Net pay, also called take‑home pay, is the amount of money you actually receive in your paycheck after deductions. It is what’s left from your gross income once taxes and other amounts are subtracted.
What’s Deducted
- Income taxes: Federal and provincial/territorial income tax withholdings.
- Payroll contributions: CPP/QPP, EI, QPIP, and other government program contributions.
- Other deductions: Such as health benefits, pension contributions, or union dues.
Final Thoughts
Net pay represents the real money available to cover your expenses, savings, and spending. It is the most practical figure for budgeting and day‑to‑day financial planning.