Net/Gross Salary Calculator

If you need to calculate gross and net salaries, then feel free to use the free salary calculator on the employment agency Amer International website.

What is a Net/Gross Salary Calculator and How Does It Work?

A Net/Gross Salary Calculator is a simple and automated tool available online, which allows you to calculate net and gross salary, as well as the total cost of employing workers.

You just need to enter the required data, for example, to calculate the amount of tax, various contributions. At the end, you get a clear table with accurate results that you can analyze.

Gross and Net Salary - Difference and Meaning

Many people do not know what gross and net salary is, do not know the difference between the two terms. However, it is worthwhile to complete the knowledge, because the value of the salary in the gross amount differs strongly from what the net variant represents.

The accurate calculation of the value of the amount determines how much money you will receive for the work done.

Net salary is the amount an employee receives after deducting various contributions and taxes from his full gross salary.

In short, net salary is the "pure" salary that an employee receives on hand after all deductions are taken into account.

On the other hand, net salary refers to the amount received at the end of each pay period. This involves deducting a portion of the gross amount for all fund contributions.

Gross salary is the total amount an employee earns before any deductions.

The easiest way to calculate the difference between gross and net is to use a ready-made tool in the form of a salary calculator.

How to Calculate the Hourly Rate?

A simple formula is used to calculate the hourly rate, divide the amount of the minimum wage by the number of hours worked in a given month. As you can see, there is nothing complicated about it.

It is slightly different for the hourly rate for weekend work, because the employer is obliged to pay the employee a salary supplement.

Calculating Gross Salary Knowing the Net Amount

Our salary calculator acts as a net gross calculator, with the help of which you can quickly check how much money you will receive for the fulfillment of professional duties.

You can calculate the amount of net, gross, total cost to the employer.

In our calculator it is sufficient to enter the amount, that is, the type of rate, in this case the monthly rate and select the gross variant.

In order to calculate the salary, you may also be required to specify additional parameters, that is, if the employee was hired outside the place of residence, has a business, works for another employer, is over 26 years old.

If you know the net amount, then to calculate the gross salary you need to add to it the contributions (pension, disability, sickness, insurance, income tax).

Effect of the Type of Contract on Gross and Net Salary

Depending on the type of contract, the gross and net salary will be different.

The employer is obliged to give the hired employee a contract to sign before starting work. It must show the gross amount, regardless of whether you enter into a contract of employment, work or commission.

When calculating net and gross wages, the difference between the two totals is taken into account, and this is due to the inclusion of advance income tax amounts.

If someone signed a contract of employment or a contract of mandate, then you still need to additionally deduct the salary for social security and health insurance contributions. With an employment contract there are disability, sickness, health and pension contributions.

Effect of Salary on Income Tax

Every year taxpayers are obliged to file an annual PIT return, unfortunately, this involves a charge on the income of individuals, and the employer is responsible for deducting an advance tax payment and paying it to the tax office.

Income is income minus the costs of obtaining it. It is also worth noting that deductible expenses are set top-down, and their amount is affected by many factors, primarily the number of full-time positions, the place of employment.

When calculating you need to take into account the tax-free amount, the amount of advances from the employee's salary, possible deductions from income such as relief for medicines, donation, Internet relief, equivalent for honorary blood donation.

Zero PIT Relief for the Young - What Does It Mean?

Young people can count on zero PIT, which entails an income tax exemption for employees under the age of 26. The relief covers wages earned from an employment relationship, contracted work, service relationship, cooperative employment relationship, contract of mandate, graduate internship, student internship.

It is worth noting right away that there is not even a need for any statement from the employer, because PIT for the young is applied automatically.

Tax-Free Amount and Its Meaning

The tax-free amount is set by law, it applies to income not subject to income tax. Only those who settle their income with PIT 36 or PIT 37, on a general basis, can take advantage of this solution.

According to the PIT, the tax-free amount applies if it does not exceed PLN 30,000 per year. On the other hand, you can earn up to PLN 2,500 tax-free per month, so there is no tax liability.

Deductible Expenses for an Employee

Tax-deductible expenses for an employee consist of various expenses that he incurred in connection with the receipt of income. This involves a reduction in the tax base, i.e. less tax to pay. In short, income consists of income after deducting the costs of obtaining it.

Employee Capital Plans - Options for Saving for Retirement

Employee Capital Plans are a retirement savings system, and the money earned is in the form of private and inherited capital.

The employee, together with the employer, chooses the financial institution responsible for opening an individual account into which a specific payment is deposited each month.

Calculation of the Employer's Costs

The employer can very quickly calculate the total cost of hiring an employee using a salary calculator.

It becomes possible to estimate the burden of income tax that the entrepreneur must pay for each employee hired, as well as to calculate the Social Security contributions due for him and determine the net salary.