What gross salary is and what net salary is
Gross salary is the total amount agreed in the contract, before any deduction. It is the figure that is negotiated, the one that appears in job offers and the one used to compare collective agreements and countries.
Net salary is what remains after subtracting Social Security contributions and personal income tax withholding. It is what is paid into the account each month, and that is why it is the figure that really matters for your personal budget.
There is no universal fixed percentage between gross and net. The deduction depends on the salary level, your family situation and the country where you work.
What is deducted from gross in Spain
In Spain, two blocks are deducted. The first is Social Security contributions, which in 2026 amount to around 6.4% for an employee with a permanent contract: common contingencies 4.70%, unemployment 1.55%, vocational training 0.10% and MEI 0.15%.
The second block is personal income tax withholding, which the company applies according to the tax authority's tables. It is progressive: it rises with salary and also depends on your family situation and the type of contract.
The company, for its part, pays its own contributions separately. A gross salary of €1,500 costs the employer considerably more than €1,500 per month.
An example with the 2026 minimum wage
The 2026 minimum wage is €1,221 per month in 14 payments, €17,094 per year. If prorated over 12 monthly payments, that leaves €1,424.50 gross per month.
On that gross amount, the employee bears around 6.4% in Social Security contributions, about €91, and a small personal income tax withholding at this salary level. The net comes to close to €1,300 per month.
With a salary of €3,000 gross, the deduction is higher: contributions are around €190 and personal income tax is already around 15-20% depending on your situation, with a net close to €2,250-2,350. The exact range depends on each case.
Gross and net in other European countries
Each country makes deductions differently, and comparing gross contracts between countries is misleading if you don't look at the net. Portugal pays in 14 monthly instalments and the worker has around 11% deducted for Social Security plus personal income tax, which is progressive from 13% to 48%.
In Germany, contributions are around 40% between employee and employer, and the net usually ends up at 55-65% of the gross depending on the Steuerklasse. In France, the SMIC is around €1,800 gross per month and employer contributions exceed 40%.
The practical conclusion: if you compare offers between countries, first convert them to monthly net and take extra payments into account. A similar gross can give very different nets.
Why it's better to negotiate in annual gross
Salary negotiations are conducted in gross terms, usually annual, because that is the comparable figure between companies and countries. The net cannot be promised in advance without knowing your personal circumstances.
When you are offered a salary, always ask for the breakdown: annual gross, number of payments, variable pay and benefits in kind. With that you can calculate the approximate net and compare offers without surprises.
