Your gross wage is a different amount than what you receive in your bank account. What will be factored in with the gross wage?
- Payroll tax
- National insurance premiums
- Pension contribution (in case of accrual Plus pension, the employee part is 1/3 of the total premium)
- Gross and net deductions
- Gross and net compensations
Deductions and settlements for example for a parking fine or deposit for a clocking-in card take will be specified on your payslip. Deductions and settlements are only deducted from the salary exceeding the legal minimum salary. This means that sometimes the full amount cannot be deducted and the outstanding amount will be carried over to the next payment until the full amount has been deducted or settled.
The salary that you actually receive on your bank account is called the net wage.