Gross salary is the total amount on the payroll, which includes all taxes, insurance and deductions from the employee's remuneration. The salaries of people who receive a gross salary decrease towards the end of the year. The reason for this is the increase in the taxes deducted due to the increase in the total income towards the end of the year.
What are the Differences Between Gross and Net Salary?
We can list the differences between gross salary and net salary as follows;
- Gross salary is always more than net salary.
- Gross salary is a salary that includes all taxes.
- Net salary is the remaining salary after tax deductions.
- Gross salary is the salary determined before starting a job.
- The net salary is determined over the gross salary.
- The gross salary during the year may vary depending on the deductions.
- As long as there is no increase in the net salary, there will be no change in the gross salary.
What Deductions Are Included in Gross Salary?
Various tax deductions are included in the gross salary. The income tax included in the gross salary is counted as the tax paid by the employees to the government on their monthly earnings. Income tax, which is the deductions made from the gross salary in the payroll, is calculated by taking into account various factors. While calculating the income tax base, unemployment insurance, worker's share and SGK premiums, which are other deductions made in the gross salaries of the working people, are subtracted. Other deductions included in the gross salary are divided into stamp tax, SGK premiums and unemployment premiums. For this reason, the Gross salary can vary due to various factors.
How is Gross Salary Calculated?
How to Calculate Gross Salary 2022 When calculating gross salary, taxes withheld must be collected. We can list the deducted taxes as follows;
- SSI premium
- unemployment premium
- income tax
- stamp duty
The gross salary calculation is as follows;
Gross salary = net salary + SSI premium + unemployment premium + income tax + stamp tax