What is the difference between gross pay and net pay?

[niyati]

I was checking my salary slip and noticed a big difference between the amount offered and the amount credited.

 

[jatin]

Net pay, sometimes referred to as take-home pay, is the amount an employee receives after all deductions are made from their gross pay. Gross pay is the total amount of money an employee makes before any deductions.

 

[maria]

Gross pay is the total earnings an employee receives before deductions, including salary, bonuses, and overtime. Net pay is the amount the employee takes home after taxes, insurance, and other deductions. Simply put, gross pay is the full amount earned, while net pay is the final amount received.

 

[Gsusangrey]

Gross pay is total earnings before deductions (taxes, benefits). Net pay is take-home pay after deductions. For example, a $1,000 gross pay might result in $750 net pay after taxes.

 

[Rick_Grimes]

Gross pay is your total salary before any deductions (like taxes or insurance). Net pay is what’s left after all deductions — basically, the amount you actually get in your bank account.

 

[Shane Warne]

The actual sum, before taxes and deductions that you make up the gross pay. Net pay is when pay is actually paid at the end of the day after taxes, insurance among others are deducted.

 

[robertwilliam]

Gross pay refers to your total income before deductions are made, while net pay refers to the actual amount you receive in your pocket after deductions like taxes, insurance, and retirement contributions have been taken out. Gross pay is the total and initial amount earned, while net pay is the amount you finally receive in your paycheck or bank account.

 

[Sophie]

Gross pay is the total salary earned before employer payroll deductions, while net pay is the actual amount paid to you, after taxes, insurance and other deductions have been subtracted.

 

[Lucas]

Gross pay is your total earnings before deductions.
Net pay is what you take home after taxes and other deductions.