Gross vs Net Salary Explained
What is the difference between gross and net salary? A complete guide to understanding your pay.
What is gross salary?
Gross salary is your total pay before any deductions. It includes your base salary, bonuses, overtime, commissions, and any other compensation. This is the number that appears in your employment contract and job offers.
What is net salary?
Net salary (also called take-home pay) is what actually lands in your bank account after all mandatory deductions: social contributions (pension, healthcare, unemployment), income tax, and any voluntary deductions (retirement savings, health insurance top-ups).
How much is deducted?
The gap between gross and net varies enormously by country. In the UAE, gross equals net (0% tax). In Belgium, you can lose over 50% to deductions. Most European countries fall in the 25-45% range, while the US is typically 20-35%.
Use our Salary Calculator to see the exact difference for your country and salary level.