The net pay received by employees is commonly called what?

The term commonly used to refer to the net pay received by employees is "take home pay." This amount is what employees actually receive after all deductions have been made from their gross pay. Deductions typically include taxes, retirement contributions, health insurance premiums, and other payroll deductions.

"Take home pay" is a straightforward term that reflects the amount of money that employees can use for their personal expenses, savings, and investments after fulfilling all mandatory and voluntary deductions from their earnings. This clarity reinforces its common usage in both professional and everyday discussions about employee compensation.

Other terms like gross pay refer to the total amount earned before deductions, net earnings also points to the post-deduction amount but is less commonly used in everyday language compared to take home pay, and base salary specifically describes the fixed portion of an employee's compensation, excluding bonuses or incentives. Thus, "take home pay" is the most recognized and widely used term for net pay in practical contexts.