The difference between gross salary and net salary

The gross salary is the amount agreed with the employer, before deductions.

The net salary is what you receive after Social Security contributions and IRS withholding, when applicable. The latter varies according to the gross salary amount, your family situation (for example, if you are married or have dependents), and, in some cases, age, as with the Young IRS.

There are also other elements that affect the amount you receive, such as meal allowances, commissions, bonuses, or how holiday and Christmas allowances are paid, in twelfths or in full. Bonuses are enticing and can help boost savings, but, if they are not guaranteed every month, you cannot rely on them to pay a monthly payment.

Therefore, looking only at the value of one month can give a distorted idea of reality. My advice is to keep your pay slips and compare, month by month, the gross and net amounts. This way, you know what to expect the following month and have a real view of your income at the end of the year.

I have two job offers. Which one is more worthwhile?

Imagine you have two job offers on the table. The first offers a higher gross salary. The second has a lower salary but includes a meal allowance and health insurance.

In this situation, you should not only look at the proposed salary but also at the annual net value, understand if there are extras that depend on objectives, and analyze the conditions of the benefits the company offers.

For example, if you have regular health expenses (appointments, exams, or treatments), health insurance with the coverage you need can translate into savings. Meanwhile, the meal allowance paid on a meal card helps with daily purchases but is not available to pay any expense.

Can a salary increase make you earn less?

"If I move up an IRS bracket, I still end up losing." It's a phrase we hear often, but it doesn't correspond to the truth. Moving up a bracket does not mean that all your income is taxed at the highest rate. This rate only applies to the portion that exceeds the previous bracket's limit.

Think of the brackets as steps. For 2026, up to 12,587 € the rate is 15.2%, and above that, it goes to 20.7%. If you earn 13,000 €, only the extra 413 € pays 20.7%. The rest remains the same. Therefore, with an increase, you always earn more.

It's also worth knowing that the IRS deducted every month from your paycheck, the so-called withholding tax, is just an advance. The accounts are only settled when you submit the IRS declaration, which takes into account everything you earned during the year, what has already been withheld, and the deductions you are entitled to, such as health or education expenses. If you withheld too little, you pay the difference. If you withheld too much, you receive a refund from the State.

Before taking on a new monthly payment

Start by knowing exactly how much money comes into the house every month. Then, define how much of that amount goes to fixed expenses, such as housing, food, and transportation. Finally, see how much you have left after paying all your expenses. This is the amount that tells you if there is room for another monthly payment.

Before accepting an offer, negotiating a raise, or taking on a new monthly payment, do the math on CrediSegur's net salary simulator. You'll find out how much you receive per month and, in the same place, you can compare job offers, see the impact on IRS, and understand how much you can ask for to buy a house. Use the result as a starting point and compare it with your current paycheck.