Gross pay vs net pay
Gross pay is what you earn before deductions. Net pay is what actually reaches your bank account.
- Written by
- Money Made Clear
- Type
- General information
- Sources
- Revenue
- Last checked
- 28 May 2026
- Not advice
- General information only
General information only, based on official public sources. Not financial, tax, legal or welfare advice.
The difference at a glance
| Term | Meaning |
|---|---|
| Gross pay | Your pay before tax and deductions. It can include salary, wages, overtime, bonus, commission and taxable benefits. |
| Taxable pay | Gross pay after certain allowable deductions, such as approved pension contributions, are taken off before income tax is calculated. |
| Net pay | The amount left after deductions. This is your take-home pay. |
Source: Revenue — Gross pay and taxable pay
Why taxable pay can be different from gross pay
Revenue says taxable pay is gross pay less certain contributions, such as contributions to a Revenue approved pension scheme, PRSA, RAC, approved income continuance scheme or salary sacrifice arrangement.
That means your income tax may be calculated on a figure that is lower than your full gross pay.
Simple example
| Line | Amount | Meaning |
|---|---|---|
| Gross pay | €3,000 | Pay before deductions. |
| Pension contribution | -€150 | May reduce taxable pay for income tax purposes. |
| PAYE, USC and PRSI | -€500 | Payroll deductions. |
| Net pay | €2,350 | Amount paid to your bank. |
Illustrative example only. Your own deductions depend on your income, tax credits, USC bands, PRSI class and pension setup.
Where payslip figures can be checked
Check that your gross pay matches your expected salary or hours, that deductions are listed clearly, and that net pay matches what arrives in your bank account.
Source: Workplace Relations Commission — Payslips
What this means in real life
For an employee, gross pay is the starting figure on the payslip, not the amount expected in the bank account. PAYE, USC, PRSI, pension contributions and other authorised deductions can reduce it to net pay. A salary increase can therefore raise gross pay without producing the same increase in take-home pay, because some of the additional earnings may be taxed or subject to contributions. Taxable pay can also differ from gross pay where particular payroll items receive different treatment. When comparing a job offer or checking a payslip, the annual or hourly gross figure and the net payment answer different questions. The payslip guide explains the main lines, while PAYE, USC and PRSI are covered separately.
Related guides
Official sources
For current rules, rates and eligibility, check the relevant official public source.