Basic Salary Concepts
Salary glossary
| Term | Definition | Example |
|---|---|---|
| Gross salary | Total compensation before any deductions | $75,000/year on your offer letter |
| Net salary (take-home) | Amount after all taxes and deductions | $52,000/year in your bank account |
| Base salary | Fixed annual salary before bonuses or commissions | $75,000 base; $10,000 target bonus |
| Total compensation | All forms of compensation combined | $75K base + $3K match + $8K insurance + $5K bonus = $91K total |
| FICA | Social Security (6.2%) + Medicare (1.45%) = 7.65% | Deducted from every paycheck |
| W-4 | Federal tax withholding form | Determines how much federal tax is withheld per paycheck |
| Annual raise | Percentage increase to base salary | 3% raise on $75K = $2,250/year more |
Take-Home Pay Questions
Q: How much of my salary do I actually take home? Approximately 65–80% depending on income level, state, and deductions. At $75,000 with standard deductions in a state with 4% income tax: roughly 72% take-home before voluntary deductions like 401k and health insurance.
Q: How often will I be paid? Biweekly (every 2 weeks = 26 paychecks/year) is most common. Semimonthly (twice/month = 24 paychecks) and weekly are also common. Monthly is rare in the U.S. for most professional roles.
Negotiation and Raises Questions
Salary negotiation and raises quick reference
| Question | Answer |
|---|---|
| Should I always negotiate a job offer? | Yes — 84% of employers expect it; rarely costs you the offer |
| How do I ask for a raise? | Document performance, research market rate, ask specifically at a meeting |
| What is a typical annual raise? | 3–5% in 2025; inflation-adjusted 1–2% real increase |
| Is it legal for employers to prohibit salary discussions? | No — NLRA protects your right to discuss wages |
| When is the best time to negotiate? | When accepting an offer (most leverage) or after a major achievement |
Before any salary conversation, spend 30 minutes on Glassdoor, LinkedIn Salary, and Payscale for your specific role and location. Have 3 data points in hand. Use these to anchor your negotiation in market data rather than personal preference. Data transforms a wish into a professional expectation backed by evidence.
Calculate Your Salary Answers
Enter your gross salary — get your take-home pay, hourly equivalent, and comparison to market benchmarks.