Net salary
Net salary is the pay left after taxes and other payroll deductions have been taken from gross salary.
It is often called take-home pay. The deductions depend on the country, your circumstances and the payroll arrangements. Canada's Revenue Agency, for example, explains that payroll deductions can include income tax, Employment Insurance premiums and Canada Pension Plan or Quebec Pension Plan contributions. Voluntary deductions can also affect the amount you receive.
Use net pay when planning what is available for rent and other regular spending, but compare job offers using their stated gross pay and benefits as well. An online estimate relies on the details you enter and may miss a pension choice or another deduction. Check whether a quoted amount is monthly, annual or per pay period. Your first payment may cover only part of a period, so it can be a poor guide to your usual take-home amount.
Example
A hypothetical payslip shows gross pay of €3,000 and total deductions of €700, leaving €2,300 net. These figures do not represent any country's tax rates.
What to check
- Confirm the pay period and currency.
- Review each deduction on your payslip.
- Use estimates based on your own circumstances.