NET PAY ARRANGEMENT
|NET PAY ARRANGEMENT
As a general principle, pay is agreed in the form of gross pay. In the construction and agricultural sectors, however, net pay arrangements are also agreed under which the employer undertakes to pay the employee a specified net sum, i.e. net pay, and to pay the authorities the appropriate deductions from pay. The latter are calculated on the basis of the corresponding gross pay to which the employee would have been entitled in order to earn the agreed net pay.