Bruttopalkka

Bruttopalkka (gross salary) is the total amount an employee earns before any payroll deductions. It is the gross sum stipulated in the employment contract and can include the base wage, overtime pay, bonuses, shift allowances, and other regular earnings. It does not usually include reimbursed expenses, which are typically paid separately and may have different tax treatment.

In Finland, bruttopalkka serves as the starting point for calculating take‑home pay. The employer withholds earned income tax according to the employee’s tax card and applies social security contributions paid by the employee, such as pension insurance and unemployment insurance, as well as health insurance contributions. The exact rates depend on factors such as income level, municipality, church membership, and applicable collective agreements. After these deductions, the remaining amount is the net salary (nettopalkka), which is paid to the employee.

In payroll practice, bruttopalkka is used for budgeting, salary negotiations, and reporting. It provides a transparent figure for compensation before statutory and negotiated deductions. The term is widely used in Finland and is analogous to gross wage concepts in other Nordic languages.