What is a monthly salary


The term “wage” is understood to mean an agreed, fixed and regular remuneration from dependent work, which is paid to the employee at the end of the month for his services. The salary and wages are regulated in an employment contract. The wage is usually a compensation for the work and thus an amount of money that the employee receives from the employer on a monthly basis.

What is the difference between wages and salaries?

The distinction between salary and wages was widespread well into the 20th century. “Salary” used to refer to a monthly and constant remuneration, the wage was an hourly remuneration. Nowadays, however, only the term remuneration is used in legislation and collective agreements, which merges the split between salary and wages and brings it to a common denominator. Colloquially, however, the term wage is still defined according to hourly wages, daily wages, annual wages, monthly wages or weekly wages. No wonder, because a “salary” is mainly paid by employees and unskilled workers. “Day laborers”, i.e. workers without a permanent contract, are often agricultural workers, craftsmen or seasonal workers. The remuneration that is paid to a worker at the end of the day is called an hourly wage. A “weekly wage earner”, on the other hand, receives his wages at the end of a week, usually every Friday. Here, too, the amount of the fee is billed by the hour. But in recent years the monthly wage has become more and more popular. In the case of monthly wages, payment is made at the end of the respective month in which the work was carried out. However, there are also contracts in which wages are paid on the 15th of each month. This variant is often stipulated in the tariff. Nowadays, the annual wage is only of importance in terms of tax law.

The amount of the fee

How much the monthly salary is to be paid is contractually stipulated and can be freely agreed in accordance with the Basic Law, in which freedom of collective bargaining and contractual freedom is documented. However, the minimum wage of EUR 8.50 introduced in 2015 may no longer be fallen below. However, this minimum wage is gross, so the net hourly wage actually paid is much lower. In addition, the long-term unemployed are not entitled to a minimum wage in the first six months. The same applies to newspaper deliverers as well as children and young people in the sense of the Youth Labor Protection Act without a professional qualification. The minimum wage is slowly but surely being introduced for seasonal workers.

Factors influencing wages

The salary that is paid, apart from the minimum wage, depends heavily on the training or qualification of the employee, the market situation, the stresses and dangers of a job and skills. Some professions pay a risk bonus, in gastronomy the tip can be withheld without affecting the salary. There are also surcharges, for example in shift work on weekends and at night. Although differences between men and women should be eliminated in the course of equality, men are usually still paid more than women in the same position. Comparisons with colleagues are also not very useful. On the one hand, one's own abilities should not be equated with those of another person, but on the other hand, the salary is not only composed of the abilities or qualifications. Soft skills also play a decisive role. It may be that the colleague has poorer qualifications, but the soft skills are excellently trained and he is therefore paid a better salary - for example because he has more responsibility.

Tax brackets and insurance

In addition, there are simple facts, such as a different tax class, which is rarely made public. Someone who is married, has 3 children and whose wife works, of course, due to tax class 3 or 4 and the child allowance, has a significantly higher salary than an employee who is in wage tax class 1, 5 or 6. When calculating the salary, for example, play capital formation benefits or church tax also play a role. Not everyone pays church tax, for example because they have left the church. This eliminates the church tax in the calculation and the person automatically earns more. Another point is health insurance. Although the rates have been adjusted in recent years so that there are only minor differences between the various health insurance companies, it can still happen that the minor differences affect the salary. Voluntary private insurance is also possible, which then has a significant impact on the book and the salary is correspondingly lower. Added to this are the compulsory pension insurance and any income-related expenses.

When should wages be negotiated?

Frictions often arise in companies when pay is unequal between employees. But here the standards must first be viewed objectively:

➤ Does the colleague work overtime?

➤ What training does he have?

➤ Does he work in shifts?

➤ Does he work full or part time?

➤ What management responsibility does he have?

➤ What is the family situation like?

Based on these points, you can see how differently the same work can be paid, not because the boss is taking advantage of the colleague, but because the colleague simply fulfills other criteria. However, if you are sure that you are not earning enough, you should talk to the boss and clarify the situation. If there are no differences to the colleague, then it is also time for a salary negotiation.

The best time to negotiate wages

If you are of the opinion that you are not earning enough, you should talk to your boss about a wage increase. The wages are, however, a sensitive matter that should not be discussed between door and door. Before the boss is approached about a wage increase, he should be able to assess the performance a few months in advance. If the boss has a positive attitude and praises the performance, a specific point in time for initial negotiations can be agreed. But never fall into the house with the door, rather investigate whether the boss is also receptive to it, because everyone has problems, stress or simply bad mood. In addition, you should not be asked directly about a salary increase, but rather about an assessment of the performance. In this way you can find out during the conversation whether a question about a better salary is worthwhile. If the prerequisites for this are met, there is only hope for a positive result.