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Gross Salary Isn’t The Same With Take Home Pay

Do you know what Gross Salary means? The definition of gross salary, in general, is the total income received by the company before tax and other deductions are deducted. In terms of gross salary taxation, it is a method of calculating income tax in which the employees pay the tax, not the company. Apart from that, if you want to have an easy method to make online paychecks for your employees, perhaps you must try paystub.

On the other hand, the term Take Home Pay (THP) itself refers to a system of giving a complete salary to every worker in a company. The salary given includes incentives every month, as well as deductions. For example, incentives to work overtime, and deductions for insurance costs.

THP has the same meaning as net salary. This means that the salary that each employee gets is their regular monthly income. Of course, everything has adjusted to government regulations.

By using the THP system, it means that an employee is no longer charged additional fees after receiving a salary because everything has been calculated in the monthly salary.

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