Net pay (take-home)
The amount actually deposited in the employee's bank account after every statutory deduction.
Net pay — also called take-home pay — is what is left of gross pay after income tax, social-insurance contributions, and any other statutory withholdings. It is the number that matters for monthly budgeting because it is what actually arrives in the bank account.
For a UK employee earning the basic-rate band, the gap between gross and net is roughly 28% (20% income tax + 8% National Insurance once the Personal Allowance is used up). For a German Steuerklasse I worker at €50,000, the gap is closer to 35% because Sozialversicherung contributions are higher. The country-specific calculators on this site compute the exact net pay using each tax authority's current rules.
Calculator pages that use this term
See also
- Gross pay — The total annual salary before any tax, social-insurance, or pension deductions are taken out.
- Effective tax rate — Total deductions divided by gross pay — the single percentage that summarises the overall tax bite.
- Marginal tax rate — The percentage paid in tax on the next unit of income earned — distinct from the average effective rate.