Net Salary (Take-Home Salary)

Net Salary, or take-home salary, is the number that matters day to day: what actually lands in the bank account after every employee-side deduction is subtracted from Gross Salary. Those deductions typically include the employee's PF contribution, Professional Tax, and TDS.

Calculating it is a two-step process — first subtract employer-side contributions from CTC to get Gross Salary, then subtract employee-side deductions from Gross Salary to arrive at Net Salary. The gap between CTC and Net Salary is usually the single most confusing part of an offer letter for a new hire.