Digit
headset_mic account_circle
mail
Sign In
  • Products

    Motor

    • Car Insurance
    • Two Wheeler/Bike Insurance
    • Commercial Vehicle Insurance
    • Taxi/Cab Insurance
    • Auto Rickshaw Insurance
    • Truck Insurance

    Health

    • Health Insurance
    • Super Top-up Health Insurance
    • Arogya Sanjeevani Policy
    • Corporate Health Insurance
    • Health Insurance Portability

    Other

    • International Travel Insurance
    • Flight Delay
    • Shop Insurance
    • Home Insurance
  • Claims

    • File a Claim
    • File Health Claim
    • File Motor Claim for Garages
    • Claim Status
    • Digit Cashless Garages
    • Digit Cashless Hospitals
  • Renewals
  • Become an Agent
  • Digit Products

    Motor Insurance

    • Car Insurance 25% OFF
    • Two Wheeler/Bike Insurance
    • Commercial Vehicle Insurance
    • Taxi/Cab Insurance 15% OFF
    • Auto Rickshaw Insurance
    • Truck Insurance

    Health Insurance

    • Health Insurance
    • Super Top-Up Health Insurance
    • OPD Health Insurance
    • Arogya Sanjeevani Policy
    • Personal Accident Insurance
    • Corporate Health Insurance

    Other Insurance

    • International Travel Insurance
    • Flight Delay
    • Shop Insurance
    • Home Insurance
  • Claims

    File a Claim

    File Health Claim

    File Motor Claim for Garages

    COVID-19 Assistance

    Claim Status

  • Renewals

    Become an Agent

  • Support
    Sign In
    • edit Edit Policy
    • download Download Policy
    • person_pin My Service Requests
    • check Check Policy Status
    call 1800-258-5956 mail_outline hello@godigit.com whatsapp 70260 61234

    Our WhatsApp number cannot be used for calls. This is a chat only number.

  • My Account
    account_circle
    • autorenew Renew My Policy
    • download Download My Policy
    logout SIGN OUT
    call 1800-258-5956 mail_outline hello@godigit.com whatsapp 70260 61234

    Our WhatsApp number cannot be used for calls. This is a chat only number.

  • login
  • about
  • contact
  • careers
More Products

Motor

  • Car Insurance
  • Two Wheeler/Bike Insurance
  • Commercial Vehicle Insurance
  • Taxi/Cab Insurance
  • Auto Rickshaw Insurance
  • Truck Insurance

Health

  • Health Insurance
  • Super Top-up Health Insurance
  • Arogya Sanjeevani Policy
  • Corporate Health Insurance
  • Health Insurance Portability

Other

  • International Travel Insurance
  • Flight Delay
  • Shop Insurance
  • Home Insurance

Support

close
account_circle
  • edit Edit Policy
  • download Download Policy
  • person_pin My Service Requests
  • check Check Policy Status
  • autorenew Renew My Policy
  • download Download My Policy
logout SIGN OUT
call 1800-258-5956 mail_outline hello@godigit.com whatsapp 70260 61234

Our WhatsApp number cannot be used for calls. This is a chat only number.

Do the Digit Insurance

Trusted by 3 Crore+ Indians

  • Health
    Health
  • Pay as you Drive
    Car Side View
    Car
  • trending icon

    Third-party premium has changed from 1st June. Renew now

    Motorcycle Side View
    Bike
  • auto rikshaw
    Commercial
  • Covers COVID-19
    Travel Airplane
    Travel
  • More products
    More
ENTER YOUR CAR NUMBER
keyboard_arrow_right
DON'T KNOW YOUR CAR NUMBER?
keyboard_arrow_right
renew digit policy keyboard_arrow_right

I agree to the  Terms & Conditions

{{(!carWheelerCtrl.registrationNumberCardShow || carWheelerCtrl.localStorageValues.vehicle.isVehicleNew) ? 'I know my Reg num' : 'Don’t have Reg num?'}}
keyboard_arrow_right
It’s a brand new Car
keyboard_arrow_right
renew digit policy keyboard_arrow_right

I agree to the  Terms & Conditions

Terms and conditions

    false false
    Enter valid registration number
    DON'T KNOW REGISTRATION NUMBER?
    keyboard_arrow_right
    I KNOW MY REGISTRATION NUMBER
    keyboard_arrow_right
    IT'S A NEW BIKE
    keyboard_arrow_right
    RENEW DIGIT POLICY
    keyboard_arrow_right

