Salary "no" and "Gross" - this is what? Example calculation

In recent years, Russian enterprises are introducing into their professional jargon more and more foreign terms, which may be incomprehensible to the common man in the street. In particular, at an interview, the employer may use the word "Gross" in connection with the discussion of wages. This leads to the fact that the candidate for the vacant position does not specify the meaning of this term, so as not to appear uneducated, and after employment will not receive the amount that was discussed at the interview. To avoid such situations, it is necessary to know and understand the meaning of this newfangled word.

Origin and meaning of the word "Gross"

As an economic concept, the word "Gross" was first used in England in the 16th century. This term denoted the total profit, which was contrasted with the net profit.

The term "Gross" appeared in the eighteenth century in Germany. Then he meant:

• Counting unit, denoting 12 dozen.
• Great, great.
• Prefix to form complex words with the meaning of "main", "supreme".

Until now, the origin of this word remains incomprehensible.

In the Russian economic vocabulary this term is replaced by a more understandable word "gross". It indicates the total profit before taxes are deducted from it.

Gross-salary is what?

In Russia, one of the most important moments in the employment is the amount of wages. There are concepts of "black" and "white" wages. In order to attract the maximum number of candidates for vacant positions, employers often in advertisements indicate a larger salary. The so-called "gross" salary is a term used by accountants. The employer stakes on the fact that the applicant is not familiar with this concept.

"Gross", or "black" wages, is the amount without deduction of income tax. The employer can specify it in labor contracts, and in fact the newly-made employee will receive a lower salary. This point needs to be discussed during the interview.

What is net salary?

Net is the salary that an employee receives each month on his hands or on a bank card. Still it is called a white salary, since this amount remains after deductions of taxes and insurance premiums.

Gross and net: calculation example

Now we have figured out that "gross" is the amount of wages that exists formally. How can you calculate the size of the "white" salary, if you know "black"?

From the "black" wages, tax on personal income is always withheld. In Russia it is 13%. In other words, to understand how much you will get in your hands, you need to deduct 13% of your gross salary. For example, if the "gross" in the employment contract indicates 100,000 rubles, then the employee will receive 87,000 rubles in the hands.

Often there are situations when the employer does not specify the amount of labor payment in the employment contract. In this case, each month the amount can come in different. If you need to know exactly what tax is withheld from the salary in this case, you can calculate the "Gross". To do this, the amount received after the fact is divided by the number 0.87.

In the economic vocabulary, more and more unfamiliar foreign terms constantly appear. You can get acquainted with them in the process of work. But the words "no" and "Gross" are such terms, the meaning of which must be known and understood before employment. In order to attract as many job seekers as possible, employers in the announcement can indicate a "gross" salary without tax and insurance deductions. This trick is designed for people who do not understand the meaning of this term and therefore will not clarify it. This delicate moment should be discussed with the employer during the interview.