definition

Gross salary: Definition

Gross salary is the remuneration you earn before any deductions. This amount is calculated based on your number of hours worked and your hourly rate.

What you need to know about gross salary

Its calculation includes your base salary as well as any other amounts you may receive, such as bonuses or commissions. The gross salary is before any tax deduction or social security contributions. In order to calculate it, you must add the basic salary with the other amounts received. Then, we apply the withholding tax rate which varies according to taxable income and the number of family quotient shares.

It is crucial to understand that gross salary does not represent the amount you actually receive in your bank account. Indeed, it is necessary to deduct taxes and social security contributions, which are deducted at source from the gross salary. The amount you actually receive is therefore called net salary. Gross salary is an important concept to know, because it is the base amount on which taxes and social security contributions are calculated. It is therefore important to know it well in order to know what to expect when you receive your salary.

Calculation of gross salary

The gross salary is the amount that the employer pays to its employee before any deductions. It generally includes the various bonuses and allowances to which the employee is entitled. Gross salary can be calculated in different ways depending on collective agreements. The calculation of the gross salary is very important because it makes it possible to determine the amount of social security contributions and income taxes which will be deducted from the net salary. It is therefore important to know it well in order to correctly prepare your pay slip. To calculate gross salary, different elements must be taken into account:
– the number of hours worked by the employee
– the hourly rate
– the various bonuses and allowances to which he is entitled.

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Gross salary is generally calculated based on the number of hours worked by the employee. The hourly rate is the amount that the employer pays the employee for one hour of work. The hourly rate is generally set by collective agreement. Bonuses and allowances are sums that the employer pays to the employee in addition to their hourly salary. They can be paid for different reasons:
– a performance bonus
– a travel bonus
– night work allowance.