Net Income Definition
Summary
Net income refers to the amount of income remaining after mandatory deductions, such as income tax and employee social contributions, have been applied to gross income. In employment contexts, net income represents the amount actually paid to the individual and available for personal use.
Main explanation
What is net income
- calculated after tax and contributions
- represents take‑home pay
- received by the individual
Net income in employment
- paid at regular intervals
- after statutory deductions
- based on payroll systems
Net income and deductions
- income tax
- employee contributions
- other statutory deductions
Net income in comparisons
- compare take‑home pay
- assess disposable income
- illustrate tax systems
Relationship to other income concepts
- gross income
- taxable income
- total employment cost
What this page does not cover
- country-specific rules
- eligibility conditions
- household structure
- non‑employment income
- reporting rules
References