In recent years, Russian enterprises have been introducing more and more foreign terms into their professional jargon, which may not be understandable to ordinary people. In particular, at the interview, the employer may use the word “gross” as applied to the discussion of wages. This leads to the fact that the candidate for the vacant position does not clarify the meaning of this term so as not to seem uneducated, and after employment will receive the wrong amount that was discussed at the interview. To avoid such situations, it is necessary to know and understand the meaning of this new-fangled word.
The origin and meaning of the word "gross"
As an economic concept, the word "gross" began to be used back in the 16th century in England. This term denoted the total profit, which was opposed to net.
The term “gross” appeared in the 18th century in Germany. Then he meant:
- The unit of account for 12 dozen.
- Huge, big.
- A prefix to form complex words with the meaning of "main", "higher".
The origin of this word is still unclear.
In Russian economic vocabulary, this term is replaced by the more understandable word "gross". It denotes the total profit before tax from it.
Gross salary is what?
In Russia, one of the most important moments when applying for a job is the amount of wages. There are concepts of “black” and “white” wages. In order to attract the maximum number of candidates for vacant positions, employers often indicate a higher salary in advertisements. The so-called “gross” salary is a term used by accountants. The employer relies on the fact that the applicant is not familiar with this concept.
“Gross,” or “black” wages, is the sum without deducting income tax. The employer can indicate it in labor contracts, and in fact the newly made employee will receive a lower salary. This moment needs to be discussed during the interview.
What is salary net?
Net - this is the salary that the employee receives every month actually on hand or on a bank card. It is also called a white salary, since it is this amount that remains after tax deductions and insurance premiums.
Gross and net: calculation example
Now we have figured out that "gross" is the amount of wages that exists formally. How can one calculate the size of the “white” salary if the “black” one is known?
From the "black" wage is always withheld the tax on personal income. In Russia, it is 13%. In other words, to understand how much you will get on hand, you need to deduct 13% of the gross salary. For example, if the “gross” in the labor contract indicates 100,000 rubles, then the employee will receive 87,000 in his hands.
Often there are situations when the employer does not indicate the amount of wages in the employment contract. Moreover, each month the amount may come in different. If you need to know exactly what tax is withheld from the salary in this case, you can calculate the "gross". To do this, divide the actual amount received by the number 0.87.
More and more unfamiliar foreign terms are constantly appearing in the economic vocabulary. You can get acquainted with them in the process of work. But the words “no” and “gross” are such terms, the meaning of which must be known and understood before employment. In order to attract as many job seekers as possible, employers in the announcement can indicate the gross salary without tax and insurance deductions. This trick is designed for people who do not understand the meaning of this term and therefore will not specify it. This subtle point should be discussed with the employer at the interview.