The use of Salary certificate is a certificate for a Payroll period that sets out essential details regarding the Employment relationship, the Remuneration and statutory deductions. The content and procedure are specified in particular by Section 108 of the Industrial Code (GewO) and the Entgeltbescheinigung Ordinance (EBV).
What is a payslip?
The Certificate of earnings presents a employee's remuneration and deduction data relevant for a Payroll period in a uniformly regulated format.
It is created in connection with the billing of the Arbeitsentgelt and contains, in addition to details about the employer and employee, information in particular about earnings, statutory deductions and the resulting net pay.
What is in a Certificate of earnings?
The Certificate of earnings Regulation specifies what information a Certificate of earnings must contain. This includes in particular:
- Information on the employer and the employee
- the Payroll period
- tax and social security characteristics
- Pay and deductions
- taxable earned income and Sozialversicherungsbruttoentgelt
- statutory deductions such as Wage tax and employee contributions to the Social security
- Net pay and disbursement amount
Which individual values are shown depends on the respective employment and accounting facts.
Certificate of earnings and Payroll – what is the difference?
The Payroll denotes the calculation and presentation of the Arbeitsentgelt, including applicable taxes, Social security contributions, and other deductions.
By contrast, the Certificate of earnings refers to the certificate drawn up in accordance with statutory requirements containing the details provided for the Payroll period.
Both terms are therefore closely related, but are not completely synonymous.
Gross, net and take-home pay
The Certificate of earnings differentiates between various payment and deduction amounts. These include, among other things, gross values, statutory deductions, and net pay.
The Gross wage basically describes the Remuneration before statutory deductions. The Net wage results after taking the corresponding deductions into account.
The actual stated payout amount may also be influenced by further allowances, deductions or offsets.
Distinction from certificates for income replacement benefits
The electronically transmitted Certificate of earnings pursuant to section 108 of the Industrial Code (GewO) and the Certificate of earnings Ordinance are Certificates for income replacement benefits to distinguish.
These are required under § 107 of the German Social Code Book IV (SGB IV), for instance, when a social security institution needs information from the employer for Sickness benefit, injury benefit, transition allowance, care support allowance or Maternity allowance.
This is a separate electronic certification procedure and not the regular Certificate of earnings of the employee.
Certificate of earnings, payslip and salary statement
Terms such as Payslip Or Payslip are sometimes used similarly in everyday language. The Certificate of earnings according to the Certificate of earnings regulation, on the other hand, is legally defined in concrete terms.
