Payslip Format India – Earnings, Deductions & Leaves

Payslip

A payslip also called a salary slip is a document issued by an employer to its employees. A Payslip contains a detailed breakdown of monetary components of the employee’s salary, all earnings and deductions for a given period. This period is generally a monthly cycle. A company is legally bound to issue a Payslip to its employees.

A Payslip can either be printed hard copy or e-mailed to the employees (mostly preferred in recent times). The employees can then download them as the need arises.

Components of a Payslip

It is made up of the monetary components in a salary. It includes:

Earnings like:

  • Basic pay
  • Dearness Allowance
  • House Rent Allowance
  • Medical Allowance
  • Conveyance Allowance
  • Other Allowances provided by the organization

As reduced by,

Deductions like:

  • Provident fund contribution
  • Employee State Insurance contribution
  • National Pension Scheme contribution
  • Tax Deducted at Source
  • Professional Tax
  • Other deductions made from the salary

Importance of Payslips

  • Helps the employee understand the breakup of salary
  • Informs the employee of the monetary benefits derived from the employment
  • It shows you the number of days worked and the days considered as Loss of Pay(LOP) to cross-check with the salary received. Payslip helps you sort out discrepancies if any.
  • Payslip acts as legal proof of income for an employee.
  • It also provides proof of employment.
  • The employees are aware of their contributions towards social security’s such as Provident fund, Employee State Insurance, wherever applicable.
  • It is a ready reckoner for your Universal Account Number (UAN) and Permanent Retirement Account Number (PRAN) (OfficeAnywhere Payroll lets you enable this option)
  • It shows the portion of employee’s contribution towards Income Tax (in the form of Tax Deducted at Source- TDS) and Professional Tax, wherever applicable.
  • It acts as proof of the document when applying for loans and mortgages.
  • Application for credit cards requires 2-3 month’s payslips.
  • It also helps in negotiating for a salary hike when applying for a new job opportunity.
  • Considering all the above, it aids you plan your finances of investments and expenditures for the times to come.

Payroll Payslip