Tax on Wages?

laurette · Apprentice Joined: 22 Mar 2008 Posts: 2

I graduated last summer and after my graduation I visited Spain for four months. It was a reward from my parents, and I really enjoyed it there. But now, the time has come to act as an adult. My friends from school already have jobs, and I decided to do the same. I heard people talking about gross and net salaries, and taxes also. Could you explain something about tax on wages?

boyce · Apprentice Joined: 30 Jan 2007 Posts: 3

Gross salary is amount of money you earn before any deductions. But, your employer will be obligated to deduct income tax from your salary; it is a part of your income that goes to government for transportation, health, education etc. The net salary is amount of money you actually receive, after all deductions. You will also receive a pay slip, which will have detailed information about everything you have had to pay like tax or insurance. There is also certain amount of money you can earn without paying taxes, known as personal allowance.