TankhaPay Blogs

Written by admin • October 13, 2023 • 7:31 am • Employee Support • 2 Comments

Salary Slip – Format in Excel, Word, and PDF (Download Payslip)

Salary Slip Format Excel

Table of Contents

The salary slip, also known as a payslip, serves as an official document outlining an employee’s earnings and deductions. Each month, employees receive pay slips from their employers, detailing essential information such as the company’s name, the employee’s designation, location, and bank details.

Within the salary slip, there are key components. Earnings, including basic pay, dearness allowance, house rent allowance, medical allowance, and special allowance, are outlined. Additionally, deductions such as professional tax, tax deduction at source, and employee provident fund are also specified. It’s important to note that these details can vary from one company to another.

In this blog, we’ll delve into the significance of the salary slip or pay slip, explaining its importance in the financial context. We’ll also provide insights into how to create a simple salary slip format using Excel, a commonly used tool for such tasks. Furthermore, we’ve curated various salary slip formats in Excel, Word, and PDF for your convenience, ensuring you have a range of options to choose from.

What does Salary Slip mean?

A salary slip can be defined as a document that contains the details of an employee’s salary. These details include the basic pay, bonuses, deductions, etc., that are given to the employee every month by the employer. The employees often get soft copies of the same and sometimes are given hard copies as well.

EXCEL FORMAT OF SIMPLE SALARY SLIP

The structure and contents of a payslip or salary slip may vary based on the company or the location.

sample of salary slip format

Download Different Simple Salary Slip Formats

Components of salary slips or pay slips format.

Every month, employees receive their salary slips in PDF formats , yet comprehending the intricate details of a salary slip often proves challenging. It’s not just a document for loan applications; it holds substantial importance in various aspects of financial management.

  • Informed Job Switching: Understanding your salary slip empowers you to compare job offers effectively. By deciphering the components, you can make informed decisions when switching jobs, ensuring you get the best deal.
  • Tax Optimisation: A detailed grasp of your salary slip allows you to optimise your tax liability. By identifying the deductions available, you can strategically plan your finances, minimising your taxable income and maximising your savings.
  • Grasping Savings: Within the confusing jargon of a salary slip lie details about your forced savings, such as contributions to the Employee Provident Fund (EPF) and Employee State Insurance (ESI). Understanding these deductions helps you comprehend your overall financial commitments and savings.

​​In the salary slip’s income section, essential components include the Basic, constituting 35-50% of the salary. At junior levels, Basic is higher, while as employees progress, other allowances increase. Organisations often maintain a lower Basic to prevent topping up the allowance pay. Basic, 100% taxable, appears first in the earnings section.

A salary slip isn’t just a list of numbers; it’s a blueprint of your financial dealings with your employer. Mastering its format and components is pivotal for making sound financial decisions and ensuring you’re in control of your earnings and investments.

Basic Salary

This core element serves as the bedrock of an employee’s income structure. While it constitutes a significant portion of the salary, its taxable nature necessitates careful financial planning. At entry levels, basic pay tends to be relatively higher, gradually giving way to other allowances as one climbs the organisational ladder.

Dearness Allowance (DA)

DA is a dynamic component directly influenced by the cost of living adjustments due to inflation. Its variations cater to diverse locations, ensuring fair compensation relative to the local economic conditions. Although taxable, DA attempts to balance the employee’s purchasing power against rising prices.

House Rent Allowance (HRA)

HRA accommodates employees residing in rented accommodations. Its tax exemptions, calculated based on rent paid, provide financial relief. The exemptions, governed by specific percentages and rent-payment criteria, empower employees to optimise tax savings based on their living arrangements.

  • For rented homes: 50% (metros) or 40% (others) of Basic.
  • Tax exemption criteria:
  • Actual rent paid minus 10% of pay (Basic + DA).
  • Actual HRA received.
  • 50%/40% of (Basic + DA) based on city.

Conveyance Allowance

Commuting is a daily reality for employees. Conveyance allowance acknowledges these expenses, offering tax exemptions up to a certain limit. For many, it represents an essential financial relief, making the daily journey to work more financially manageable.

Exempt up to ₹ 1600/month or actually received in earnings.

Medical Allowance

Catering to healthcare needs, medical allowance assists employees in covering medical expenses. Tax exemptions, contingent upon the submission of medical bills, encourage employees to maintain their health and well-being. The allowance underscores the employer’s commitment to employee welfare.

Exempt up to ₹ 15,000/year if proof is submitted.

Leave Travel Allowance (LTA)

LTA is a testament to the employer’s acknowledgement of employees’ need for leisure and family time. Offering tax benefits for travel, LTA fosters a healthy work-life balance. Its block-based calculation aligns with employees’ travel aspirations, ensuring periodic opportunities for rejuvenation.

