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What is gross salary? 

Glossary definition

What is gross salary? 

Gross salary definition 

Gross salary is an individual’s total earnings throughout a given period before any deductions are made.  

How to calculate gross salary? 

Gross salary is simple to determine. Just plug your numbers into the gross salary formula: 

Gross salary = net pay + taxes and deductions 

How to calculate gross pay for salary employees 

For an hourly paid employee, your monthly gross salary is calculated as follows, because tax and deductions are withheld before pay is received: 

Gross pay = agreed hourly rate x number of hours worked in the given period 

Gross salary versus net salary 

The gross salary definition differs from that of net pay since it does not indicate the take-home salary of an individual. 

Gross salary deductions  

Deductions such as taxes, medical contributions or retirement funds are not accounted for when gross pay is calculated. 

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