The new wage code mandates that your basic pay should be at least 50% of the total cost to the company (CTC).

However, after taxes, $15 per hour would be reduced to around $11.88 to $12.84 (depending on the state you live in). That means that after taxes your annual salary would be $24,700 – $26,700 per year. Your total take-home paycheck could be: Hourly pay= $11.88 to $12.84.

As an example, an hourly-waged employee making $15/hour and working 80 hours per pay period has a gross pay of $1,200 (15 x 80 =1200). But, after deductions the employee’s take-home pay is $900, the employee is earning $11.25/hour as a take-home rate (900/80=11.25).

Basic salary is the base income of an individual. Basic salary is the amount paid to employees before any reductions or increases due to overtime or bonus, allowances (internet usage for those who work from home or communication allowance).

Take Home Salary = Gross Salary – Income Tax – Employee’s PF Contribution(PF) – Prof. Tax. Gross Salary = Cost to Company (CTC) – Employer’s PF Contribution (EPF) – Gratuity.

The changes linked to the salary are what should concern you the most. As of now, 20-40 per cent of your CTC forms the basic salary. If your basic pay goes up, all salary components linked to your basic pay such as EPF and NPS contribution and gratuity will be revised upwards.

30 Ways to Increase Your Take-Home Income

1. Adjust W-4 Exemptions.
2. Increase 401(k) Contributions.
3. Stop Your 401(k) Contributions.
4. Negotiate a Raise or Bonus Opportunity.
5. Adjust Your Health Care Plan.
6. Get Paid for Working Overtime.
7. Change Jobs.
8. Request Reimbursement for Work-Related Expenses.

The more allowances you claim, the less income tax is withheld from your pay. Fewer or zero allowances mean more income tax is withheld from your pay. To put it another way: More allowances equal more take-home pay and money in your pocket.

Your hourly wage of 3 dollars would end up being about $6,240 per year in salary.

“At most companies, there are 26 bi-weekly payments in a year. A $10,000 raise divided by 26 equals approximately $385 before taxes.