Gross Pay
The total amount of money an employee earns before any deductions such as taxes, insurance premiums, retirement contributions, and other withholdings are applied.
Examples
- Annual salary of $60,000 before deductions
- Hourly rate multiplied by hours worked including overtime
- Base pay plus commissions and bonuses
- Calculating gross-to-net pay differences
Related Terms
The amount of money an employee takes home after all deductions — including federal and state taxes, Social Security, health insurance, and retirement contributions — are subtracted from gross pay.
Hours worked beyond the standard workweek (typically 40 hours in the US), which must be compensated at a premium rate — usually 1.5 times the regular hourly rate — under the Fair Labor Standards Act (FLSA).
The total combination of pay and benefits an employer offers to an employee, including base salary, bonuses, equity, health insurance, retirement contributions, and non-monetary perks.
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