Quick Answer: What Do You Mean By Take Home Salary?

What is fixed pay in CTC?

Fixed pay is the fixed amount of salary that an employee gets at the end of the month whereas Variable pay is the incentive paid to the employee, monetary or non-monetary, based on their performance for the month..

What is meaning of take home salary?

Take-home pay is the net amount of income received after the deduction of taxes, benefits, and voluntary contributions from a paycheck. It is the difference between the gross income less all deductions. … The net amount or take-home pay is what the employee receives.

What is the meaning of take home?

take-home(verb) (of salary or wages) remaining after all deductions including taxes. take home, bring home(verb) earn as a salary or wage. “How much does your wife take home after taxes and other deductions?”

What is another word for take home pay?

What is another word for take-home pay?profitsearningstakingswagesremunerationstipendemolumentwagepaymentcompensation227 more rows

Is net income before or after taxes?

Gross income is the amount you earn before taxes and other payroll deductions. Net income is your take-home pay after taxes and other payroll deductions. Your net income, the amount on your paycheck, is what’s used to make your budget.

What does net payment mean?

Net pay definition Net pay is an employee’s earnings after all deductions are taken out. Obligatory deductions such as the FICA mandated Social Security tax and Medicare are withheld automatically from an employee’s earnings. Other deductions come in the form of benefits, which may be optional.

Is it good to have more basic salary?

A higher basic would mean a higher HRA, DA and provident fund contributions. The DA is taxable and the PF contributions are tax-free but will reduce your take-home salary. On the other hand, reducing basic pay will mean a lower contribution towards retiral benefits, which may not be good in the long run.

What is actual salary?

Actual Salary means the regular basic compensation paid or payable to an employee during a calendar year by the Company or an Affiliate (including tax-deferred.

Is PF part of CTC?

Most employers contribute 12% (called PF) of basic salary every month to employee’s Provident fund account, shown in CTC. An employee also contributes 12% (called VPF). Difference between Employer PF, Employee PF (Called VPF) and PPF. Employer PF is part of CTC not shown on Salary Slip.

What is fixed salary?

Fixed monthly salary = basic monthly salary + fixed monthly allowances. Basic monthly salary: This is payment that does not vary from month to month, regardless of employee or company performance, and regardless of whether the employee takes medical or personal leave.

How is fixed pay calculated?

Fixed pay is what is defined and fixed and you will get the same salary which was stated in the letter of salary structure. Your package = Fixed Pay(X% of total package) + Variable pay(100-X% of total package). So Variable pay is the part of your salary package .