Your salary statement in December
You receive a salary statement every month that tells you the amount of salary you will receive in your bank account. In December, the salary statement is more detailed than normal and some of the different terms and figures may not be familiar to everyone. We have therefore made a sample salary statement that we can use to explain how you can identify the different elements from the Terms of Employment Individual Choices Model, buying off holiday hours, the home-working allowance and the annual statement, and whether any additional payroll tax or income tax will be levied on the amounts indicated on the salary statement.
You receive an end-of-year bonus(1) of 8.3% of your annual salary, which is a minimum of € 2,250 (based on a full-time appointment and having worked for a full year). Wage tax has to be deducted from the end-of-year bonus based on the special wage tax rate. This rate is shown on the salary statement under ‘Special tax rate’ (2)
Individual Choices Model
If you have submitted a request under the Individual Choices Model, for which you want to use the year-end bonus as a source, you will see these requests on your salary statement for December. First, the amount will be deducted from your gross year-end bonus. You will see this as ‘Gross deducted’ on your salary statement (3). Payroll tax will then be calculated over the reduced gross amount. The amount of the Individual Choices Model will be recalculated, and you will see this as ‘Net allowance’(4).
You can see which requests hae been included and what the amount is:
- Gr. Deduct / Net allow. EoY Commuting - offset of commuting expenses
- Gr. Deduct / Net allow. EoY Fitness - offset of a fitness membership
- Gr. Deduct / Net allow. EoY Labor Union - offset of labor union membership fees
- Gr. Deduct / Net allow. EoY Study Exp. - offset of study and education costs
- Gr. Deduct / Net allow. EoY Prof. Exp. - offset of professional expenses
- Gr. Deduct / Net allow. EoY Bicycle - offset of the costs for a bicycle (incl. insurance)
- Gr. Deduct / Net allow. EoY Bicycle bat. - offset of the costs for a bicycle battery
- Gr. Deduct / Net allow. EoY Bicycle main. - offset of the costs for bicycle maintenance
Bought off holiday hours
If you have submitted a request after 17 November to buy off holiday hours or if your request was approved after 17 November, you will see the amount that you will receive back on the salary statement for December (5). The amount you reeive back for the holiday hours will be a gross amount. Payroll tax (at a special rate) is levied over this amount.
Have you applied for the home-working allowance and was this approved before 15 December? If so, the allowance will be paid in December for the first time. You will see it twice on the salary statement: 1x under the specification for the month of December (6), and 1x under ‘Payments/Deductions previous period of the current year’ for the months of September, October and November (7). The home-working allowance is a net amount; you do not pay tax on this amount.
The annual statement for 2021 will be available at the end of February 2022. The amount indicated as Basis for wage tax (8) is the amount you will see on your annual statement.