Determining salary: What does it all include?

For the calculation of social security contributions, the relevant wage is the basis.

Wage

The relevant wage consists of various components and must be distinguished from non-relevant components. The relevant wage includes the total cash and in-kind income of an employee.

It includes the following components:

• Hourly, daily, weekly, or monthly wages; additionally, piecework, commission, and bonus wages, premiums for compensation of overtime, night work, and substitute service
• Local and cost-of-living allowances
• Compensations for travel expenses and usual meal expenses
• In-kind benefits such as meals and accommodation, private use of a company car, company apartment, etc.
• Gratuities, service anniversary gifts, loyalty and performance bonuses
• Benefits in receiving employee stocks
• Profit shares exceeding the ordinary interest of a capital deposit of employees
• Tips (if they constitute a fixed part of the salary)
• Commissions and commissions
• Director's fees, compensations for attendance fees
• Continued salary payments
• Employer-paid contributions to social insurances
• Holiday and vacation compensations
• Severance payments
• Daily allowances from unemployment insurance

The following components are not part of the relevant wage:

• Family allowances within the customary local and industry frame
• Compensations for moving due to occupational relocation
• Engagement and wedding gifts up to a certain amount
• Insurance benefits for accidents, illness, or disability
• Employer contributions to health and accident insurance
• Military pay and pay for civil defense services and voluntary fire services
• Regulatory benefits from pension funds, provided beneficiaries can claim the service personally
• Scholarships and similar grants, if they do not arise from the employment relationship or if the employer cannot dispose of the work result