Net Salary (Take-Home)
Net salary is what actually reaches an employee's bank account — gross earnings for the period less every deduction and recovery.
Also known as: take home salary, in-hand salary, net pay
The deductions between gross and net are typically the employee's provident fund contribution, professional tax where the state levies it, income tax deducted at source, ESI where applicable, and any recoveries such as advances or unreturned assets.
Take-home is usually somewhere between 70% and 85% of CTC, but the range is wide enough that the figure cannot be guessed from CTC alone. A candidate who accepts an offer on CTC and is surprised by their first payslip has not been misled — they were given the wrong number to compare on.
It is also the number that moves most between months. Unpaid absence, a tax adjustment as the financial year closes, or an investment declaration processed late will all change take-home while CTC stays exactly the same.
Handled in SignHR
Payroll
Payroll support & integration: salary structures, attendance-to-payroll inputs, payslip access, reimbursements, and a clean hand-off to your payroll provider.
See payrollRelated terms
Gross Salary
Gross salary is total earnings for a period before any deductions — basic, allowances and any other earnings added together, but before PF, tax or recoveries.
CTC (Cost to Company)
CTC is the total annual cost an employer bears for an employee — salary, allowances, employer contributions and benefits combined — not the amount the employee receives.
TDS (Tax Deducted at Source)
TDS is income tax an employer withholds from salary each month and pays to the government on the employee's behalf, rather than the employee paying it in a lump sum at year end.
LOP (Loss of Pay)
LOP is an unpaid absence — a day an employee did not work and had no paid leave balance to cover, so the corresponding salary is deducted from that month's pay.