Take-home pay is the amount of money an employee receives after all deductions are made from their gross salary. These deductions typically include taxes, social security contributions, and retirement plan contributions. It represents the actual income that workers can use for their expenses and savings. Understanding take-home pay is important for budgeting and financial planning. It helps individuals determine how much they can spend on necessities, such as housing and food, as well as discretionary items. Knowing your take-home pay can also assist in making informed decisions about investments and savings for future goals.