Gross Salary
Gross salary is the amount an employee receives before taxes and mandatory contributions are deducted.
It is the starting point for calculating net salary — the amount that the employee ultimately receives "in hand".
What gross salary means
When an employer states a salary in a job vacancy or includes it in an employment contract, it usually refers to the gross amount.
It represents the full cost of the employee's work for the company: it includes base pay, bonuses and other payments before taxes.
It does not yet include:
- income tax,
- social security contributions,
- possible deductions required by law.
Therefore, the actual payout is always lower than the gross amount, and the difference can be significant.
Where the term "gross" is used
The term is used in:
- employment contracts — to clearly specify the calculated amount;
- HR and accounting documents — when calculating the payroll fund;
- job vacancies — to compare offers between companies;
- salary calculations — when converting from gross to net.
Employers use gross salary to show the total cost of hiring an employee.
Calculation example
For example, an employment contract states: gross salary 1000 EUR per month.
After taxes and contributions are deducted, the employee receives a net salary of around 750-800 EUR, depending on tax rates, allowances and individual conditions.
This means the contract shows 1000 EUR, but the employee actually receives about 20-25% less.
Quick gross → net calculation
To avoid calculating deductions manually, you can use the salary calculator on this website. It will automatically show how much money remains after all taxes and help compare different income scenarios.