HR Glossary / Gross Wages

Gross wages represent the earnings of an employee including overtime and bonuses before taxes and deductions.


What Is the Difference Between Gross Wages and Net Wages?

Gross wages and net wages both refer to the salary of an employee. What distinguishes them is whether or not deductions have been accounted for.

Gross wages correspond to the salary of an employee before deductions, whereas net wages represent the amount of money an employee actually received after deductions. Net wages are typically lower than gross wages.

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