Gross vs Net Salary: The Difference Explained With Examples

What separates gross salary from net salary, which deductions apply along the way (Social Security and income tax), and how to estimate your real net pay.

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It's one of the most common mix-ups when negotiating a job offer: you're offered a salary and assume that's the money you'll see land in your account every month. In Spain, that figure is almost always the gross salary, not the net, and the gap between the two can be considerable.

What gross salary is

Gross salary is the total pay agreed with your employer, before any deductions are applied. It's the figure that typically appears in job postings, in your contract, and at the top of your payslip, but it is not the money that actually ends up in your bank account.

What net salary is

Net salary is what you actually receive in your bank account, once two mandatory items have been deducted: the employee's share of Social Security contributions and income tax withholding.

The two deductions that separate gross from net

  1. Employee Social Security contribution: a percentage of your gross salary (around 6.35% generally, for employees under the general regime) that goes toward funding the pension system, unemployment benefits, and other benefits.
  2. Income tax withholding: a percentage that varies depending on your income level, your region of residence, and your personal and family situation (marital status, children, disability). Unlike the Social Security contribution, this percentage is progressive: the higher your salary, the higher the applicable withholding percentage tends to be.

A simplified example

For a gross annual salary of €30,000, with no children or special circumstances, in a region with average taxation:

Item Approximate amount
Gross annual salary €30,000
Social Security contribution (~6.35%) ~€1,905
Income tax withholding (varies by circumstances) Varies by region and personal situation
Approximate net annual salary The remainder, after both deductions

The exact income tax withholding depends on too many variables to give a single figure valid for everyone, which is why two people with the same gross salary can end up with different net salaries if they live in different regions or have different family situations.

Why this difference matters when negotiating your salary

When comparing job offers, especially if they involve moving to a different region, comparing gross salaries alone isn't enough: differences in regional income tax brackets can mean two offers with the same gross figure result in different net pay. Always comparing estimated net figures, not just gross ones, gives you a more accurate picture of what you'll actually have available each month.

Calculate your exact net salary

Our net salary calculator converts your total gross annual salary into an estimate of your monthly net pay, taking into account your region, your family situation, and the number of payments in your contract.