What is the amount paid after deductions called?

Prepare for the WJEC GCSE Business Studies Test with interactive quizzes and detailed explanations. Enhance your knowledge on key business concepts and boost your exam confidence.

Multiple Choice

What is the amount paid after deductions called?

Explanation:
This question tests understanding of what “take-home” pay is. The amount paid after deductions is net pay—the money you actually receive after deductions like income tax, National Insurance, and any pension or loan repayments have been subtracted. Gross pay is the total amount earned before any deductions, so it isn’t the amount you take home. Wages and salary describe how pay is arranged or earned, but not specifically the amount left after deductions. For example, you might have gross pay of £2,000, deductions of £400, and net pay of £1,600.

This question tests understanding of what “take-home” pay is. The amount paid after deductions is net pay—the money you actually receive after deductions like income tax, National Insurance, and any pension or loan repayments have been subtracted. Gross pay is the total amount earned before any deductions, so it isn’t the amount you take home. Wages and salary describe how pay is arranged or earned, but not specifically the amount left after deductions. For example, you might have gross pay of £2,000, deductions of £400, and net pay of £1,600.

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