Construction costs are currently skyrocketing

2022-05-10 11:32:28

With a monthly gross salary, the net increase would not be 6.7% with a gross increase of 7%.

Maybe sit down and calculate it again?

Then the online calculator has an error.

Data:

10k gross, tax class 1, no allowances, statutory health insurance BW, church tax yes, net 5,429.90
10.7k gross, tax class 1, no allowances, statutory health insurance BW, church tax yes, net 5,796.21

Difference 366.31 = 6.75% of 5,429.9

As said, maybe due to contribution assessment ceilings. No idea, I am not a payroll accountant.

2022-05-10 11:33:26

these wage increases further fuel inflation. The labor costs are passed on to the products, services.

2022-05-10 11:42:08

Difference 366.31 = 6.75% of 5,429.9

very nice. Now I can follow your calculation and this is one way to calculate it.

Due to the contribution assessment ceilings, your values are at 6.5%. Better assume 5k or 6k per month, then you are just under 6%.

2022-05-10 11:50:43

Well, I think some people have made a classic percentage calculation error.

If I get a 7% salary increase, of course I don’t have just a 3.5% increase net.
You must not start from the same base; that’s where the mistake lies.

Of course, only roughly half of the gross amount remains. But what was transferred to my account before the raise was not my gross salary but my net salary. So, if I want to know how much net salary increase I have, I must also calculate that from the previous net salary.

Usually, it still won’t be a full 7%. But that’s not due to gross and net, it’s due to progression, meaning I pay more tax on more income.

You can quickly illustrate this with an example.

5000 gross/month + 7% = 5350 gross/month

With tax class I and nothing special, about 2980 EUR net comes out before the raise and 3159 EUR after the raise.

Difference 179 EUR.

179 EUR of 2,980 EUR (that’s the previous net salary) = 6%

So yes, not 7% because of progression... but it’s not just half remaining. (relative to the previous net)

Numbers are from a well-known online calculator....

Very nice. Now I can follow your calculation and that’s one way to calculate it.

Due to contribution assessment limits, you are at 6.5% with these values. Better assume 5k or 6k per month, then you are just under 6%.

???

I don’t understand what you want to say that hasn’t already been said... but yes, then it’s about 6%.

It was about the fact that it’s not just 3.5%.

But related to the topic of construction costs/house building/loans, it was also mentioned that it’s not that simple.
Not everything becomes more expensive evenly, and wages do not increase exactly by the inflation rate...

2022-05-10 11:54:44

Due to the contribution assessment ceilings, your values are at 6.5%. Better assume 5k or 6k per month, then you are just under 6%.

I think, overall, it was more about the order of magnitude... That with the statement of 7% gross, 3.5% more net (or 14 to 7) absolute and percentage increases were confused. (From the absolute amount of more gross, only about half comes to you, but then you also have to compare that with the previous net) Due to tax progression (higher incomes are taxed more) and also fixed allowances, 7% gross are not 7% net either, but it is probably closer for many as an estimate. But hey, even if it is somehow related, we're already miles away from the original topic again ;)

2022-05-10 11:56:18

A quick building material info: Building material dealers like e.g. Bauking partly have order stops, meaning they receive no goods from Wienerberger, or only rationed. There are apparently missing aggregates for tile production. Prices will rise by 30-40%. It doesn’t look so cool right now. Last year wood was the building gold, now clay brick.

Construction costs are currently skyrocketing

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