Company share saving schemes

Basic questions here:

Is it normal to base the % thata you pay into the scheme on your Net or Gross Salary?

Is this then deducted from your Net or Gross salary?

I have recieved a statement where the calculation is based on my Net Salary but the deduction is taken from my Gross salary

Maybe someone can explain the logic off this as it's Monday morning and I'm struggeling to understand this ;-)

What calculation?. Depending on the scheme, taking the money from your gross salary has the effect of reducing your gross income, and therefore your liability for tax. I.e. you are getting the contribution tax-free...

by calculation I meant the % of your income whicj gives you the Euro figure to be deducted - hope that's clearer.

Looking again it does look like the sum is being taken off my "netto verdienst"

Then it comes down to your participation agreement. They are taking a %age of your net salary and deducting it from net salary, so you are not getting any tax breaks. The tax breaks usually come if/when you sell at a profit, insomuch that the profit you earn is not taxed, unless of course you are buying at a discounted price, in which case you already made on the deal without tax. Different schemes do it differently...

Hi,

Thanks:

they are taking a %age of my gross salary and deducting it from net salary

Is the good bad or indiffernt?