Payroll
What is Net Salary?
Net salary, often called take-home pay, is the amount an employee receives after deductions from gross salary.
In simple terms
Deductions can include income tax, employee provident fund contributions, professional tax, insurance premiums and authorised recoveries. The final figure may change month to month when earnings or deductions change.
Example
If gross earnings are ₹60,000 and deductions total ₹8,000, the net salary paid is ₹52,000.
Frequently asked questions
Is net salary the same as in-hand salary?
Yes. Both commonly refer to the amount paid after deductions.
Why can net pay change every month?
Overtime, unpaid leave, incentives, taxes and other deductions can change the final amount.