In the world of work and business, it is important to be clear about the gross salary and the net salary for both the employer and the employee.
Gross salary
Gross wage is the total amount that is reflected in the employment contract before deductions or discounts are made. That is, it is the salary before deducting taxes and contributions. Includes the base salary, and other concepts such as overtime, bonuses, supplements, etc.
Net salary
Net salary is the amount of money that the employee receives in his pocket after deducting legal deductions such as Social Security, Income Tax Withholding ( Personal Income Tax), unemployment, vocational training or other deductions.
Therefore, the gross wage will always be higher than the net wage.
The gross wage shall be used as a reference for the calculation of severance payments, temporary incapacity, retirement pension, unemployment benefit.
Do not forget that no worker may be paid below the Minimum Wage established by the current law.
¿WHAT SALARY DO YOU HAVE IN COUNTRIES THAT DO NOT PAY TAXES OR ARE HARDLY PAID?
What salary do you have in countries that do not pay taxes or are hardly paid?
There are some countries that apply almost no income taxes or do not apply any what makes workers receive their gross salary without tax deductions, therefore their gross salary will be equal to their net salary.
These countries are very attractive to workers because it saves them more money while they are working in such countries.
If you are hiring private staff you can contact us at info@landsearecruitment.com
