Net salary—as opposed to gross pay—refers to the actual salary received by the employee after applicable deductions. In practice, the net salary will always be lower than the gross wages.
How to Calculate the Net Salary for a Given Period?
An employee’s net salary for a given period is calculated by subtracting any applicable deductions from the employee’s gross salary. Gross salary is calculated by adding to base salary the various variable amounts received in the course of employment, such as commissions and tips. Applicable deductions depend on the employee’s situation, but commonly include RRSP or insurance plan contributions, as well as various taxes.
What Is the Difference Between Net Salary and Gross Salary?
Nrt pay is the amount of money an employee receives after deductions. Gross salary, on the other hand, is the salary before deductions.