{"id":4968,"date":"2022-01-07T13:28:12","date_gmt":"2022-01-07T13:28:12","guid":{"rendered":"http:\/\/43.204.200.242\/hr-glossary\/net-salary\/"},"modified":"2024-11-12T18:34:37","modified_gmt":"2024-11-12T13:04:37","slug":"net-salary","status":"publish","type":"hr-glossary","link":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary","title":{"rendered":"Net Salary"},"content":{"rendered":"

What is net salary?<\/b><\/h2>\n

Net or take-home salary is the money an employee receives after all deductions from their gross salary<\/a>. These deductions typically include income tax, employee contribution to provident fund<\/a>, professional tax<\/a>, and other statutory deductions.<\/span><\/p>\n

Formula of net salary<\/strong><\/h3>\n

Net salary = Gross Salary – Deductions<\/strong><\/p>\n

where:<\/span><\/p>\n

    \n
  • Gross salary is the total amount of salary an employee earns before deductions<\/span><\/li>\n
  • Deductions are the amount of money that is taken out of an employee’s gross salary before they receive their take home salary.<\/span><\/li>\n<\/ul>\n

    Example\u00a0<\/b><\/h3>\n

    Assume the following:<\/span><\/p>\n

      \n
    • Gross salary: <\/strong>Rs. 100,000<\/li>\n
    • Income tax bracket:<\/strong> <\/span>20%<\/li>\n
    • Employee’s contribution to provident fund (PF): <\/strong>12%<\/li>\n
    • Professional tax: <\/strong>Rs. 2,000<\/li>\n<\/ul>\n

      How to calculate net salary?<\/b><\/h3>\n

      Take home salary = Gross Salary – Deductions<\/strong><\/p>\n

      = Rs. 100,000 – (20% * Rs. 100,000) – Rs. 12,000 – Rs. 2,000<\/span><\/p>\n

      = Rs. 76,000<\/span><\/p>\n

      Therefore, the take home pay in this case is Rs. 76,000.<\/span><\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-4968","hr-glossary","type-hr-glossary","status-publish","hentry"],"acf":[],"yoast_head":"\nWhat is Net Salary? | Meaning & Definition | Akrivia HCM<\/title>\n<meta name=\"description\" content=\"Net salary is the money you receive from your employer after deductions. Your net income usually comes in the form of a weekly, bi-monthly, or monthly paycheck.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net Salary\" \/>\n<meta property=\"og:description\" content=\"Net salary is the money you receive from your employer after deductions. Your net income usually comes in the form of a weekly, bi-monthly, or monthly paycheck.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary\" \/>\n<meta property=\"og:site_name\" content=\"Akrivia HCM\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AkriviaHCM\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-12T13:04:37+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@AkriviaHCM\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/hr-glossary\\\/net-salary\",\"url\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/hr-glossary\\\/net-salary\",\"name\":\"What is Net Salary? | Meaning & Definition | Akrivia HCM\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/#website\"},\"datePublished\":\"2022-01-07T13:28:12+00:00\",\"dateModified\":\"2024-11-12T13:04:37+00:00\",\"description\":\"Net salary is the money you receive from your employer after deductions. Your net income usually comes in the form of a weekly, bi-monthly, or monthly paycheck.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/hr-glossary\\\/net-salary#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/hr-glossary\\\/net-salary\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/hr-glossary\\\/net-salary#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/akriviahcm.com\\\/resources\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Net Salary\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/#website\",\"url\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/\",\"name\":\"Akrivia HCM\",\"description\":\"Hire to Retire HCM Suite\",\"publisher\":{\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/#organization\"},\"alternateName\":\"Akriviahcm.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/#organization\",\"name\":\"Akrivia HCM\",\"url\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"\",\"contentUrl\":\"\",\"caption\":\"Akrivia HCM\"},\"image\":{\"@id\":\"https:\\\/\\\/akriviahcm.com\\\/resources\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/AkriviaHCM\",\"https:\\\/\\\/x.com\\\/AkriviaHCM\",\"https:\\\/\\\/instagram.com\\\/akriviahcm\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/akrivia-hcm\\\/\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What is Net Salary? | Meaning & Definition | Akrivia HCM","description":"Net salary is the money you receive from your employer after deductions. Your net income usually comes in the form of a weekly, bi-monthly, or monthly paycheck.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary","og_locale":"en_US","og_type":"article","og_title":"Net Salary","og_description":"Net salary is the money you receive from your employer after deductions. Your net income usually comes in the form of a weekly, bi-monthly, or monthly paycheck.","og_url":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary","og_site_name":"Akrivia HCM","article_publisher":"https:\/\/www.facebook.com\/AkriviaHCM","article_modified_time":"2024-11-12T13:04:37+00:00","twitter_card":"summary_large_image","twitter_site":"@AkriviaHCM","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary","url":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary","name":"What is Net Salary? | Meaning & Definition | Akrivia HCM","isPartOf":{"@id":"https:\/\/akriviahcm.com\/resources\/#website"},"datePublished":"2022-01-07T13:28:12+00:00","dateModified":"2024-11-12T13:04:37+00:00","description":"Net salary is the money you receive from your employer after deductions. Your net income usually comes in the form of a weekly, bi-monthly, or monthly paycheck.","breadcrumb":{"@id":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary#breadcrumb"},"inLanguage":"en","potentialAction":[{"@type":"ReadAction","target":["https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/akriviahcm.com\/resources\/hr-glossary\/net-salary#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/akriviahcm.com\/resources"},{"@type":"ListItem","position":2,"name":"Net Salary"}]},{"@type":"WebSite","@id":"https:\/\/akriviahcm.com\/resources\/#website","url":"https:\/\/akriviahcm.com\/resources\/","name":"Akrivia HCM","description":"Hire to Retire HCM Suite","publisher":{"@id":"https:\/\/akriviahcm.com\/resources\/#organization"},"alternateName":"Akriviahcm.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/akriviahcm.com\/resources\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en"},{"@type":"Organization","@id":"https:\/\/akriviahcm.com\/resources\/#organization","name":"Akrivia HCM","url":"https:\/\/akriviahcm.com\/resources\/","logo":{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/akriviahcm.com\/resources\/#\/schema\/logo\/image\/","url":"","contentUrl":"","caption":"Akrivia HCM"},"image":{"@id":"https:\/\/akriviahcm.com\/resources\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/AkriviaHCM","https:\/\/x.com\/AkriviaHCM","https:\/\/instagram.com\/akriviahcm\/","https:\/\/www.linkedin.com\/company\/akrivia-hcm\/"]}]}},"_links":{"self":[{"href":"https:\/\/akriviahcm.com\/resources\/wp-json\/wp\/v2\/hr-glossary\/4968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/akriviahcm.com\/resources\/wp-json\/wp\/v2\/hr-glossary"}],"about":[{"href":"https:\/\/akriviahcm.com\/resources\/wp-json\/wp\/v2\/types\/hr-glossary"}],"wp:attachment":[{"href":"https:\/\/akriviahcm.com\/resources\/wp-json\/wp\/v2\/media?parent=4968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}