Gross vs. Net income

An individual's gross income is the total amount of money that they earn before it is subject to taxation. Their net income is the money they are left with after they have been taxed. Usually, though this depends on the country, regional authority, etc, taxes levied against income are income tax, social security, and healthcare charges.

In some countries, particularly in Central and Eastern Europe, employees negotiate a pure net income salary whereby the company they work for pays all their individual taxes on their behalf. In other countries, the state taxes the money owed out of an employee’s monthly salary or wages directly. Different conditions apply to self-employed workers.

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