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Net salary
What is Net Salary?
Net salary is the amount of money received after taxes and other mandatory deductions have been subtracted from gross salary.
How is Net Salary Calculated?
The calculation of net salary can vary depending on the country and corresponding tax legislation. Typically, it is calculated by subtracting mandatory deductions from gross salary. These deductions may include federal, state, and local taxes, as well as contributions to social security, health insurance, and retirement plans, among others.
To calculate your net salary, you can use online calculators or consult with a tax professional if you have specific questions about your financial situation.
Differences Between Gross and Net Salary:
Gross Salary
Gross salary is the total salary agreed upon with your employer before any deductions. It is the money detailed in your employment contract or labor agreement, before taxes or other deductions are applied.
Net Salary
Net salary is the amount of money you actually receive after taxes and other mandatory deductions are taken from your gross salary.
Differences Between Salary and Wages:
Wages are the compensation an employee receives for their work, and it can be paid on a monthly, weekly, or yearly basis. This term is generally used for employees who are paid by the hour or by the unit of work performed. For example, a construction worker or a waiter earning an hourly wage.
Salary, on the other hand, is a form of payment that is given on a fixed and regular basis, usually in monthly payments. It is the payment set for a specified period of time.
In Summary:
Taxes and deductions: The main difference between gross salary and net salary is taxes and other mandatory deductions.
Actual amount received: Gross salary is the agreed-upon amount, but net salary is the actual amount you receive.
https://es.wikipedia.org/wiki/Salario
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