2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
In recent years, Russian enterprises are introducing more and more foreign terms into their professional jargon, which may be incomprehensible to the average layman. In particular, at the interview, the employer may use the word "gross" in relation to the discussion of wages. This leads to the fact that the candidate for a vacant position does not specify the meaning of this term, so as not to seem uneducated, and after employment he will receive the wrong amount that was discussed at the interview. To avoid such situations, you need to know and understand the meaning of this newfangled word.
Origin and meaning of the word "gross"
As an economic concept, the word "gross" began to be used as early as 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 denoted:
- Counting unit representing 12 dozen.
- Huge, big.
- A prefix to form compound words meaning "main","supreme".
The origin of this word is still unclear.
In the Russian economic vocabulary, this term has been replaced by the more understandable word "gross". It denotes the total profit before taxes.
Gross-salary - what is it?
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 their ads. The so-called "gross" salary is a term used by accountants. The employer is betting that the applicant is not familiar with this concept.
"Gross", or "black" wages, is the amount before income tax. The employer can indicate it in employment contracts, and in fact the newly minted employee will receive a lower salary. This point must be discussed during the interview.
What is net salary?
Net is the salary that an employee receives every month actually on hand or on a bank card. It is also called the white salary, since it is this amount that remains after deducting taxes and insurance premiums.
Gross and net: calculation example
Now we have figured out that "gross" is the amount of wages that formally exist. How can you calculate the size of the "white" salary, if you know"black"?
Personal income tax is always withheld from "black" wages. In Russia it is 13%. In other words, to understand how much you will receive in your hands, you need to subtract 13% from the gross salary. For example, if the “gross” in the employment contract is 100,000 rubles, then the employee will receive 87,000 in his hands.
Situations often arise when the employer does not indicate the amount of remuneration in the employment contract at all. However, each month the amount may vary. 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 amount actually received by the number 0, 87.
In the economic lexicon, more and more unfamiliar foreign terms are constantly appearing. 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 applicants as possible, employers in the ad can indicate wages "gross" without tax and insurance deductions. Such a trick is designed for people who do not understand the meaning of this term and therefore will not clarify it. This subtle point should be discussed with the employer at the interview.
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