Have you ever heard of net salary? Currently salaries are known as gross salary and net salary.
The net salary is basically the value that the worker will actually receive for carrying out his work in a company. This amount already considers discounts such as INSS and income tax, which are mandatory. The other values depend on the benefits given by the company to the workers.
These benefits can be the following:
- Food allowance;
- Transportation vouchers;
- Health plan;
- Other benefits.
As a worker, it is essential to pay due attention to all discounts that are made from gross salary. The gross salary is the one whose value is the same as in the work portfolio.
This is to let you know what amounts are being charged and if they are really correct. It is also important to remember that discounts such as income tax and INSS may vary, depending on the worker’s gross salary.
In this content you will understand what net salary is, how it is calculated, which benefits offered by the company can be discounted and much more. Keep reading to check it out.
What this article covers:
What is net salary?
Net salary is the money that the worker will receive after deducting all mandatory benefits and amounts from the gross salary. The gross salary is the one that appears in the employee’s work card.
The question that has been raised a lot is why companies inform the gross salary in the work booklet and not the amount that the worker will actually receive. The answer to this is that there are mandatory discounts such as Social Security (INSS) and Income Tax (IRRF). These values must be considered as well as the benefits that the company offers to the employee.
How is net salary calculated?
Due to the rules of the labor market, the total discounted amount and even all the information that is on the company’s paycheck can in fact confuse the employee.
Therefore, it is very important to have access to how the net salary is calculated so as not to create confusion. Check it out below:
- In a net salary calculator enter your gross salary;
- Enter the number of dependents;
- List all discounts;
- Calculate everything.
It is not difficult to do all the calculation. Currently, it is possible to rely on online tools to calculate net salary. With a quick Google search or another search tool, you can find a net salary calculator.
Another simple way to calculate net salary is to subtract all deductions from the gross salary that was agreed upon. This includes mandatory INSS and IRRF discounts.
What is deducted from net salary?
The IRRF (Income Tax) is withheld directly from the source. It is deducted directly from the gross salary, however, this amount does not correspond to the total that needs to be paid to the public coffers.
Therefore, when making the income tax return, the worker must inform that he has already made his contribution in addition to the other information. That way you can find out if you need to make any payments.
In addition, other deductions from net salary are the INSS (Social Security) which is another mandatory payment and some other benefits given by the company to workers.
What benefits can be deducted from net salary?
We know that the net salary is the total amount that the employee will receive after deducting all taxes and some benefits. Check below which are the benefits that can be deducted from the net salary.
- Transportation assistance;
- Food assistance;
- Health plan;
- Social Security;
- Other benefits.
This will depend on the benefits the company offers and their total value.
Thus, you are already aware of what the net salary is, what can be deducted and what is the difference between it and the gross salary, so always pay attention to your paycheck to verify that all information and deductions are correct, and if not, look for the responsible sector at your workplace.