Gross vs net pay: what's the difference?
Gross is what you're offered; net is what lands in your account. What sits between the two, and why.
Last updated 3 November 2026
Your job offer says one number. Your bank account shows a smaller one. The gap between them is the difference between gross pay and net pay — and knowing what sits in between helps you read a payslip, compare offers and budget properly.
Gross pay: before deductions
Gross pay is your total earnings before anything is taken out — the salary in your contract or the hourly rate times your hours. It’s the headline figure, and it’s what tax and most deductions are calculated from.
Net pay: what you actually get
Net pay — your take-home pay — is what remains after deductions hit your bank account. For the same gross salary, your net can differ depending on your HELP debt, salary sacrifice and offsets.
What sits between the two
- PAYG income tax — withheld each pay based on the tax brackets.
- Medicare levy — generally 2% of taxable income.
- HELP/HECS repayment — if your income is over the threshold ($69,528 in 2026–27).
- Salary sacrifice — e.g. extra super, taken from pre-tax pay (lowers your tax too).
- Sometimes union fees or other agreed deductions.
One thing that’s not deducted: your compulsory employer super. The 12% guarantee is paid on top of your gross wage into your super fund, not taken out of your pay (unless your salary is a “package including super”).
A quick example
On a $80,000 gross salary in 2026–27, roughly $14,520 income tax and $1,600 Medicare levy come out, leaving net pay of about $63,880 a year — before any HELP debt. That’s about $5,323 a month in your account, from a $6,667 gross monthly figure.
Why it matters when comparing jobs
Always compare roles on a like-for-like basis: gross vs gross, and check whether super is on top or included (they can differ by about 12%). A higher gross with a big HELP debt or no salary packaging might leave you with less net than a lower gross structured well.
Turn any gross salary into your exact net take-home — tax, Medicare, HELP and super included — with our salary calculator. To get a gross annual figure from an hourly or weekly rate first, use the hourly to annual calculator.
Work out your own numbers
Frequently asked questions
What is the difference between gross and net pay?
Gross pay is your total salary or wage before any deductions — the figure in your contract. Net pay is what actually lands in your bank account after income tax, the Medicare levy and any other deductions like HELP repayments are taken out. Net pay is often called take-home pay.
What is deducted from gross to get net pay?
Mainly PAYG income tax and the 2% Medicare levy. You may also have a HELP/HECS repayment if you earn over the threshold, salary-sacrifice amounts (like extra super), and sometimes union fees or other agreed deductions. Compulsory employer super is paid on top and isn't deducted from your pay.
Is super included in gross pay?
Usually not. Your gross salary is typically your cash wage, and the employer pays the 12% super guarantee on top of it. If an offer is a 'package including super', then the gross figure already contains super and your cash salary is lower.
How do I work out my net pay from my gross salary?
Subtract income tax, the Medicare levy and any HELP repayment from your gross salary. The quickest way is a take-home pay calculator that applies the current tax brackets, the Medicare levy, the low income tax offset and HELP automatically.