Okuzeka
Accounting & Tax vocabulary · Payroll & Employee Costs

Net pay

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, net pay means: The amount an employee actually receives after income tax, social security contributions and other deductions have been subtracted from gross pay.

In Turkish: net ücret, net maaş, ele geçen ücret

How it is used

Also called take-home pay. It appears at the bottom of the payslip and is the amount paid into the employee's bank account.

Example sentences

  1. Net pay is transferred to employees' accounts on the last working day of the month.

  2. Is that figure your gross or net pay?

Common collocations

  • take-home pay
  • net salary
  • monthly net pay
  • net pay amount
  • gross payAn employee's total earnings for a period before income tax, social security and other deductions are taken off.
  • payslipA document given to an employee each pay period showing gross pay, each deduction such as tax and social security, and the final net pay.
  • payrollThe process of calculating and paying employees' wages, including tax and social security deductions, and also the total amount a company pays its staff.
  • withholding taxTax that the payer deducts from a payment, such as a salary, rent, dividend or freelance fee, and pays to the tax authority on behalf of the person being paid.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Payroll & Employee Costs

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This page explains English vocabulary for learners. It is not financial advice.