Gross vs Net Salary

Definition

Gross salary is your total pay before any deductions, while net salary, or take-home pay, is what remains after income tax, national insurance, pension contributions, and other deductions. Job offers usually quote the gross figure, so your actual monthly income will be lower. Understanding the difference helps you compare offers accurately and budget realistically rather than being surprised by your first payslip.

Usage Example

The offer listed a 40,000 pound gross salary, but his net pay after tax and pension was noticeably lower.