Is It Possible That My Net Take Home Is Lower Than My Basic Salary ? - CiteHR
Partner - Risk Management
Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Talent Acquisition Expert
Sovik Bhattachaerjee
Md- S.s Enterprise
Loginmiraclelogistics & Management) Pg
Consultant In Legal Matters
Sr Manager Hr & Administration
+2 Others

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Is it possible that my net take home is lower than my basic salary ? I have not taken any leaves nor I have any loan against my name. As far as I know it is not possible but my HR is challenging that it is possible.
Mahib_ul: Basic here means the basic component of your salary structure right? If that is so, then no.
yes, if a month salary is 25,000/- and you have joined on say middle of the month(even a day less than a month or working days with acceptable leave etc.,) , the net salary is certainly less than your basic. However, the things could not stand value if you have served for a whole month the net salary will not certainly less than this, provided taken loan, lop etc., any how, you have a greatest mind in HR be careful.....
Deduction from salary can not exceed 50% of gross (75% where deduction includes payments to empl. coop)
If your basic is more than 50% of gross salary and deduction is max then take home can fall before basic.

Are you a beginner or Sr. ? A wild guess, Supposing, you absented for over long period, naturally your earning will be pittance at the same time you will have other deductions like-(if official qrs./leased acco. is provided by the co.) HR-, court attachments, other recoveries (all a fixed amount) if any etc. aggregated may run into more than your fixed basic salary and your net take home could be (-).
I have been present for the whole month and the lower salary has come in regards to the new deduction rules.. my basic salary was 6500 previously, and now my basic has been revised to 15000 and my take home earlier was 13000 and now my take home is 12500, let me know if this is possible... my HR is still challenging to show me rules or laws regarding it to prove her wrong.
Dear Can u provide me your gross Salary so that we can give correct The possible is IT deduction, PF/ESI/WC or any other statutory deduction Can happen
A rigid ion of salary by 8500 can not result in reduction of take home salary by 500, even considering the new PF rules. The impact of PF increase is limited to ₹1020 (or ₹1800 If you were earlier not covered by PF)
You do not need any law or rule in the act to say this is not possible. You got salary slip I hope. Check the comparison of components. What appears to have been done is to restructure the salary components to avoid PF. Then this is something for which the company can get into severe trouble.

can you give the details of the salary breakup for comparison i.e. the previous one and the current one to the forum so as to give you appropriate view.
Saswata da,

Rectify me if I am salary can be lower then take home salary.....I am saying this from my practical experience as a management professional, competent in laws & accounting cum financial audits..

Like say, if someone have asked management to deduct more in PF account contribution, then funds MAY BE transferred from basic into PF a/c, thus net salary lower then basic......


Say, some item of salary may be present for which management has done TAX DEDUCTION at source......thus net salary may become lower then gross.........

many loop holes are there............I think we should advise the guy either to provide the details of PAY SLIP so that we can provide some concrete reply or can advise the guy to meet a Chartered Accountant or Company Secretory in practice, provide him details of his salary of min 1 year, then request him to use provide a certificate of his analysis. Thus if there is any mistake , CA/CS can detect & point out.......and certificate must be ratified by the membership no of CA/CS with ICAI/ICSI & signature.

An experience auditor knows what to write in such certificate.....hope you understood.......

And I am pretty sure, HR cant challenge a qualified auditor without a valid reason(S)....... Thus either explain the pay slip to employee or accept the ratified certificate of qualified CA......Gentle Mans solution.........

Thanks & Regards

Sovik B

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