gross up: meaning, definition, pronunciation and examples
C1Formal, business, financial, legal
Quick answer
What does “gross up” mean?
To adjust a net amount (e.
Audio
Pronunciation
Definition
Meaning and Definition
To adjust a net amount (e.g., a salary, payment, or interest) by adding tax or other deductions back to it, resulting in the original gross amount.
To calculate or express a figure as if it were a gross amount before any withholdings; to increase a net sum to its equivalent gross value for comparison or contractual purposes.
Dialectal Variation
British vs American Usage
Differences
The term and its usage are nearly identical in both varieties, reflecting shared financial terminology.
Connotations
Neutral and technical in both regions. No significant connotative difference.
Frequency
Equally common in professional finance and HR contexts in both the UK and US.
Grammar
How to Use “gross up” in a Sentence
[subject] grosses up [object (net amount)][object (net amount)] is grossed up (by [subject])Vocabulary
Collocations
Examples
Examples of “gross up” in a Sentence
verb
British English
- The HR department will gross up the net payment to account for the higher tax code.
- Please ensure the final settlement is grossed up for National Insurance contributions.
American English
- The contract stipulates the company must gross up any severance pay for federal and state taxes.
- To make the offers comparable, we grossed up the net salaries from each country.
adverb
British English
- N/A
American English
- N/A
adjective
British English
- N/A
American English
- N/A
Usage
Meaning in Context
Business
The company agreed to gross up the relocation bonus so the employee received the full promised amount after tax.
Academic
The study analysed how executive compensation packages are grossed up to provide net-of-tax value comparisons.
Everyday
Rarely used in everyday conversation outside specific financial discussions.
Technical
The clause requires the issuer to gross up the interest payment should any withholding tax apply.
Watch out
Common Mistakes When Using “gross up”
- Using it intransitively (e.g., 'The salary grossed up.' - incorrect).
- Confusing it with the adjective 'gross' meaning disgusting.
- Misspelling as 'grose up'.
- Using it to mean simply 'increase' without the specific financial reversal meaning.
FAQ
Frequently Asked Questions
Primarily yes, but it can apply to any deduction reversed to find a gross amount, though tax is the most common context.
Rarely. The noun form is usually 'gross-up' (hyphenated), as in "The contract includes a gross-up clause."
The opposite process is 'net down' or simply 'deduct taxes/withholdings' to arrive at a net amount.
It is a formal, technical term used in finance, accounting, law, and human resources. It is not used in casual conversation.
To adjust a net amount (e.
Gross up: in British English it is pronounced /ɡrəʊs ʌp/, and in American English it is pronounced /ɡroʊs ʌp/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A golden hello is often grossed up to account for the recipient's tax liability.”
Learning
Memory Aids
Mnemonic
Think of pouring liquid (tax) BACK UP into a measuring cup to see its original GROSS (total) amount before some was taken out.
Conceptual Metaphor
RESTORATION TO A WHOLE (reversing a deduction to return to the original, complete amount).
Practice
Quiz
What does it mean to 'gross up' a net figure?