    I agree to the  Terms & Conditions

    Continue with {{bikeCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments') !== -1 ? 'payment completion': 'previous choice'}}

    {{bikeCtrl.lastVisitedData.vehicle.makeModel | toTitleCase}} {{bikeCtrl.lastVisitedData.vehicle.variant? (bikeCtrl.lastVisitedData.vehicle.variant|toTitleCase): (bikeCtrl.lastVisitedData.vehicleCharacteristics.vehicleType | toTitleCase)}}

    {{bikeCtrl.lastVisitedData.vehicle.licensePlateNumber}}

    {{bikeCtrl.selectedPlanDisplay[bikeCtrl.lastVisitedData.dropOffSelectedPlan? bikeCtrl.lastVisitedData.dropOffSelectedPlan: bikeCtrl.lastVisitedData.selectedPlan]}}

    -

    ₹{{((bikeCtrl.lastVisitedData.dropOffSelectedPlan ? bikeCtrl.lastVisitedData.dropOffGrossPremium:bikeCtrl.lastVisitedData.chosePlan.grossPremium) .replace('INR ','')).split('.')[0] | rupeeFormatWithComma}} (Incl 18% GST)

    keyboard_arrow_right
    IT'S A NEW BIKE
    keyboard_arrow_right
    RENEW DIGIT POLICY
    keyboard_arrow_right

    I agree to the  Terms & Conditions

    Continue with {{twoWheelerCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments') !== -1 ? 'payment completion': 'previous choice'}}

    {{twoWheelerCtrl.lastVisitedData.vehicle.make |toTitleCase}} {{twoWheelerCtrl.lastVisitedData.vehicle.model | toTitleCase}} {{twoWheelerCtrl.lastVisitedData.vehicle.variant? (twoWheelerCtrl.lastVisitedData.vehicle.variant |toTitleCase):''}}

    {{twoWheelerCtrl.lastVisitedData.vehicle.licensePlateNumber}}

    {{twoWheelerCtrl.lastVisitedData.selectedPlan}}

    -

    ₹{{((twoWheelerCtrl.lastVisitedData.quickQuoteResponse.plans[twoWheelerCtrl.lastVisitedData.selectedPlan].resposeBody.grossPremium) .replace('INR ', '')).split('.')[0] | rupeeFormatWithComma}} (Incl 18% GST)

    • Geography
    • Country
    {{geography.name}}

    Popular Countries (You can select more thane one)

    • {{country}}

    DONE
    Please select geography

    I agree to the  Terms & Conditions

    As mandated by Spanish Authorities your travel insurance needs to extend 15 days after your trip ends.
    We will extend your coverage period accordingly.

    false false false false false false false false false false false false

    Port my existing Policy

    keyboard_arrow_right
    or renew digit policy keyboard_arrow_right
    Chat with an expert

    I agree to the  Terms & Conditions

    You can select more than one member

    • -+ Max kids
      (s)
    ENTER YOUR REGISTRATION NUMBER
    keyboard_arrow_right
    DON'T KNOW YOUR REGISTRATION NUMBER
    keyboard_arrow_right
    or renew digit policy keyboard_arrow_right

    I agree to the  Terms & Conditions

    Terms and conditions

    Terms and conditions

    Do the Digit Insurance
    • Health
    • Car
    • Bike
    • Commercial
    • Travel
    • More Products

    What is Net Salary: Calculation & Formula & Explained

    net salary
    (Source: dnaindia)

    Salary is a periodic payment from an employer to its employees for their work as specified in the contract. Want to know about net salary in detail? if yes, then keep reading!

    What Is Net Salary?

    net salary meaning
    (Source: marketing91)

    Net salary is actually known as take-home salary. It is an amount credited to an employee’s bank account (a salary account) every month. A firm offers this sum of money to an employee employed in it after deducting components like EPF, professional tax, ESIC, etc. However, some firms do not provide EPF or ESIC, and some states do not levy any professional tax.

    Knowing about net salary is critical as this amount helps to take care of EMIs, household expenses, travel expenditure, and various other daily needs.

