Net Salary

## Net Salary

Net salary, also called take-home pay, is the amount deposited into an employee's bank account on payday. It equals gross salary minus all mandatory and voluntary deductions.

### Why It Matters

Net salary is what employees actually spend, save, and budget around. Two people with identical gross salaries can have very different net salaries depending on their tax bracket, benefits elections, and country of residence.

### How It's Calculated

```
Net Salary = Gross Salary − Income Tax − Social Security − Health Insurance − Pension − Other Deductions
```

### Regional Variations

- **US**: Net pay after federal income tax, state tax, FICA (Social Security + Medicare), and any 401(k) contributions.
- **UK**: Net pay after PAYE, National Insurance (employee share), student loan repayments, and pension.
- **France**: Salaire net after CSG/CRDS, retirement contributions, and unemployment insurance.
- **UAE/Saudi Arabia**: Net ≈ Gross for most expatriates since there is no personal income tax.

### Example

A single filer in the US earning $80,000 gross might pay roughly $12,000 in federal tax, $4,000 in state tax, and $6,100 in FICA, leaving a net salary of about $57,900 before any voluntary deductions like 401(k) or health insurance premiums.