Net Salary Calculation (See How to Do It and Get Your Questions Answered)

Net Salary Calculation: find out what should be considered in this calculation. 

A very common question among workers is about gross salary and net salary. Many do not know the difference between the two terms. 

Furthermore, they also do not know how net salary is calculated, that is, where or what should be discounted to arrive at the exact amount.

In today's text you will discover the difference between net and gross salary, bonuses, and you will also find some tips for saving money when earning little and digital accounts to save your money.

Don't miss out!

What is the difference between net salary and gross salary?

Gross salary is the employee's total remuneration, that is, without any discounts. While net salary is the employee's remuneration with discounts. 

There are two mandatory discounts provided for by law: IRRF and INSS, in addition, the following may be applied to the salary: FGTS discounts, ticket, private pension, health plan, among others, agreed with the company.

The percentage of INSS discounted can vary between 8%, 9% and 12% and 14% of the salary value.

Income Tax, in turn, depends on the salary, and there is a ceiling to start declaring, in fact, the amount can be detailed every month, once a year or at least twice a year.

Apart from that, there are still other types of factors that can influence the net salary calculation such as absences, delays and overtime.

However, net salary is not only the result of discounts, but also of additional payments. Therefore, if you have any additional payments such as overtime or night shift pay, you must include them in the calculation.

Net Salary Calculation: How to do it?

There is no secret when it comes to calculating this. To get an exact value, you need to know the gross salary, the number of discounts and additional payments.

Discounts are subtracted and additional amounts are added to the gross salary. 

To give you an example, we used the calculator available on the blog Idinheiro.com.br. See below the calculation we performed:

Gross salary	Discounts	Number of dependents	Results
R$1,600.00	R$300.00	2	R$1,175.53

Detailed result:

The number of dependents influences the calculation of IR withheld at source, however, the amount reported in the simulation is exempt from this discount, therefore, the number of dependents made no difference.

When you are hired, your gross salary is given during the job interview to see if you agree to receive it.

Anyone with experience in the job market knows that, in practice, they will not have this gross amount in hand, due to discounts.

You will only have the net salary, which is the value of the boruto minus the discounts, as already explained in the previous topic.

The discounts that will be applied to your salary are also informed by the company at the time of hiring, so that you are not caught by surprise.

Therefore, you know that you will have the mandatory discounts provided by law and also other discounts.

In the table below, you will find out what percentage of INSS will be deducted from your gross salary.

It can vary depending on the salary, those who earn more pay a higher rate. The table is updated with the minimum wage up to April 2023.

Contribution Salary	INSS tax rate (%)
up to 1,302.00	7,5%
1,302.01 to 2,571.29	9%
2,571.30 to 3,856.94	12%
3,856.95 to 7,507.49	14%

Income Tax, as far as you are concerned, is discounted according to a rate table published by the Federal Revenue Service.

The table has not been updated since 2015, but it has been changed this year. People with salaries up to R$1,640.00 are exempt from the declaration.

So, the net salary calculation could it be: gross salary – discounts – INSS discount – IRRF discount + additional = net salary.

How can I save money?

Income Tax is not a common discount for millions of Brazilians, because many are exempt from this tax due to their low salary. 

Currently, more than 34 million Brazilians receive up to a minimum wage. Therefore, a question remains: How can you save money when you earn so little? 

Certainly, a person who earns a minimum wage finds it very difficult to save money, although it is almost impossible and impossible depending on your condition, we have some tips that may be helpful.

Follow!

1. Find extra income

Basic basket: R$700.00

Rent: R$600.00

Electricity bill: R$200.00

Water bill: R$70.00

Total: 1,570

These are the basic expenses of a Brazilian family and the average cost of each of them. In some states or households, the amounts may be even higher. But we will use this sum as an example.

As we can see, the sum exceeded the minimum wage. If the person in our example is Paulo, let's call him.

If Paulo doesn't have anyone to share these expenses with, he's certainly behind on his bills, taking money from his basic food basket to pay his energy bill and is heavily in debt.

How are we going to tell Paulo to save if his salary isn't even enough to cover his basic expenses?

It would even be offensive!

Therefore, the first recommendation for anyone who wants to save money by earning only one salary is to look for a extra income.

There are many ways to earn extra income, and today it is easier than before, because we have technology at our disposal.

Search the internet for ways to earn extra money. You will find many great suggestions to put into practice.

In fact, many of them do not require any investment.

However, beware of scams and miraculous promises. Always be suspicious, especially when making a deposit to pay for a course or training.

With extra income, you will be able to loosen your budget and from there, save to save.

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2. Start small

Don't wait to earn a ton of money to start saving, or you'll never do it. Start small. 

You won't get rich, but you'll get into the habit of saving, and as they say, little by little the hen fills her beak.

There is a Bible verse that says: whoever is faithful in a little is also faithful in much; so, start by saving a little, so that one day you will have the opportunity to save a lot of much.

