Guide to your salary calculations

  • Gross income - The total salary / wage / pay before any deductions or taxes.
  • Income tax - A tax on an employee for being employed. Collected through PAYE by the employer.
  • National insurance - A contribution an employee makes for certain benefits including the state pension. Collected through PAYE by the employer.
  • PAYE (Pay As You Earn) - A process by which HMRC collects employee taxes directly from the employer.
  • Net pay - Also known as net salary or net income. This is the take home pay received after any deductions or taxes have been subtracted from Gross income.