What are gross pay and taxable pay?

Gross pay

Gross pay is the employee’s total pay of any kind before any deductions are made, including:

  • notional pay
  • share based remuneration
  • the employee's pay before any pension contributions or salary sacrifice deductions are made.

Chapter 3 of the Employers’ Guide to PAYE details the different types of pay that would be included.

Taxable pay

Taxable pay is your employee's gross pay less any contributions the employee makes to a:

You must deduct these amounts from your employee's gross pay before you calculate the tax.