Sign in Contact

Sponsored Links

What is Gross Pay?

Gross Pay is the amount your earn before any deductions are made. Gross pay is the amount that you are actually paid by a company. We will use an annual Retail Sales Worker salary for our examples.

Gross pay is almost exclusively higher than Net Pay, Net Pay is the amount you receive after all deductions have been made.

If a company advertises a job for $24,000 per year, this would be the annual Gross pay.

Depending on how your pay slip is configured it can be difficult to identify what your Gross Pay is. It is not unusual to confuse Net Pay and Gross Pay, in fact we are commonly asked what is the difference between Gross Pay and Net Pay?

So, here is a simple explanation of Gross Pay with Gross pay calculations to help clarify the difference between Gross Pay and Net Pay.

Annual Gross Pay Example for a Retail Sales Worker

Our Retail Sales Worker is on a flat salary and earns 37k per year. 37k is therefore the Retail Sales Worker Gross Pay or Gross Salary.

Our Retail Sales Worker then pays 7k in taxes and other deductions (a made up number).

Our Retail Sales Worker subsequently takes home 30k (37k - 7k = 30k). 30k is therefore the Retail Sales Worker Annual Net Pay or Annual Take Home Pay.

Monthly Gross Pay Example for a Retail Sales Worker

Our Retail Sales Worker is on a flat salary and earns 37k per year. 37k equates to circa 3,083.33 per calendar month, therefore the Retail Sales Workers Gross Pay or Gross Salary is 3,083.33 per month.

Our Retail Sales Worker then pays 600.00 per month in taxes and other deductions (a made up number).

Our Retail Sales Worker subsequently takes home 2,483.33 (3,083.33 - 600 = 3,083.33). 3,083.33 is therefore the Retail Sales Worker Monthly Net Pay or Monthly Take Home Pay.

Popular Jamaica Tax & Finance Guides and Calculators

People who read 'What is Gross Pay and how do I calculate gross pay? | iCalculator' also viewed the following finance guides and tax calculators: