Net Pay
/ˌnɛt ˈpeɪ/
Definitions
- (n.) The amount of money an employee takes home after all deductions such as taxes and benefits.
Her net pay increased after the company raised the salary.
- (n.) The final amount payable to a party after all applicable deductions in financial or contractual settlements.
The contractor received the net pay after all expenses were deducted.
Forms
- net pay
Related terms
See also
Commentary
Net pay is often contrasted with gross pay; precise deduction laws vary by jurisdiction, necessitating clear specification in contracts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.