Gross Pay
Gross pay is total earnings before any deductions - income tax, social contributions, and other withholdings. Net pay, or take-home pay, is what remains after those deductions.
How it works
- For hourly work: hours times hourly rate, plus any overtime or double time.
- For salary: the annual figure divided into periods.
- Deductions vary by country and personal situation, so net pay differs even at the same gross.
Why it matters
Rates, budgets, and offers are usually quoted in gross, so comparisons and forecasts should start there - while remembering the employee sees net.
How Sandtime.io fits
Sandtime.io records the hours and rates behind gross pay accurately, giving payroll a dependable starting point. It reports pre-tax amounts, not payroll deductions.
Related Terms
Gross pay builds on the hourly rate, grows with overtime and double time, and is the pre-deduction figure behind payroll.