Consumer Comeback Blog

Credit Score Glossary: Gross Pay vs. Net Pay

Gross Pay vs. Net Pay: Gross pay is an employee’s total salary, whereas net pay is what an employee is paid after deductions.

Gross pay includes bonuses, commission, overtime pay, and any allowances. Net pay, commonly referred to as ‘take-home pay’, is the amount after deductions (i.e. taxes, Social Security, retirement contributions, etc.). Job salaries are based on gross pay.