Recently, many companies like to use different foreign words in their professional language. But for people who do not work in this organization, it is sometimes difficult to understand what these words mean. For example, an awkward situation arises when hiring, when the employer, when discussing working conditions, begins to manipulate words such as Gross and Net. A potential employee, not wanting to seem uneducated, as a rule, does not dare to clarify the meaning of these words and agrees to not quite acceptable conditions.
Therefore, every self-respecting working person is obliged to understand the meaning of the word Gross, what this means for him. Better yet, if you learn to calculate your net salary and know how much will be deducted on taxes monthly.
So, Gross - what is it? Gross, literally translated from English, means something complete. In the business world, this word means the amount that the employee will receive on paper.
Then Gross salary - what is it? And this is the amount of wages that is indicated when applying for a job in an employment contract.
It is important to understand that taxes will be deducted from the amount of Gross, and in the end it will turn out to be much less.
What is Net
Net is the exact opposite of the value of Gross, which means, let's figure it out. It turns out that Net is the amount that the hired employee will receive each month, and Gross is only those numbers that exist only on paper, and various deductions are made from them.
How to calculate Net
What does Gross mean, sorted out. Now you can calculate how much the amount of net earnings will be. Of the total wages, income tax is withheld, which is on average 13 percent. That is, in order to understand exactly how much you will get into your hands, you need to minus 13 percent of the total.
It is important to understand that you can easily calculate how much you will get on your own if you know what Ggross's salary is. That this can be done is understandable even without accounting education. The amount of salary without taxes is usually prescribed in the employment contract.
How to calculate gross
Gross salary - what does it mean? Now we know that. How to calculate your net net salary is now also clear. But there are cases when the contract does not specify the amount of Gross, but only a certain percentage or, in general, the field remains empty. In such cases, you need to wait for your first salary, and you can independently calculate the amount of Gross.
What is it for? It’s just that sometimes wages can change from month to month, and if you want to know how much tax you are withheld on a monthly basis, you can calculate the amount of Gross.
This is done very simply. To do this, the amount received on hand is divided by the number 0.87.
Everything changes, new words constantly appear in the business world. Most of the previously unknowns can be quickly remembered directly in the process of work, but to understand the meaning of the words Net and Gross, what it is, you need to even before entering a new job.
When looking for a new job, it is worth remembering that usually in job advertisements, the total amount of wages is indicated, without taxes.