    When a CTC offer is made, you must enquire about net salary as various components in the salary structure may be confusing. If the CTC is good, but the take-home part is less, it may add to financial problems. So, it is always necessary to get things clarified beforehand.

    How Is Net Salary Different from Gross Salary?

    Here, we have shared the comparison between these two; please check the same below.

    Net Salary

    Gross Salary

    It is the final payment made after deductions for EPF, ESIC, Professional Tax, Income Tax or Tax Deducted at Source and others.

    It is an amount paid to a person by an employer before making any deductions.

    Net pay is lower than gross pay.

    Gross pay is the sum of all benefits and allowances before any deduction.

    How to Calculate Net Salary?

    To know about net salary, it is important to know how to calculate. Here, we have shared one example for better understanding.

    Example -

    Arpit works at an EdTech firm. His gross salary yearly is ₹3,50,000. So, what is his net payment? Check the calculation below.

     

    Gross salary is -

    Salary Components

    Value

    Basic Salary

    ₹30,000

    HRA

    ₹1,20,000

    LTA

    ₹60,000

    Special Allowance

    ₹1,40,000

    So, the Total (A) = ₹3,50,000 (Sum of all the components)

    Deductions are-

    Deduction Components

    Value

    Employee Provident Fund

    ₹21,600

    Profession Tax

    ₹2,400

    Insurance Premium

    ₹3,000

    Special Allowance

    ₹1,40,000

    Total (B) = ₹27,000 (Sum of all deductions)

    Now, you will have to just subtract the gross salary with the total of all deductions.

    Net Salary = Total (A) – Total (B)

                      = ₹ (3,50,000 - 27,000)

                      = ₹3,23,000

    So, the net pay of Arpit is ₹3,23,000

    What Are the Factors Influencing the Calculation of Net Salary?

    The calculation of net salary depends on the following factors mentioned below.

    • Country: Salary structure varies with each country based on the various socio-economic factors. Hence, the salaries in the USA will not be similar to that of India.
    • Company: Salaries are primarily based on a firm’s policies and turnover. It also depends on the product and its demand and supply. For example, the salary offered by TCS will not be the same as that of a salary offered by a start-up. This will affect the net pay as well.
    • Industry sector: Salary structure varies from one market sector to another. For instance, the salary in a BPO will be different from the one offered by a media firm. Accordingly, it will impact your net salary calculation as some firms may not pay certain benefits not paid by another firm.
    • HR policies of a company: Policies made by an HR of a firm also impact pay structure. In some companies, the pay structure can be very employee-centric, like having a higher basic pay and a range of employee benefits.
    • Employee designation: Finally, your designation and job role will also impact a pay structure. For instance, the CTC offered to a software developer will differ from the CTC offered to a Lead Developer. Thus, the net pay will also vary.

    What Are the Components of Net Salary?

    Net pay is the amount after various deductions like PF, Income Tax, etc. We have mentioned the sum total of gross salary is to be deducted from eligible deductions to get the net pay.

    The components that get deducted from the gross salary include:

    • Employee’s PF Contribution
    • Professional Tax (state-specific)
    • Income Tax or TDS

    Now, net salary is the take-home part after the following deductions as mentioned above. However, some of the components like incentives and overtime payments are variables and not fixed.

    Is Net Pay Essential to Apply for Loans and Insurance?

    While assessing your income, a bank will consider net pay and not gross pay. After reviewing your take-home salary, a bank will approve loans.

    In the case of loans and insurance, one has to pay EMIs or a certain premium. To be able to pay them will require financial stability through a substantial in-hand salary. Thus, a take-home salary is critical to a loan or insurance application and not a gross salary.

    That’s all for now! Knowing about net salary is very critical. We are sure that you are now completely aware of net pay, its calculation and its importance.

    Frequently Asked Questions

    Is net salary different from take-home salary?

    Net salary is not different from take-home salary as both indicated to the figure you take home after all tax and other applicable deductions are done.

    Net salary is not different from take-home salary as both indicated to the figure you take home after all tax and other applicable deductions are done.

    Is TDS deducted from take-home salary?

    TDS stands for tax deducted at source. It is deducted from your gross pay along with all other applicable deductions. After subtracting all these, you arrive at your net salary or take-home salary.

