Gross Pay is the total amount of money an employee earns before any deductions are made. This includes wages, salaries, bonuses, and overtime pay. It represents the full compensation for work performed during a specific pay period. Employers calculate Gross Pay based on the agreed-upon rate of pay and the number of hours worked. Understanding Gross Pay is important for employees, as it helps them know their earnings before taxes and other deductions, which will result in their Net Pay, the amount they take home.