Gross Salary Meaning

Gross Salary Meaning 

Surprisingly when you ask some people how much their salary is, they mention their Gross Salary on the payslip rather than their net Salary.

Gross Salary Meaning; is the amount of money you earn thus your total earnings before any kind of deductions.

So if all the work you did at the end of the month you are paid 5000, the 5000 is the Gross Salary, it is the total earnings, but you know, you can’t take all the 5000 home, hence, the government might take their income tax your social security might make some deductions, you may have some union contributions, that will also be deducted and if you have a loan the repayment percentage will also be deducted.

It is after these deductions that you take the remaining money home thus your net salary commonly referred to as your Take Home.

You will be disappointed when you are recruited and you refer to the gross salary to make your plans.

Always check for the Net Salary, which is the Money paid to your Bank, and check your payslip to confirm the Amount sent to your Bank.

Don’t be deceived by Employers, they want you to feel the salary they are mentioning is huge hence they will prefer mentioning your annual Gross salary and Monthly Gross Salary than your net salary.

Always Clarify from them if they mean the Net salary or the Gross salary, don’t assume they should be telling you about your take home.

You may be disappointed after deductions.