Formula to Calculate Gross salary
Following are the formula for calculating the Net salary:
Gross salary = Basic salary + HRA + Other allowances
Difference between Net Salary and Gross Salary
Net Salary and Gross Salary: Gross salary is the total amount received by an employee without any tax deductions whereas Net salary is the total amount of money that an individual takes home after all kinds of deductions have been taken out. You can calculate it by the following formula given by Net Salary = Gross Salary – All kinds of deductions such as income tax, pension, etc. You can say “Net salary is the take-home salary”.
A salaried individual must have come across gross Pay and net pay terms. For new joiners Managing payroll becomes an overwhelming task. So having an idea about these terms helps in negotiating as well as avoiding HR mistakes that startups generally make.
In this article, we have covered Net pay and gross pay, different types of salary, payroll, and income, and formulas for calculating your in-hand salary, and more.
Difference between Net salary and Gross Salary