All guides

Gross pay vs net pay explained

Gross pay is what you earn, net pay is what you're paid. Here's exactly what sits between the two on an Irish or UK payslip.

Gross pay is your total earnings for the period before anything is taken off. Net pay — sometimes called take-home pay — is the amount that actually reaches your bank account.

What sits in between

DeductionIrelandUnited Kingdom
Income taxPAYE (20% / 40%)PAYE (20% / 40% / 45%)
Social insurancePRSINational Insurance
Additional chargeUSC
PensionOccupational / PRSAAuto-enrolment

Why your net pay changes every week

If your hours vary, so does your gross — and because tax bands are cumulative, a heavy overtime week can push part of your pay into a higher band. The following quieter week often corrects itself. Comparing net pay week-to-week without comparing hours is the most common reason people think they've been underpaid.

The quick sanity check

Divide gross pay by hours worked to get your effective hourly rate, then do the same for net pay. If your gross rate is stable but your net rate has fallen sharply, look at the deduction lines rather than the total.

Common questions

Is gross pay the same as my salary?

Your annual salary divided by the number of pay periods gives your gross pay per period, before overtime, bonuses or deductions.

Does a pension contribution reduce my tax?

In most schemes contributions are deducted before income tax is calculated, so your taxable pay — and therefore your tax — is lower.

Check your own payslip

Upload the PDF your employer already sends you. MySalaryPal reads every line, balances the maths and flags anything that doesn't add up.

Try it free

Keep reading