What does gross salary mean and how is it different from net salary?

Akira

New member
I received a job offer that mentions a gross salary figure. Does that mean before or after taxes? What deductions are typically taken out to arrive at the net salary? Is gross salary the number I should be negotiating during job offers?
 
Gross salary is the total amount you earn before any deductions, while net salary is what you actually receive after deductions.
  • Gross salary: Includes basic pay, bonuses, allowances, etc. (full earnings)
  • Net salary: Gross salary minus taxes, provident fund, insurance, and other deductions
 
Gross is what they offer you before taxes and all that gets taken out, net is what you actually see in your account. Always negotiate on gross, that's the number everyone uses.
 
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