Special Allowance

Special allowances act as powerful motivators, encouraging employees to excel in their roles. While fully taxable, they signify the organisation’s recognition of exceptional performance. These allowances are often tailored to individual job roles, acknowledging and rewarding specific skills and achievements.

Understanding these components sheds light on your salary slip, demystifying the financial intricacies within.

  • Provident Fund (PF): PF acts as a valuable savings tool for employees, managed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Employees contribute a fixed percentage of their salary, matched by the employer, forming a secure fund managed by the Employees Provident Fund Organization.
  • Professional Tax: This state-imposed tax is levied on all citizens earning income, varying in amount across states. It’s a mandatory contribution that individuals make from their earnings, ensuring financial support for state initiatives.
  • Tax Deductible at Source (TDS): TDS represents the amount deducted from a salary at the source of payment. The entity making the payment deducts this tax, ensuring compliance with tax regulations. The recipient of the income is accountable for this tax, streamlining the taxation process.
  • ESI: Employee State Insurance (ESI) is a social security scheme that safeguards employees during challenging circumstances. ESI deductions are calculated based on the gross salary paid to employees. According to the ESI Act, the employer contributes 3.25% of the wages, while the employee contributes 0.75% of the wages to the contributory fund. This joint contribution creates a financial safety net, ensuring that employees have access to essential benefits and medical care when they need it the most.

Formulas of Salary Slip Format

Below, we have tabulated some of these set Excel formulas of Simple Salary Slip Formats . It will help you to calculate the Gross earnings along with the deductions.

CTC vs. Gross Salary

Here is the fundamental difference between CTC and Gross Salary:

Why are Salary Slips or Pay Slips Important?

Salary slips can be very crucial in the professional world. They serve as the legal proof of you being a salaried employee. It would be of great help to always keep them safe as you would with other significant documents.

Here are some other reasons:

Proof of Employment Pay slips bear the weight of credibility in various official contexts. Whether applying for travel visas, university admissions, or undergoing background checks, a salary slip validates an individual’s professional standing. It not only affirms current employment but also delineates the career trajectory, offering a comprehensive snapshot of an individual’s designation within the organisation and their overall employment history.

Strategic Income Tax Planning Beyond their role in employment validation, salary slips serve a critical purpose in income tax planning. The provision of a detailed breakdown of earnings and deductions, these documents empowers employees to strategise their tax liabilities effectively. From basic salary to allowances and deductions such as Professional Tax, EPF, and TDS, salary slips offer insights that enable individuals to calculate TDS returns accurately. Furthermore, they aid in maximising benefits from tax deductions, rebates, and allowances within the legal boundaries stipulated by the Income Tax Act of 1961. Effectively managed tax planning ensures financial prudence and enables individuals to navigate the complexities of the taxation system with confidence.

Navigating Salary Negotiations and New Employment Opportunities Salary slips become invaluable assets during salary negotiations and when exploring new employment opportunities. When engaging in negotiations with prospective employers, past salary slips provide a tangible foundation for discussions. They offer a clear historical perspective, enabling employees to advocate for equitable compensation based on their previous earnings. In the realm of new employment, HR personnel often request these documents for verification purposes, ensuring transparency and credibility in the negotiation process.

Facilitating Financial Transactions and Credit Management

Beyond their role in employment and taxation, salary slips are pivotal in facilitating financial transactions and credit management. When individuals apply for loans, credit cards, mortgages, or other forms of borrowing, financial institutions demand concrete evidence of a stable income. Salary slips offer this assurance, showcasing an individual’s ability to meet monthly payment obligations. They not only set credit limits but also serve as a crucial eligibility criterion for various financial products. In essence, salary slips simplify personal finance management, enabling seamless financial transactions and fostering responsible credit practices.

In Conclusion

Salary slips are crucial documents for all employees to have. But, 93% of Indian employees are unorganised and hence do not get salary slips. They thus cannot avail of loans as they need proof of employment. With the TankhaPay app, employers can not just provide PF & ESI to their workers but also salary slips, which are available to download on the app. So, what are you waiting for, download the TankhaPay app today or visit www.tankhapay.com for more information.

FAQs on Salary Slip

How do i get a salary slip.

Accessing your salary slip is a not difficult task. You simply have to reach out to your company’s HR or payroll department. Many companies provide digital copies through different employee portals.

What is the salary slip rate?

The salary slip rate refers to the frequency at which you receive your salary slip. Typically, it aligns with your salary payment cycle, whether monthly, bi-weekly, or otherwise. Confirm this with your HR department for accurate information.

How do I get a salary certificate?

