What is gross pay?

Gross pay refers to the total earnings an employee receives from their employer before any deductions are made. This includes salaries, hourly wages, overtime pay, bonuses, and commissions. Gross pay is generally what is stated in an employee's employment contract or offer letter and is typically used to calculate other forms of compensation such as benefits, taxes, and retirement contributions. It does not reflect the amount of money an employee takes home after deductions for taxes, insurance, and other purposes are made.