Legal Definitions - take-home pay

Definition: Take-home pay refers to the amount of money an employee receives after deductions such as income taxes, social-security taxes, voluntary contributions, and union dues have been taken out of their gross wages or salary. It is the net amount of a paycheck.

Example: If an employee earns $2,000 per month and their deductions total $500, their take-home pay would be $1,500.

This example illustrates how take-home pay is calculated by subtracting deductions from gross wages or salary to determine the net amount of a paycheck.