Mundevo

Glossary · Salary and tax

Net salary

What you actually take home after income tax and employee-side social security are deducted from gross.

Net salary is the figure that hits your bank account. It's gross minus the employee's share of income tax and social security, plus any country-specific contributions (unemployment insurance, pension fund top-ups, healthcare levies).

The relationship is not linear. Most countries use progressive income tax brackets, so doubling your gross does not double your net — higher earners face a higher marginal rate. Social security contributions are usually flat as a percentage but often have a cap above which they stop applying.

Always model the net you'd actually get for your specific gross, not an average rate. A €100,000 offer in a 40%-bracket country leaves more headroom than an €80,000 offer in a 30%-bracket country once the brackets kick in correctly.

Where Mundevo uses this

Related terms

Gross salary
Your salary before any taxes, social security or other employee-side deductions are taken out.
Effective tax rate
The actual share of your gross salary lost to taxes, blended across brackets — almost always lower than your top marginal rate.
Savings rate
The fraction of your net income set aside each month — Mundevo defaults to 10% of net when computing required salary.

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