What is gross wages?

When a person is hired or employed by the employer, the employer agrees to pay the employee a certain sum of money as his remuneration for his work. This sum includes the basic pay and other perks and allowances. The total amount an employee is entitled to receive is the gross pay. There will generally be a number of deductions like tax and insurance from the gross pay. What remains after the deductions is the net pay which the employee gets in his hands.