Payroll
Net salary
Net salary, or take-home, is what remains after statutory and voluntary deductions are subtracted from gross salary.
Net pay is gross minus the employee share of PF, ESI where applicable, professional tax, TDS, and any voluntary deductions such as loan recovery or salary advance.
It is the amount transferred to the bank account and the figure most employees mean when they say "my salary".
In Indian payroll
Because employer PF and gratuity sit inside CTC, net pay is often 25 to 35 percent below CTC divided by twelve. A CTC calculator that shows the path from one to the other prevents most joining-day disappointment.
What is Net salary?
Net salary, or take-home, is what remains after statutory and voluntary deductions are subtracted from gross salary.
Why does Net salary matter in Indian payroll?
Because employer PF and gratuity sit inside CTC, net pay is often 25 to 35 percent below CTC divided by twelve. A CTC calculator that shows the path from one to the other prevents most joining-day disappointment.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where Net salary is handled, on the same employee record as everything else.
WhatsApp us