Gross pay
The total annual salary before any tax, social-insurance, or pension deductions are taken out.
Gross pay is the headline number on a job offer or employment contract — the full amount the employer commits to pay before any deduction. It is the input to every take-home pay calculator, including this one. From gross pay, tax authorities and social-insurance schemes subtract their respective amounts to arrive at the take-home (net) figure.
Gross pay includes the base salary plus any guaranteed regular allowances (e.g. London weighting in the UK, 13th-month payments in some European countries). It does NOT include discretionary bonuses, profit share, or benefits-in-kind (company car, health insurance, stock) — those carry their own tax rules that this calculator does not model. Where a contract quotes a monthly figure, multiply by 12 (or 13 / 14 depending on the country's convention) to obtain the annual gross used here.
Calculator pages that use this term
See also
- Net pay (take-home) — The amount actually deposited in the employee's bank account after every statutory deduction.
- Marginal tax rate — The percentage paid in tax on the next unit of income earned — distinct from the average effective rate.
- Effective tax rate — Total deductions divided by gross pay — the single percentage that summarises the overall tax bite.