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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Net pay
What actually reaches the employee's bank account: gross less the employee's own statutory contributions, tax deducted at source and any other authorised deductions.
Take-home is the figure employees check first on payday, so HR sees the questions within hours of salary credit. Most queries come from three causes: a TDS change after a declaration update, loss of pay from attendance, and a one-time deduction such as an advance recovery.
As an example, an employee whose net is usually ₹42,000 receives ₹38,500. The payslip should let anyone trace the ₹3,500: perhaps two days of loss of pay and an increase in monthly TDS after unproved declarations were removed. If the reasons are not visible on the payslip, every one of these becomes an email to HR.
Offers are the other place take-home matters. Candidates compare offers on monthly net pay, so recruiters should show an indicative take-home based on the structure, clearly labelled as depending on the tax regime and declarations, rather than leave the candidate to divide CTC by twelve.
Net pay: what reaches the employee's bank account.
Gross less the employee's statutory contributions, TDS and other authorised deductions.
No. CTC is the employer's total cost; take-home is lower.
No. Gross is before deductions.
Yes, as a statutory contribution.
Yes.
As net pay on the payslip.
The salary calculator.
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