Net Salary

What is Net Salary?

The net salary is defined as the wage that the employee actually receives before income tax is deducted from the basic salary. It is obtained by deducting the employee’s social security contributions, the general social contribution, and the contribution to the repayment of the social debt from the gross salary.

It is calculated on the basis of the net fiscal salary provided to the employee. It does not include profit-sharing and incentive payments given to the employee for better performance. Usually, they are not taxable, but it includes the employer’s contributions for compulsory supplementary health insurance.

Net salary= Gross Salary – Taxes paid

Also, See: Fixed Pay | Gross Salary | Basic Salary | CTC