Last Updated on May 18, 2025
At first glance, there is no difference – a salary is a salary – the main thing is that it is there. However, what you receive often says something about who you are. Let’s find out what the difference is: Lohn or Gehalt, or maybe Vergütung or Honorar? At the same time, we will sort out the eternal question: Einkommen or Einkünfte.
Betrag or Beitrag, vertragen or ertragen and other members of tragen family
From horror to anxiety: fürchten, Angst haben, erschrecken, bangen, entsetzen
Reach an agreement: vereinbaren vs verabreden, ausmachen etc.
Fahrstuhl or Aufzug or Lift
Difference between enden and beenden, abschließen, aufhören
Use: difference between benutzen and verwenden, nutzen, gebrauchen, anwenden
Difference between ändern and verändern, verwandeln, wechseln and tauschen
Lohn or Gehalt
The most neutral word is der Lohn. The original meaning is related to catch a prey.
If you receive das Gehalt, it means that you are either a Beamte or an Angestellte – work for the government or are a higher level specialist (white collar worker).
What’s the difference with Lohn? Officials don’t run after prey, they are maintained. To receive Ge-halt is essentially to be supported (cf. halten, unterhalten).
In everyday life, however, Lohn and Gehalt can usually be used interchangeably. Both words imply gross income.
die Entlohnung – payment of wages (Lohn).
Sold, Besoldung
We are not done with the officials yet. At one time, those who fought for the emperors, kaisers and their followers received gold coins Sold – hence they are called soldiers. Die Besoldung is a reward for service. Accordingly, whoever serves (performs Dienst), he receives it. For example, judges.
Reward, fee, compensation
Three other words have narrow meaning.
Honorar – from the word “to honor”. Originally, it was a payment to a scientist or artist. However, in Germany, there is a type of work “auf Honorarbasis“, in which all deductions are made after the income is received. Freiberufler or Handwerker work this way most often.
So you can use the word Honorar to mean “reward for work,” but be careful because it has a narrow meaning with tax implications.
More: What is selbstständig, Unternehmer, Honorar, Firma in Germany
die Gage – payment for a performance, usually musical.
die Aufwandsentschädigung – here we have a compound word that speaks for itself: Aufwand – inconvenience caused to a person, Entschädigung – compensation for the negative consequences of these inconveniences. For example, you spent your time taking your children to a competition and used your car. The sport club compensates you for your inconvenience as Aufwandsentschädigung (if you fill out a special form). This word is often used in connection with volunteer work or donations.
And the following three words have a broader meaning, than Lohn.
das Entgelt – remuneration for work or services, in any form. When referring to remuneration for work, the clarification Arbeitsentgelt is usually used. As with other words denoting salary, this means gross.
die Vergütung – remuneration, compensation for efforts expended, work performed, services rendered, for goods delivered in a broad sense – regular or one-time, additional, etc.
The word Vergütung has a broad meaning, which makes sense given its origin from a word with a similarly broad meaning: gut (meaning originally “suitable” or “fit”) – das Gut (property, possessions, goods) – vergüten (to compensate with something of value, to repay with goods, or to improve someone’s assets in return for services).
In your employment contract, you will most likely find a section under this title, which will list all the benefits that you are required to receive in exchange for your work.
der Verdienst – similar to Arbeitsentgelt, your income from work. The word is used unevenly regionally, so you may not hear it in this meaning in your region at all. And since das Verdienst (the article!) is more often used to mean “merit”, it is better to be careful with this word. Especially since there are plenty of alternatives.
Income in general: Einkommen or Einkünfte
das Einkommen – this is what came (kommen) into your wallet, your income.
die Einkunft (usually in the plural Einkünfte) – it’s the same thing, oddly enough.
Kunft – derivative of kommen.
If in the case of Einkommen we are dealing with an unchanged verb that has become a noun (substantial verb), then in the case of Einkunft we are dealing with a noun formed from a verb with the help of a suffix. There are other similar pairs, for example das Sehen – die Sicht.
Pay attention, that different word formations determine different articles and the plural forms, although the meaning is the same.
More:
Plural, declension, and gender in German. Feminine gender
Plural, declension, and gender in German. Masculine gender
Plural, declension, and gender in German. Neuter gender
It would seem that there is no problem, use the word that comes to mind. However, when you fill out a tax return, Einkommen and Einkünfte suddenly become different concepts. Einnahmen is also added to them.
Einnahmen – everything that has fallen into your account or served your pleasure in a non-monetary form (breakfasts from the employer, a work bicycle, etc.).
From the Einnahmen, the Einkünfte are calculated: minus everything that allowed you to receive these amounts. Depending on the type of Einkünfte, you can subtract different expenses. For income in the form of a salary from an employer, these will be Werbungskosten. For income from entrepreneurial activity – what allows you to conduct this activity (advertising, rent, etc.). For income from renting out – the costs of maintaining the property in the rented form.
Once you have deducted from your income what you are allowed to deduct, you have received the Einkünfte amount.
The good state then allows you to deduct a few more expenses out of pity or as an incentive, such as health and pension insurance and other Sonderausgaben. The result is Einkommen.
Follow the transformation of one into another (Einnahmen – Einkünfte – Einkommen): How to calculate tax in Germany. What is written in Berechnung in Elster
German tax return Elster. Anlage Sonderausgaben
So we can’t say that one word means pre-tax income and the other means post-tax income – they are both pre-tax, just with different amounts of deductions.
It’s surprising that with so many synonyms, there is no specific word for what is the result of all the endless deductions, including tax. Apparently, the people have run out of decent words here. However, you can use the word Nettoeinkommen if you need to designate the cleanest financial residue in your wallet.
Betrag or Beitrag, vertragen or ertragen and other members of tragen family
From horror to anxiety: fürchten, Angst haben, erschrecken, bangen, entsetzen
Reach an agreement: vereinbaren vs verabreden, ausmachen etc.
Fahrstuhl or Aufzug or Lift
Difference between enden and beenden, abschließen, aufhören
Use: difference between benutzen and verwenden, nutzen, gebrauchen, anwenden
Difference between ändern and verändern, verwandeln, wechseln and tauschen
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