Determining salary: What does it all include?

The decisive wage is used as the basis for calculating social security contributions.

Wage

The decisive wage consists of various components and must be distinguished from non-decisive components. The decisive wage comprises the total cash and non-cash income of an employee.

It includes the following components:

• Hourly, daily, weekly, or monthly wages; in addition, piecework, piece-rate, and bonus wages, bonuses for overtime, night work, and substitute work
• Local and cost-of-living allowances
• Compensation for travel expenses and customary meal expenses
• benefits in kind in the form of meals and accommodation, private use of a company car, company housing, etc.
• bonuses, long-service awards, loyalty and performance bonuses
• discounts on the purchase of employee shares
• employee profit sharing in excess of the ordinary interest on a capital contribution
• tips (if these constitute a fixed component of the salary)
• Commissions
• Royalties, compensation for attendance at meetings
• Continued payment of salary
• Contributions to social insurance paid by the employer
• Holiday pay and vacation pay
• Severance pay
• Unemployment insurance daily allowances

The following components are not included in the relevant salary:

• Family allowances within the scope customary for the location and industry
• Relocation allowances for job-related changes of location
• Engagement and wedding gifts up to a certain amount
• Insurance benefits in the event of accident, illness, or disability
• Employer contributions to health and accident insurance
• Military pay and pay for civil defense service and voluntary firefighting
• Regulatory benefits from pension funds, provided that the beneficiaries can claim the benefits personally
• Scholarships and similar grants, provided that they do not arise from the employment relationship or the employer cannot dispose of the results of the work

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