Pay structure: from gross to deductions
Step 1 / 4·The four layers of a payslip
0/4 steps done
Learning objectives — after this module you will:
- Map the path from gross pay to net pay
- Tell taxable components from exempt ones
- Understand why the tax base and the insurance base differ
The four layers of a payslip
Get the overall map before the detail.
The most common mistake newcomers to payroll make is assuming there is ONE salary figure. In reality there are at least four different figures for the same person, serving four different purposes: gross pay, the insurance contribution base, taxable income, and net pay.
Confusing these four is the source of almost every payroll error. For example, an allowance may be added to gross pay, NOT added to the insurance base, and yet BE subject to personal income tax. Three different answers about the same sum of money.
Practitioner guidance, not tax advice
This course teaches the METHOD of calculation and the classification principles. The specific figures (personal deductions, the reference level, regional minimum wages, bracket thresholds) change over time — always check the current instrument before running real payroll. It does not replace tax advice on a specific matter. Current as of August 2026.
Key takeaway: One person has four different salary figures; confusing them causes most payroll errors.