## What is gross pay
Gross pay is your total earnings before any deductions. It includes:
- Basic salary
- Overtime
- Bonuses and commission
- Sunday and public holiday premiums
- Notional pay for benefits in kind (such as a company car)
- Allowances that count as taxable pay
## What is net pay
Net pay is what arrives in your bank account after all statutory and voluntary deductions are made. The deductions in 2026 are:
- PAYE (income tax)
- USC
- PRSI
- Pension or AVC (if any)
- LPT deduction at source (if applicable)
- Other voluntary deductions (union, savings, etc.)
## Worked example, single employee €40,000
Saoirse earns €40,000 per year, single, no pension contribution.
| Item | Annual amount |
| --- | --- |
| Gross pay | €40,000 |
| PAYE | €4,000 |
| USC | €812.18 |
| PRSI | €1,640 (rate weighted across year) |
| Net pay | €33,547.82 |
Approximate take home: €2,795 per month.
## Worked example, married couple €70,000 + €0
Joint assessment, single income.
| Item | Annual amount |
| --- | --- |
| Gross pay | €70,000 |
| PAYE | €5,450 (with Home Carer Credit) |
| USC | €1,712 |
| PRSI | €2,870 |
| Net pay | €59,968 |
## Worked example, higher earner €100,000
Single PAYE worker.
| Item | Annual amount |
| --- | --- |
| Gross pay | €100,000 |
| PAYE | €27,200 |
| USC | €4,470 |
| PRSI | €4,100 |
| Net pay | €64,230 |
## The marginal rate concept
For higher earners the next euro of gross pay is reduced by:
- Income tax: 40 percent
- USC: 8 percent
- PRSI: 4.1 to 4.2 percent
Combined marginal rate: roughly 52 percent.
## Why net pay calculators help
Online net pay calculators take gross pay, marital status, age, and other inputs to estimate take home accurately. Always check estimates against your actual payslip and Revenue myAccount.
## Common reasons net pay differs from expectation
- Emergency tax applied
- Wrong RPN for the year
- BIK adjustment (e.g. company car)
- Pension contribution starting mid year
- Cumulative correction after a credit change
## Educational notice
This article is general guidance. Personal tax outcomes vary. Always verify with Revenue.ie or a qualified tax adviser.