Economics Part B

Gross Salary and Net Salary

The Difference between Gross Salary and Net Salary

Salary Definition:

Salary is the term used for the payment received by employees in return for using their professional skills in giving contributions to an organization.

The Difference between Gross Salary and Net Salary:

Normally a distinction is made between gross salary and net salary because of deductions. A gross salary is the actual amount paid by the employer to its employees. On the other hand, the net salary pertains to the amount remains to the employee after deducting of taxes and other obligations (e.g provident fund, heathcare insurance).

Gross Salary and Net Salary524Gross Salary and Net Salary