. The reason is simple — the Finanzamt hasn’t received the marriage and children records, because that information isn’t passed on automatically.
The classes break down as follows:
- class one — for single people;
- class two — for single parents, with its own deduction;
- classes three and four — for married couples, and the difference in deductions between the two is now effectively negligible.
If the class is set correctly, a married employee can reclaim overpaid tax through the Finanzamt. But if the document shows class one, the tax office treats that person as unmarried — and no tax relief for having a spouse or children can be applied. Depending on the situation, an overpayment is possible, but in most cases it’s refunded.
the tax office treats that person as unmarried — and no tax relief for having a spouse or children can be applied
There’s one more nuance for married couples: one partner can be assigned class five even without a formal job. With class three, more money is paid out each month, even though the actual tax deductions are lower. If the partner with class five also earns income, the final reconciliation with the Finanzamt may show that extra tax is owed.
An incorrectly assigned tax class can be fixed by submitting documents proving marriage and the number of children to the Finanzamt.
If your payslip shows class one despite being married or having children, submitting marriage and children documents to the Finanzamt is usually enough — the overpaid tax is refunded in most cases.
Other fields on the payslip: vacation days, deductions, and what to do if something’s missing
Beyond the four main lines, the lower part of the payslip has a separate field for deductions — an advance, a loan, or other withholdings an employee might not even be aware of. If there’s been a dispute with the employer, this field sometimes shows entries that shouldn’t be there — it’s worth checking separately from the main earnings entries.
The document also shows the number of remaining vacation days. If this information isn’t on the payslip, that’s not a document error — it can simply be requested from the employer separately.
What absolutely must be on a Lohnabrechnung is data on deductions, taxes, the salary itself, and pension contributions. Everything else consists of reference fields worth glancing at, but it’s not critical if they’re blank.
What to check on a Lohnabrechnung before you put it away
Frequently asked questions
Can a tax class be corrected retroactively for previous months?
Yes — if marriage and children documents are submitted to the Finanzamt late, any overpayment from earlier periods is usually refunded at the final annual reconciliation. Filing late doesn’t forfeit the right to a review; what matters is supplying the supporting documents.
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