From gross to net: the calculation explained line by line

A typical payslip, to the cent

The four steps

1. Social security contributions

13.07% of gross pay. For a blue-collar worker, they are calculated on 108% of gross pay, because their holiday pay is paid separately by a holiday fund.

2. The work bonus

A reduction in these contributions for low and middle earners, in two parts. It falls as pay rises and disappears above €3,403.62 gross a month (full-time reference monthly wage). This is why a pay rise brings in little between about 2,300 and €3,400 gross.

3. Withholding tax

An advance on income tax, calculated with the key formula in Annex III to the Royal Decree implementing the Income Tax Code 1992: taxable pay is annualised, reduced by lump-sum professional expenses (30%, up to €6,070 a year), then taxed on the scale from 26.75% to 53.5%, after a tax-free amount of €11,170. It falls with dependants and thanks to the fiscal work bonus.

4. The special social security contribution

A monthly amount of 0 to €60.94 depending on pay and household situation, adjusted later in the income tax.

What makes net pay vary

On the same gross pay, a blue-collar worker keeps slightly less each month than a white-collar worker, but receives higher holiday pay, paid by the holiday fund. Dependent children and a partner with no income reduce withholding tax. Status matters too: a statutory civil servant, a self-employed person or a student follow other rules.

From withholding tax to final tax

Withholding tax is only an advance. The final tax is calculated the following year on all income, using the personal income tax scale and municipal tax. The difference is refunded or claimed: see Tax refund or tax to pay.

What next?

• Calculate my net payThe full calculator, with your situation.
• Gross to net: examples by amountNet pay from 2,000 to €6,000 gross, situation by situation.
• Method and sourcesAll parameters, with their official sources.