Why compare net pay, not gross salary
Two similar gross salaries can leave different net pay. Income tax is progressive, payroll relief changes at €20,000, €32,000 and €40,000, and local surtaxes depend on where you live: €3,000 more gross is never €3,000 more net.
An offer is also what does not appear in the salary. Meal vouchers add up for every day worked, company welfare is untaxed within limits, and a longer commute costs money every month.
How an offer’s value is calculated
The yearly value is the sum of three parts.
- Net pay: salary and bonus go through the same engine as the calculator, with contributions, income tax, tax credits and the surtaxes of the chosen town.
- Meal vouchers and benefits: counted at face value. The part above the exempt thresholds is taxed through the payslip, so it lowers net pay.
- Commuting cost: the monthly cost is subtracted for twelve months.
What the comparison cannot measure
The result is financial. It leaves out travel time, remote working days, contract security, career prospects and severance pay (TFR), which accrues in proportion to pay. Use it as a basis for negotiation, not as the only answer.
Frequently asked questions
It depends on the income band. Between €30,000 and €35,000 gross in Milan about €2,600 a year is left, a little over €200 a month: the rest goes to contributions, income tax and lower tax credits.
They are exempt up to a daily value set by law, higher for electronic vouchers. The part above the threshold becomes employment income.
Choose the town of residence for each offer: the regional and municipal surtaxes change net pay. Consider rent and living costs separately, as the comparison does not include them.
Yes, if it is a cash bonus: it is taxed like salary. Enter it in its own field, not twice. Weigh a bonus that is not guaranteed by how likely you are to get it.
Sources and method
- How net salary is calculated
- Income Tax Act (TUIR), art. 51: meal vouchers and benefits in employment income
Figures and rules checked on . The result is an estimate for information and does not replace professional advice.