HR Glossary
Net Pay

Net Pay

Updated on:
August 22, 2022


Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

green check mark symbol
Fact Checked

Content is reviewed to provide accurate, clear, and reliable information. Learn about our editorial process

Table of Content

What is Net Pay?

Net pay is the amount of money an employer gives to an employee after taxes and other deductions have been taken out. In other words, net pay is the amount of money left after deductions have been made.

Issues that impact net pay include voluntary deductions, such as healthcare premiums, retirement fund contributions, and HSA contributions, and involuntary deductions, such as federal and state income taxes, Medicare and Social Security taxes, and wage garnishments. 

Net pay is the difference between gross pay and taxes, health insurance, and other benefits.