Okuzeka
Human Resources vocabulary · Pay, Payroll & Benefits

Deduction

Meaning in human resources, with examples

/dɪˈdʌkʃən/nounCommon term

In human resources, deduction means: An amount of money taken from an employee's pay before they receive it, for example income tax, social security, pension or union fees.

In Turkish: kesinti, maaş kesintisi

How it is used

Payslips list each deduction separately. Some are statutory (required by law) and some are voluntary, such as extra pension contributions. The verb is deduct: 'Tax is deducted at source.'

Example sentences

  1. The deduction for the gym membership will start on your next payslip.

  2. There's a deduction on my payslip that I don't recognise.

Common collocations

  • salary deduction
  • tax deduction
  • statutory deductions
  • deduction from wages
  • gross payThe total amount an employee earns before tax, social security and other deductions are taken off.
  • net payThe amount an employee actually receives in their bank account after tax and all other deductions have been taken off.
  • payslipA document given to an employee each pay period that shows their gross pay, deductions such as tax, and their final net pay.
  • pensionMoney paid regularly to a person after they retire, or the savings plan that employers and employees pay into during working life to provide it.

This word in other fields

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

More terms: Pay, Payroll & Benefits

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level: