Gross salary
Gross salary is salary before deductions such as income tax and employee social contributions are taken out.
An offer may state an annual or monthly gross amount. Confirm the period, currency and payment schedule before comparing figures. Gross pay on an individual payslip may also include items such as a bonus, commission or overtime, so it can differ from the ordinary base salary for that period. Read the payment lines as well as the total.
The amount arriving in your bank account is net pay after deductions. Those deductions depend on local rules and your circumstances, so the same gross salary can produce different take-home amounts for different people. UK payslip guidance, for example, requires earnings before and after deductions to be shown. When comparing offers across countries, use the relevant payroll or tax information rather than assuming a fixed percentage will be deducted everywhere.
Example
An offer specifies €42,000 gross a year in twelve equal payments. The ordinary monthly gross amount is €3,500. The applicant still needs the applicable deductions to estimate their monthly take-home pay.
What to check
- Is the amount annual, monthly or for another payment period?
- Does it include variable pay or only the ordinary salary?
- Which employee deductions apply in your location and circumstances?