Net salary is defined as the amount paid to you after deducting recoveries such as insurance, provident fund, and health insurance.

Net salary is defined as the amount paid to you after deducting recoveries such as insurance, provident fund, and health insurance.

• A. The amount paid to you after deductions for recoveries like insurance and health benefits.
• B. The gross salary before any deductions.
• C. The total earnings including overtime.
• D. The amount withheld for taxes only.

Answer: (A)

Net salary is the amount you actually take home after subtracting deductions such as insurance, provident fund contributions, and health insurance from your gross pay. The idea is that net pay equals gross pay minus all these deductions, often called recoveries. The choice describing the post-deduction amount with examples like insurance and health benefits matches this concept exactly. In contrast, gross salary refers to what you earn before any deductions, total earnings including overtime is also a gross figure, and withholding taxes are only one type of deduction among several.

Net salary is the amount you actually take home after subtracting deductions such as insurance, provident fund contributions, and health insurance from your gross pay. The idea is that net pay equals gross pay minus all these deductions, often called recoveries. The choice describing the post-deduction amount with examples like insurance and health benefits matches this concept exactly. In contrast, gross salary refers to what you earn before any deductions, total earnings including overtime is also a gross figure, and withholding taxes are only one type of deduction among several.