nettoansioon

Nettoansioon is a term often encountered in financial and accounting contexts, particularly in Estonia. It translates directly from Estonian as "net wage" or "take-home pay." This figure represents the amount of money an employee actually receives after all mandatory deductions have been made from their gross salary.

The gross salary, or bruttoansioon, is the agreed-upon total compensation before any taxes or social contributions are subtracted. From this gross amount, various deductions are applied. These typically include income tax (tulumaks) and social security contributions (sotsiaalmaks), which cover pensions, healthcare, and unemployment insurance. The nettoansioon is the remaining sum that is transferred to the employee's bank account. Understanding the difference between gross and net pay is crucial for personal budgeting and for employers to accurately calculate payroll. It is the nettoansioon that dictates an individual's disposable income for spending and saving.