A Net Salary CalculatorUK gives you information on the salary through an online application. Several websites employ information on salary utilizing this function to give information on this data when city, state, search term and zip code are entered as an input. When a job title is selected, the salary information related is displayed as a graph by this application.
Uses of a Net Salary CalculatorUK:
- Pay raise negotiation
- Salary evaluation
- Salary after Tax income deduction
What does a salary slip include?
A pay slip or a salary slip which is generated each month by the employer through mail or paper can be divided intoGross pay or Income and Deductions primarily.
Components of a Pay Slip
Under income of the pay slip are:
- Basic Salary-This is the primary component of the pay that includes around 30-40 percent of the overall salary. The other components are determined on this basic income.Basic salary is totallytaxable in your hands.
- Dearness Allowance– An allowance that is provided inorder to minimize the inflation effect on the employee.
- House Rent Allowance (HRA)-This is an allowance that is provided to employees for rental expenses.This assists in paying house rent. It is dependant on the spot of the residence rented and is generally around 40-50 percent of the basic income.
- Conveyance Allowance-This covers the travel costs of work to home and home to work.This aids in commuting expenses of the employee.
- Leave Travel Allowance-This allowance is provided to cover up the travel costs for family members of the employees and the employees as well whenever on leave.
- Medical Allowance-The medical expenditure is covered within this allowance as long as they are employed with the employer providing the allowance. This is not paid initially but reimbursed when medical bills and other reciepts are submitted to themin a stipulated time frame.
- Special Allowance and Performance Bonus-It is an allowance to encourage employees.
- Other Allowances-There are numerous additional allowancesfor various reasons.This allowance varies from one company to the other.
- Provident Fund-PF-This is a contributionmadeby the employee which is compulsory for a PF account.
- Professional Tax-This is a tax amountwhich is set up on the employee’s tax slab.
- Tax Deductible at Source TDS-This is cut by the employer from the salary of the employee by the department of the income tax.Each month, a particular amount is deducted from the salary. To minimize the tax that is placed on your salary, there are schemes available for tax savings. The documents of the tax saving investments are submitted to the employer so as to revise the tax payable.
- Professional Tax –This is a taxplaced by the State Government which is reduced from the regular salary.It is different for different states. Some states do not have professional tax.
Net Salary Calculator UK aids in assessing the income and deductions accurately and displaysthem for efficient analysis of your income to make your investments and spend in a better way.