Gross vs Net Salary

Gross salary

The full amount in your contract or job offer, before anything is taken out. This is the number recruiters quote.

Net salary

What actually arrives in your bank account after tax and deductions. This is the number your budget lives on.

Gross salaryNet salary
Also calledPre-tax pay, base salaryTake-home pay, after-tax pay
What is deducted between themIncome tax, social security / national insurance, pension contributions, health premiums
Typical gapCommonly 20–35% lower than gross, depending on country and income
Used forJob offers, raises, salary comparisonsBudgeting, rent affordability, loan applications

The bottom line

Always negotiate in gross but budget in net. When comparing job offers across countries or contract types, convert both to net first — a higher gross can easily be a lower take-home.