Net pay is the amount an employee takes home after all deductions have been made from their gross pay.
Common deductions include taxes (such as PAYG), superannuation contributions, and benefits like health insurance.
For example, if an employee's gross pay is $55,000, but $10,000 is deducted for taxes and superannuation throughout the year, their net pay would be $45,000.
Understanding net pay is important for employees when budgeting their finances and assessing their overall compensation.
