Meaning & use
gross pay
Last updated
Meaning
noununcountablebusinessfinance
The total amount of money an employee earns before taxes and other deductions are subtracted.
Grammar: Uncountable; used with 'the' or without an article.
Patterns
- gross pay is $...
- earn gross pay
- before deductions
Her gross pay is $4,000 a month, but after taxes she takes home much less.
The company calculates gross pay before deducting health insurance.
Your gross pay appears at the top of your paycheck.
Common combinations
- gross pay vs. net pay
- Understanding the difference between gross pay and net pay is important for budgeting.
- annual gross pay
- His annual gross pay is $60,000.
- gross pay calculation
- The payroll department handles the gross pay calculation.
- gross pay before deductions
- Your gross pay before deductions is listed on your payslip.
Synonyms and how they differ
- gross income
- A broader term that can include income from all sources, not just wages.
- gross wages
- Very similar, but usually refers specifically to hourly or weekly earnings.
Opposites
Word family
Commonly confused: gross pay or net pay?
gross pay vs net pay
Net pay is the amount you actually receive after taxes and deductions, while gross pay is the full amount before anything is taken out.
Practice
If your gross pay is $3,000 and $600 is deducted for taxes, what is your net pay?
Choose one answer.
Net pay is gross pay minus deductions. $3,000 − $600 = $2,400.
Make it your own
Write a sentence using “gross pay”, then check it and compare it with the examples above.