What is Net Salary?
Net Salary, also referred to as the Take Home Salary, is the amount that gets credited to an employee’s salary account on a monthly basis (or weekly, depending on the terms of the employment contract). This sum is given by the organization, in which the individual is employed in, after the employer has subtracted deductions like professional tax, EPF, etc.
It is crucial to take note of the net salary at the time of salary calculations. Net salary is the actual figure that an employee gets towards his services provided to the organization. The payment received can be utilized for managing costs such as household expenses, EMIs, travel expenditure, etc. When a CTC offer is made to a potential employee, the individual must enquire of the net salary. Often times, many of the components listed in the salary structure can appear puzzling. An employee should understand the difference between net salary and gross pay with respect to the CTC offered. Should the CTC be large, while the net salary seems quite low, it can lead to financial problems for the employee in the future.
