Your take-home pay, also known as net pay or net salary, is the amount of money you receive after specific deductions such as tax, national insurance, pension contributions and student loan payments have been made from your gross monthly salary.
Your gross monthly salary is the total amount you earn as an employee each month.
This gross figure has had none of the necessary deductions applied.
Both gross and take-home salary will be outlined on your payslip, including a breakdown of your deductions. On your payslip, you will also find your payroll number and tax code,
which impacts how much tax and national insurance you pay.
The tax code you are assigned, and therefore the proportion of your salary you will be required to pay in tax and national insurance, depends upon the amount you earn per month.
It is important that you receive a payslip each time you are paid and keep them safe for future reference. Some companies use online systems, so their payslips are accessible via a website or portal. If you are an employee or a casual worker, you are entitled to a
Whilst your payslip will help you to understand your take-home salary and how it is reached, it is useful to be able to calculate your net salary for yourself.
The process means you will learn more about how deductions are calculated and will gain an understanding of the different thresholds and factors that influence them. It also means you will easily be able to sense-check your payslips.
Every employee has different salary deductions relating to their circumstances and salary grade. They will, therefore, have differing take-home salaries.
Offered Free by: WikiJob
See All Resources from: WikiJob