Division Lines (18) to (23): Calculation of civil servants’ gross wage

To have a common denominator for the benchmark rates, it is important to note that the private-employee’s gross wage is generally defined as net wage plus the employee’s share of the social contributions. As civil servants have to finance 30 % to 50 % of their health care expenses but do not contribute to the pension and unemployment insurance, the incurred civil servant wage equals the private employee’s gross salary (100 %) minus the employee’s share of the social contribution rate for pension and unemployment insurances. It rests on the assumption of a 50 % contribution to the health insurance by civil servants themselves.

Line (21) expresses the incurred civil servant wage in percentage of the private employee’s gross wage). To calculate the civil servant’s gross wage sum, the incurred civil servant wage is inflated by 100/(100 – employee’s share of unemployment and pension insurance) as shown in line (23).