Net Pay

What is Net Pay?

Net pay is the gross pay which a person earns less taxes and other deductions such as pension contributions. It is the amount of pay which a person gets to keep.

The net-pay formula can be stated as follows:

Net pay = Gross pay – Taxes – Deductions

For further information on net-payroll see our payroll tutorials.

Also for additional information on net-pay see the Wikipedia definition.

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Last modified March 23rd, 2016 by Team

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