What is take-home pay?
Definition of take-home pay
Take-home pay is the amount received after tax, insurance and other deductions have been removed from an employee’s gross monthly salary. It is also known as net pay or net salary.
How much take-home pay should you receive?
Take-home pay is influenced by a variety of factors, including:
- Income Tax
- National Insurance
- Personal Allowance
- student loan repayments
- pension contributions
- benefits such as childcare vouchers
For a definitive overview of your deductions and take-home pay, you should check your tax code and contact the tax office.
Got questions? Ask Emily!
FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.