Do you understand?

3. Invest in your career

I continue trying to follow the line of not advising you to save, because a person who survives on a minimum wage saves involuntarily and is already deprived of many things, even quality of life. 

So, what else can you do to save money even if you earn minimum wage?

You should invest in your career to get a better job and earn more.

Don't have a high school diploma? Take a supplementary course.

Have you finished your studies? Take a professional course.

Don't have money to pay for courses? That's an excuse.

Many people don’t realize the amount of top-notch free courses there are on the internet. 

With a course on your resume, you can get a better job, get promoted or even work for yourself.

So, what course should I take to improve my CV?

It is important to choose technical courses that can be useful in different areas, for example:

• English;
• Excel;
• Power BI;
• Computing;
• Communication.

Where to do it?

• Bradesco Foundation;
• Prime Courses;
• Google;
• Sebrae;
• Anbima;
• Primecourses;
• FGV;
• Educate More Brazil;
• EDx;
• Coursera;
• Getulio Vargas Foundation;
• Paula Souza Center;
• Beca Santander Studios.

These are just a few examples, the real number of platforms for taking free online courses is much greater.

With a good course, you can change jobs or get promoted, and thus earn more to save.

The job market is very competitive, so to get ahead, you need to have something different.

4. Have financial planning

Financial planning is not for rich people or those who earn well. This tool should be mandatory for those who earn little. 

Make a financial planning monthly to identify savings opportunities, understand your expenses and also to know your finances.

It is very important to have control over your money, give it the attention it deserves, even if it is little.

It doesn't matter if you earn 1, 2, 3 minimum wages, learn to manage your money and have a good relationship with it, even if it is always gone at the end of the month.

Try to include strategies for saving, economizing and paying off debts in your financial planning.

As I said before, start small, a little here, a little there. To make this practice more valuable, you can let your money earn interest.

There are many digital accounts where you can save money without a minimum limit, and best of all: with automatic income from the balance.

Find out below!

Digital accounts to save money

Since we are talking about small amounts, you can leave it in the balance of some digital account earning interest, and when you have a good amount, invest the money. 

However, many of these digital accounts also offer investments with a minimum investment starting from R$1.

Can you save R$$1 per month to invest? Are you up for the challenge?

You won't get rich by saving such a small amount each month, nor will you retire at 40.

However, you will create the habit of saving and investing, and over time, you will want to save more and more.

Let's take a look at some digital accounts that give you the freedom to save any amount in the account or that offer investments with low investments.

Other than that, they are also great options for receiving your salary through salary portability.

By receiving your salary in a digital account, you will have easier access to credit solutions, among other products.

Discover 4 options digital accounts to make money grow

PicPay

At PicPay, your money earns 102% of the CDI. You can also choose to keep your money saved in the Caixas. 

The income is the same, but the money is separate from the balance. The PicPay digital account is free and offers customers different tools to earn extra money, such as:

• Referring friends;
• Coupons;
• Scanning invoices;
• Cashback on purchases and bills.

Download the app and open your account.

 Nubank

At Nubank, your money saved for more than 30 days has a yield of 100% of the CDI. If you want a higher yield, you can leave the money saved with Scheduled Withdrawal. 

You can also choose an investment with a low initial investment or leave the money saved in the Caixas.

The Nubank digital account is also free, it doesn't have any means of earning extra money, but it is a great alternative for those who want a loan to organize their finances.

The credit card is considered one of the best on the market, being approved even for those with bad credit.

Pay Recharge

With Recarga Pay, your balance from R$ yields 102% of the CDI. The digital account is free and offers many advantages to its customers, for example: 

• Cashback of up to 27%;
• Pix with credit card;
• Loan.

It does not have an investment platform, but it is a good alternative for those who want to save money and earn interest.

PagBank

PagBank has no annual fee and offers a yield of 100% of the CDI for the balance held for more than 30 days. 

This is a great digital account for anyone who owns a business, as it offers some services and features for the entrepreneur, such as a card machine and different payment methods.

In addition, it offers different investment options, some with initial investments starting at R$1 or R$500.

We only quote 4 suggestions for digital accounts to keep your money safe, but there are still many great options on the market, and free ones, for example:

• Digio;
• Neon;
• Inter;
• Next;
• Original;
• 99Pay;
• C6 Bank.

Conclusion

In this text you discovered more details about the net salary calculation. He also realized that the subject is very simple and there is no secret to doing it. 

So, let's recap?

To calculate your net salary, you need to know the gross salary value, discounts, percentages and additional amounts.

From the information, you will have the calculation and exact value of your net salary. 

If in doubt, use the calculator we left in the first topic to do your simulation. If you are unable to do it and have any questions about the subject, go to the company's HR department to clarify them.

Of course, it is essential to know the calculation to identify when an incorrect amount is deducted from your payment, for example.