Gross pay

Gross pay is the initial salary or wages that an employee earns. This figure doesn't include any deductions such as income tax, salary-sacrificed superannuation, or health insurance contributions. For instance, if an employee's salary is $50,000 per year, that's their gross pay. After deductions, what they actually take home (net pay) will be less.

Gross pay, net pay and pay slips

Gross pay includes ordinary wages, overtime, penalty rates, allowances, loadings and bonuses for the pay period, before PAYG tax and any other deductions. Superannuation guarantee contributions are paid by the employer on top of wages and are not taken out of gross pay. Pay slips must show both the gross and net amounts. For example, an employee who earns $1,500 gross in a week and has $250 tax withheld receives $1,250 net, and their employer pays super on their qualifying earnings separately.

See pay slip, or book an HR compliance audit to check your payroll.