Gross pay is everything you earned in a pay period before any deducations are taken out, including wages, salary, overtime, and commissions. It is the number on an offer letter or hourly rate multiplied by hours. It is not the amount that lands in your account.

When preparing you monthly budget base all your calculations on your net pay, not gross pay.

Related Lessons:

• Click Here for our lesson on Payroll Best Practices
• Click Here for our lesson on What’s Included In Your Compensation Package?
• Click Here for our lesson on How Canadian Taxes Impact Your Personal Finances