An annual salary is the remuneration agreed for one year of work. In a job offer, it is generally stated as a gross amount. To calculate the gross monthly salary, divide the annual amount by 12, or by 13 if the salary is paid in thirteen instalments.
What is an annual salary?
The annual salary is the amount an employee is expected to receive over one year of work.
It is commonly used in job advertisements, employment offers and employment contracts. A company may therefore advertise a salary of €30,000 gross per year rather than €2,500 gross per month.
This amount may refer only to the fixed salary. It may also include a variable component, bonuses or a 13th-month payment if this is clearly stated.
It is therefore important to check which elements are included in the advertised remuneration.
Is the annual salary gross or net?
In a job offer or during salary negotiations, the annual salary is generally stated as a gross amount.
The gross salary is the amount before employee social security contributions are deducted. The net salary is the amount remaining after these deductions.
When a recruiter offers a salary of €30,000 per year without further clarification, this therefore generally means €30,000 gross per year.
The net amount actually paid depends in particular on the salary level and the employee’s status. It should not be confused with the net salary after tax, which takes income tax withholding into account.
How do you convert an annual salary into a monthly salary?
To convert a gross annual salary into a gross monthly salary, divide the annual amount by the number of scheduled payments.
When the salary is paid over 12 months, the formula is:
Gross monthly salary = gross annual salary ÷ 12
A gross annual salary of €36,000 therefore corresponds to:
€36,000 ÷ 12 = €3,000 gross per month
Here are several conversion examples:
| Gross annual salary | Gross monthly salary over 12 months |
|---|
| €24,000 | €2,000 |
| €30,000 | €2,500 |
| €36,000 | €3,000 |
| €42,000 | €3,500 |
| €48,000 | €4,000 |
| €60,000 | €5,000 |
These amounts are stated as gross figures, before employee social security contributions are deducted.
Is an annual salary calculated over 12 or 13 months?
An annual salary may be paid over 12 or 13 months.
The number of payments changes the amount received in each instalment, but not necessarily the total salary received over the year.
A gross annual salary of €30,000 paid over 12 months corresponds to:
€30,000 ÷ 12 = €2,500 gross per month
The same salary divided into 13 payments corresponds to:
€30,000 ÷ 13 = approximately €2,307.69 gross per payment
In both cases, the total annual remuneration remains €30,000 gross.
What is the difference between a salary paid over 13 months and a 13th-month payment?
A salary paid over 13 months does not always mean that the employee receives additional remuneration.
The wording “€30,000 gross per year paid over 13 months” generally means that the €30,000 is divided into 13 payments. The 13th payment is therefore already included in the advertised annual amount.
By contrast, “€30,000 gross per year plus a 13th-month payment” means that an additional amount is added to the basic salary.
For example, an employee earning €2,500 gross per month over 12 months, with an additional 13th-month payment of €2,500, receives a total of:
€2,500 × 13 = €32,500 gross per year
The payment terms for the 13th month may vary. It may be paid in a single instalment or spread throughout the year. Eligibility may also depend on the provisions of the employment contract, a collective agreement or the applicable sector-level collective agreement.
How should you interpret the annual salary stated in a job offer?
The wording used in a job offer helps determine what is actually guaranteed.
“€35,000 fixed gross annual salary”
The employee must receive a fixed gross salary of €35,000 over the year.
Any bonuses or variable remuneration are added only if the offer states this explicitly.
“Up to €35,000 gross per year, including variable pay”
The €35,000 amount is not fully guaranteed.
Part of the remuneration depends on certain conditions, such as achieving individual or collective targets. The fixed salary is therefore lower than the maximum amount advertised.
“€35,000 gross per year plus bonuses”
The fixed salary is €35,000 gross. Bonuses are added to this amount in accordance with the conditions set by the company.
“€35,000 gross per year paid over 13 months”
The €35,000 is divided into 13 payments. Each payment is therefore approximately €2,692.31 gross.
Before accepting an offer, it is worth checking:
- the amount of the guaranteed fixed salary;
- whether there is a variable component;
- the conditions that must be met to receive bonuses;
- the scheduled number of payments;
- whether the 13th-month payment is included in the advertised salary.
Where can you find your annual salary?
The theoretical annual salary is generally stated in the employment offer, employment contract or an amendment to the contract.
The payslip, meanwhile, shows the year-to-date salary already received since the beginning of the year.
The employment contract remains the reference document for checking the fixed salary, the number of payments and any bonuses included in the remuneration.