In personal finance, the portion of a paycheck left after taxes and other deductions is called net pay.
An employer starts with gross pay, the amount earned before deductions. Payroll taxes, income-tax withholding, retirement contributions, health-insurance premiums, and other authorized deductions may then be subtracted. The remaining amount is the employee’s net pay, often called take-home pay.
Net pay is the figure that actually reaches a bank account or appears on a paper paycheck, but it is not always the same as disposable income. A person may still have recurring bills, debt payments, and other expenses after receiving it. Paycheck deductions also vary by country, employer, benefits choices, tax status, and pay period, so two workers with the same gross salary can receive different net amounts.