HR & payroll glossary
What is Net salary?
Net salary (take-home pay) is what the employee actually receives: gross salary minus deductions such as employee PF, ESI, PT, TDS and loan recoveries.
Definition
Net salary is the amount credited to the employee's bank account. It is gross earnings less statutory deductions (employee PF, ESI, PT, LWF, TDS) and any other recoveries such as loan EMIs, advances or notice-period recovery.
How it works
- Net = gross − employee PF − employee ESI − PT − LWF − TDS − other recoveries.
- Payroll teams usually compare this month's net with last month's to catch errors before approval.
Why HR and payroll teams care
Net pay is what employees notice. Unexplained swings from arrears, LOP or tax changes generate most payroll queries.
Example
From gross to net
- Gross ₹65,000 − PF ₹3,000 − PT ₹200 − TDS ₹3,000 = Net ₹58,800
Net salary in NeevHR
Related reading
See how NeevHR handles Net salary in payroll and HR
A walkthrough on your own policies and pay structures.