    TDS stands for tax deducted at source. It is deducted from your gross pay along with all other applicable deductions. After subtracting all these, you arrive at your net salary or take-home salary.

    Please try one more time!

    Request URL:
    Status Code:
    Request Payload:
    Response Data:

    Other Important articles

    Standard Deduction on Salary

    What Is Gratuity in Salary?

    What is Gratuity Act?

    7th Pay Commission

    What Are the 7th Pay Commission Leave Rules in India?

    What is Basic Salary

    What is Gross Salary

    What is Discretionary Bonus

    Difference Between Gross Salary and Net Salary

    What is Double Taxation Avoidance Agreement (DTAA)?

    City Compensatory Allowance

    Dearness Allowance

    Per Diem Allowance

    Travel Allowance

    Leave Travel Allowance

    Difference Between Real Income and Nominal Income

    What is Net Salary

    What is Medical Allowance in Salary?

    What is Variable Pay?

    What is Real Income?

    Show more

    Important Articles related to Finance

    Employee Provident Fund

    EPF Registration Process

    How to Withdraw EPF Online

    Atal Pension Yojana Calculator

    How to Change Details in Atal Pension Yojana Scheme

    How to get Atal Pension Yojana Statement

    How to Close Atal Pension Yojana Account

    Sukanya Samriddhi Yojana

    How to Open Sukanya Samriddhi Yojana Account

    Sukanya Samriddhi Yojana Calculator

    What is Public Provident Fund?

    How to Open PPF Account?

    How to Check PPF Account Balance?

    Eligibility Criteria to Open PPF Account

    Types of PPF Forms

    How to Withdraw PPF Online?

    How to Invest in PPF?

    Financial Planning for Salaried Employees

    Importance of Financial Planning

    Financial Planning Tips for Women

    How to Apply for Atal Pension Yojana?

    What is UAN Number?

    How to check EPF Balance

    KVP Calculator

    Voluntary Provident Fund

    Difference between EPF and EPS

    How to Check Sukanya Samriddhi Account Balance?

    Investment Planning Guides

    Professional Tax in India

    Show more

    Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

    Download Digit App

    close
    1. Digit Insurance
    2. Finance
    3. Salary Structure & Other Information
    4. Net Salary

    Last updated: 2023-06-02

    Digit
    • about
    • contact
    • career
    Products
    • Car Insurance
    • Bike Insurance
    • Travel Insurance
    • Health Insurance
    • Property Insurance
    • Shop Insurance
    • Group Health Insurance
    • Arogya Sanjeevani Policy
    • Commercial Vehicle Insurance
    • Super Top-up Health Insurance
    • Flight Delay
    • Health Insurance for Disabled & HIV/AIDS Patients
    Resources
    • Blog
    • Press
    • Download Policy
    • Grievance Redressal Procedure
    • Cancel e-Mandate
    • Check Digit Policy Status
    • Bima Bharosa (Earlier Known as IGMS)
    Agent & Partnerships
    • Become an Agent
    • Become Digit POSP
    • Garages claim intimation
    Services
    • Claims
    • Renewals
    • Digit Cashless Garages
    • Digit Cashless Hospitals
    Get our app
    Download man
    App Store Google Play

