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.