Take-home pay is the pay that you receive from your employer after they’ve taken off taxes and other deductions. It’s a more colloquial term for your Net Income.
What your employer deducts from your salary:
Fundamentally, your take-home pay is what you’re left with from your salary each month.
Your net income can be easily worked out by deducting your tax, National Insurance, pension contributions and student loan repayments etc. Your net income can also be checked by seeing the amount actually being paid into your bank account. Ensure that you are on the correct tax code so that you are paying the correct Income Tax and National Insurance – you can check this with HMRC.
Your salary is your gross income. For example, if your salary is £24,000, this is your gross pay, but you won’t actually receive £24,000 into your bank account each year. You’ll receive your net income – £24,000 gross income minus deductions.