What is Gross Pay?

Simply put gross pay is an individual’s total earnings throughout a given period before any deductions are made. Deductions such as taxes, medical contributions, or retirement funds are not accounted for when gross pay is calculated. The gross pay definition differs from that of net pay since it does not indicate the take-home salary of an individual.

Gross pay is simple to determine. Just plug your numbers into the gross pay calculator:

Gross Pay = Net Pay + Taxes + Deductions

Employers who familiarise themselves with these two terms are often better equipped to negotiate salaries with workers and run payroll effectively.