# What is the difference between gross pay and net pay

Posted By Admin @ September 03, 2022

#### Question:

What is the relationship between gross pay and net pay?

Gross pay and net pay are terms given to your pay before and after deductions. Let’s say you make \$10 an hour and worked for 10 hours for 1 week. Your gross pay would be \$100. After taxes, deductions for insurance, retirement/401K, etc., let’s say what you had left was \$65. What that means is that \$65 would be your net pay. “Net pay” is sometimes called “take home pay” because it’s what is left for you after all the necessary subtractions.

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