What is the amount paid after deductions called?

What is the amount paid after deductions called?

• A. Gross Pay
• B. Wage
• C. Net Pay
• D. Salary

Answer: (C)

This question tests understanding of what “take-home” pay is. The amount paid after deductions is net pay—the money you actually receive after deductions like income tax, National Insurance, and any pension or loan repayments have been subtracted. Gross pay is the total amount earned before any deductions, so it isn’t the amount you take home. Wages and salary describe how pay is arranged or earned, but not specifically the amount left after deductions. For example, you might have gross pay of £2,000, deductions of £400, and net pay of £1,600.

This question tests understanding of what “take-home” pay is. The amount paid after deductions is net pay—the money you actually receive after deductions like income tax, National Insurance, and any pension or loan repayments have been subtracted. Gross pay is the total amount earned before any deductions, so it isn’t the amount you take home. Wages and salary describe how pay is arranged or earned, but not specifically the amount left after deductions. For example, you might have gross pay of £2,000, deductions of £400, and net pay of £1,600.