What is the term for the amount of pay after deductions?

Net pay refers to the amount of compensation an employee receives after all deductions have been taken from their gross pay. These deductions can include taxes, retirement contributions, insurance premiums, and other withholdings. By focusing on net pay, it reflects the actual amount that employees take home in their paychecks, providing a real understanding of their financial compensation.

While the terms gross pay, take-home pay, and base pay are related to employee compensation, they do not denote the same concept. Gross pay represents the total earnings before any deductions are made, while base pay typically refers to an employee's initial salary or hourly wage without bonuses or additional compensation. Take-home pay can be synonymous with net pay but is often used in informal contexts. Thus, net pay is the technically precise term for what an employee ultimately receives after all deductions.