Are you filling out an application, comparing jobs, or wondering how much you’ll actually take home from a gig? The difference between gross and net pay confuses many people, even though it’s actually quite simple.
When negotiating your salary: the discussion usually revolves around the gross amount
When you see a salary listed in a job posting or negotiate a salary for a job, it is almost always a gross salary.
Gross pay refers to the total amount of pay before taxes and other deductions. It is the base amount from which the final net pay is calculated.
In other words: your gross pay is not the amount that is deposited directly into your account.
When your paycheck is deposited into your account: this is your take-home pay
Your net pay is the amount you'll see in your account on payday.
It’s the pay you receive after mandatory deductions and payments have been taken out. This money is at your disposal.
When you pay through Truster, you don't have to worry about paying taxes or fees yourself—we take care of it for you.
What is deducted from gross pay?
The following items, for example, may be deducted from gross pay:
1. Withholding tax
Based on your personal tax rate.
2. Statutory payments
For example, health insurance premiums, as well as, depending on the situation, any YEL insurance premiums.
3. Service fee
If you have a percentage-based subscription, the service fee will be deducted when your salary is paid. In addition to the service fee, you will be charged for Truster and Maksuvahti.
How much of your salary will you have left?
Your exact take-home pay always depends on your individual circumstances, for example:
- tax rate
- any insurance premiums
- the service currently in use
That is why the same gross salary can result in different net amounts for different people. If you wish, you can estimate the amount that will be deposited into your account in advance by using our salary calculator.
Breakdown of deductions on the pay stub
Once your pay has been processed, you can view the deductions on your pay stub. You can find the calculations in the app under " Pay."
Be sure to update your tax rate
Keep your tax card up to date in the OmaVero service. If your income increases more than expected, updating your tax rate in a timely manner can help you avoid having to pay back taxes later.
You do not need to send us your tax card unless we specifically ask for it. We receive tax cards automatically from the Tax Administration. If the retrieval fails for any reason, we will contact you separately via the "Support Requests" section before paying your salary.