What is the difference between gross salary and net salary?

What is meant by Gross Salary? Gross salary is the monthly or yearly salary of an individual before any deductions are made from it . Components such as basic salary, house rent allowance, provident fund, leave travel allowance, medical allowance, Professional Tax etc.

For hourly employees, gross wages can be calculated by multiplying the number of hours worked by the employee’s hourly wage . For example, an employee that works part-time at 25 hours per week and receives a wage of $12 per hour would have a gross weekly pay of $300 (25×12=300).

Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.