Definition of Net Salary 2017

The meaning of Net Salary is the amount that is left over from an employee’s salary once specific deductions have been made. In the UK, these deductions include tax contributions and national insurance contributions. Additional deductions might include retirement contributions.  This is in contrast to the term “Gross Salary”, which is the total amount an employee earns per month. Both of these amounts are reflected on a pay slip, along with an outline of the deductions made for that month. The percentage of a person’s pay that goes towards taxes and national insurance contributions depends on a variety of factors, including how much a person earns per month.