Gross salary

Gross salary is the aggregate amount of fixed wages earned by a person over a specific period of time. Thus, one might refer to gross salary per week, month, or year. The most common usage of the term is gross salary earned over a year. Management and some administrative employees are typically paid salaries, while hourly personnel are paid wages. This amount is prior to the application of taxes and other deductions, which results in net salary, and which may be a substantially smaller amount.

Gross salary is requested during credit checks, and is used by lenders and creditors to set a credit limit for an individual.

Related Courses

Human Resources Guidebook 
Optimal Accounting for Payroll
Payroll Management