    Other Products
    • Fire Insurance
    • Burglary Insurance
    • Building Insurance
    • Bus Insurance
    • Tractor Insurance
    • Commercial Van Insurance
    • Passenger Carrying Vehicle Insurance
    • Heavy Vehicle Insurance
    • Goods Carrying Vehicle Insurance
    • Activa Insurance
    • Jupiter Insurance
    • Bullet Insurance
    • Student Travel Insurance
    • Schengen Visa Travel Insurance
    Health Insurance Guides
    • Individual Health Insurance
    • Family Health Insurance
    • Health Insurance for Parents
    • Health Insurance Premium Calculator
    • Compare Health Insurance
    • Health Insurance for Senior Citizens
    • Health Insurance with Maternity Cover
    • Corona Kavach Policy
    • Corona Rakshak Policy
    • हेल्थ इन्शुरन्स
    • फैमिली हेल्थ इन्शुरन्स
    Car Insurance Guides
    • Third Party Car Insurance
    • Comprehensive Car Insurance
    • Zero Depreciation Car Insurance
    • NCB in Car Insurance
    • IDV Calculator for Car
    • Bumper to Bumper Car Insurance
    • Car Insurance Calculator
    • Own Damage Car Insurance
    • Comprehensive vs Third Party Insurance
    • Compare Car Insurance
    • Find Vehicle Registration Details Online
    Bike Insurance Guides
    • Third Party Bike Insurance
    • Comprehensive Bike Insurance
    • Zero Depreciation Bike Insurance
    • NCB in Two Wheeler Insurance
    • IDV Value Calculator for Bike
    • Add-on Cover in Bike Insurance
    • Bike Insurance Calculator
    • Own Damage Bike Insurance
    • Comprehensive vs Third Party Bike Insurance
    • Compare Bike Insurance
    • Royal Enfield Insurance
    • TVS Insurance
    • Hero Bike Insurance
    Other Guides
    • Types of Insurance
    • Types of General Insurance
    • Types of Motor Insurance
    • International Driving License
    • Visa on Arrival for Indians
    • Visa Free Countries for Indians
    • Comprehensive vs Zero Depreciation
    • Coronavirus Health Insurance
    • Coronavirus Symptoms Checker
    • Indian Passport Rank
    • Digit Illness Group Insurance
    • Hero Splendor Insurance
    • Access Insurance
    • Scooty Insurance
    Calculators
    • SME Buddy Calculator
    • Home Loan EMI Calculator
    • Bike Loan EMI Calculator
    • Car Loan EMI Calculator
    • HRA Exemption Calculator
    • Sukanya Samriddhi Yojana Calculator
    • SIP Calculator
    • RD Calculator
    • SWP Calculator
    • GST Calculator
    • PPF Calculator
    • Personal Loan EMI Calculator
    • EMI Calculator
    • Individual Income Tax Slab
    • Tax Saving Options other than 80C
    Finance Guides
    • What is Credit Score
    • Public Provident Fund
    • How to Open PPF Account?
    • How to open Sukanya Samriddhi Account
    • What is GST?
    • GST Registration in India
    • PAN Card
    • Aadhaar Card
    • Property Tax
    • Road Tax
    • Passport Process
    • Income Tax Slabs
    • How to Save Income Tax in India
    • Tax Deductions under Section 80C
    Traffic Rules
    • PUC Certificate
    • Vehicle Registration Certificate
    • New Traffic Fines
    • Fine for Driving without Helmet
    • Types of Driving Licence in India
    • Driving Licence in Delhi
    • Driving Licence in Bangalore
    • Driving Licence in Jaipur
    • Bangalore Traffic Fines
    • Pune RTO Fine
    • Own Damage Insurance
    Business Products
    • Business Insurance
    • Management Liability Insurance
    • General Liability Insurance
    • Workmen Compensation Insurance
    • Fidelity Insurance
    • Professional Liability Insurance
    • Money Insurance Policy
    • Sign Board Insurance
    • Plate Glass Insurance
    • Erection All Risk Insurance
    • Contractors' All Risks Insurance
    • Directors and Officers Liability Insurance
    • Marine Cargo Insurance
    • Contractors Plant and Machinery Insurance
    RTO Offices in India
    • RTO Office
    • RTO Pune
    • RTO Ahmedabad
    • RTO Bangalore
    • RTO Mumbai
    • RTO Delhi
    • RTO Lucknow
    • RTO Thane
    • RTO Chennai
    Important Links
    • Digit Insurance Reviews
    • Car Insurance Reviews
    • Bike Insurance Reviews
    • Commercial Vehicle Insurance Reviews
    • Travel Insurance Reviews
    • Health Insurance Reviews
    • Mobile Insurance Reviews
    • Become a Digit Partner
    • General Insurance Agent
    • Health Insurance Agent
    • Motor Insurance Agent
    Car Brands & Models
    • Maruti Insurance
    • Toyota Car Insurance
    • Tata Car Insurance
    • Hyundai Car Insurance
    • Kia Car Insurance
    • Mahindra Car Insurance
    • Tata Tiago Insurance
    • Tata Nexon Insurance
    • Hyundai i20 Insurance
    • Creta Insurance
    • Baleno Insurance
    Downloads Do Not Disturb (DND) Public Disclosures Investor Relations Stewardship Policy IRDAI Privacy Policy

    CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.

    Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.