Gross Income Definition
Summary
Gross income refers to the total amount of income earned before any taxes, social contributions, or other deductions are applied. In employment contexts, gross income forms the starting point for calculating tax liabilities, social‑security contributions, and net income. The precise definition and scope of gross income are determined by national law.
Main explanation
What is gross income
Gross income is the total income received or accrued by an individual before mandatory deductions.
- includes earnings from employment or self‑employment
- is defined by tax and social‑security legislation
- serves as the base for calculating taxes and contributions
Gross income does not represent the amount available for personal use after deductions.
Gross income in employment
- base salary or wages
- contractual bonuses or allowances
- other remuneration defined as taxable income under law
Gross income and deductions
- personal income tax
- employee social‑security contributions
- other statutory withholdings defined by law
Gross income in comparisons
- comparing wage levels across countries
- analysing labour‑market pricing
- assessing contractual remuneration
Relationship to other income concepts
- net income
- taxable income
- total employment cost
What this page does not cover
- country‑specific definitions
- treatment of specific income types
- tax allowances or exemptions
- non‑employment income
- reporting requirements
References