Proof of salary is exactly what it sounds like, proof of the amount you get paid for your job. It is usually validated through your salary slip, bank statements reflecting salary credits, or a salary certificate issued by your employer. Banks, landlords, or any institution requiring this proof will generally accept one of these documents.

How do I verify my salary?

To verify your salary, you can provide your salary slip, bank statements showing salary credits, or request a salary certificate from your HR department.

How can I download my salary slip?

Check if your company provides an employee portal or HR software. If so, log in to your account, navigate to the payroll or salary section, and you should find an option to download your salary slip. If not, a quick request to HR should get you the digital copy you need.

Are Salary Slips Confidential?

Yes, salary slips are confidential documents. Employers are bound to protect their employees' financial information, ensuring it's accessible only to authorised personnel and the respective employees.

What Role Does a Salary Slip Play in Taxation?

Salary slips play a vital role in taxation, serving as proof of income. They aid in calculating taxable income, allowing individuals to file accurate income tax returns and claim deductions as applicable.

How Does Overtime Reflect on a Salary Slip?

Overtime earnings are typically detailed separately on a salary slip, showcasing the extra hours worked and the additional pay received, ensuring transparency in the payment structure.

What Should I Do if There’s an Error on My Salary Slip?

If you notice any discrepancies or errors on your salary slip, it's essential to immediately bring them to the attention of your HR or payroll department for rectification to avoid future complications.

How Long Should I Keep My Salary Slips?

It's advisable to retain your salary slips for at least a few years. They can serve as valuable references during tax audits, loan applications, or for any financial inquiries that may arise in the future.

What Is Payroll

2 Replies to “Salary Slip – Format in Excel, Word, and PDF (Download Payslip)”

' src=

Dear tankhapay.com admin, Your posts are always well-received by the community.

' src=

Excellent article! Will check out more about tankhapay.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Please enter an answer in digits: 3 × 5 =

Download the TankhaPay App

Download from Google Play Store

  • Social Security
  • Employee Support
  • Employer Support

Popular Posts

Salary Slip Format Excel

TankhaPay is a workforce management app designed to help employers automate payroll, manage attendance, and guarantee social security compliance for their workforce. Learn More About TankhaPay

CMMI Level 3

Quick Links

  • EPF Glossary
  • ESIC Glossary
  • ESIC Checklist
  • EPF Checklist
  • Workforce Management
  • About Social Security

salary slip assignment

  • Terms of Use
  • Privacy Policy

Payrolling & Attendance

salary slip assignment

A memorable HR journey, for employees to remember

An HRIS packed with data points

Biometric & GPS, plan shifts or leaves

Do payroll in mins, keep claims in check

Generate letters, store docs & track assets

Onboarding & exit to an HR/IT helpdesk

360°, competency maps & goal tracking

Career site, recruiter bot, & kanban ATS

Look at the difference we are making

Customers love us, for good reason

Happy conversations, timely resolutions

Look forward to talking with you

Who we are & why we have come together

Together we can do better & succeed faster

Our backers and cheerleaders

Whatever is on our mind, is on our blog

Break-free from HR chaos. Focus on People! - Get sumHR for FREE

  • Home  »
  • Attendance Management System »

Salary Slip: Format and Templates for Human Resource Managers (HRs)

  • December 19, 2022
  • 10 min read

624446d1ed636a212cbeffdf_5917-p-1600

A salary slip is a comprehensive statement of an employee’s pay and deductions for a certain time period. Every month, when an employee receives a salary, the company issues a salary slip to the employee. A salary payslip should typically include a company logo, as well as the name and address of the company. Employees might get a paper copy of this document or it can be mailed to them. They may also see and print salary slips in pdf format.

An organization is required by law to give a salary payslip slip to its employees on a regular basis as evidence of wage payments and deductions. When creating a salary slip, there are a lot of things to keep in mind, salary details such as gross pay, net pay, standard deductions, extra deductions (if applicable), overtime, bonuses, and tips. 

Furthermore, you must always provide the correct amount against each salary slip section. Prepare for an hours-long corrective struggle if you even miss inserting a zero in the appropriate spot!

Are salary slips important?

Salary slips are important for a wide range of reasons. Some of the key advantages of salary slip are mentioned below.

1.1. Your salary slip provides evidence of employment

A salary payslip is a legal document that verifies your work status, job title, and monthly income amount. When you apply for a job in a company or for admission to a university or travel visa, you will typically be asked to provide work information, which will be accompanied by your monthly payslips. 

1.2. Salary slips aid in the preparation of income tax returns

You must obtain the cumulative values for the components like basic wage, HRA, transportation allowance, medical allowance, leave travel allowance, and other components of salary for the relevant financial year from your salary slips, which are subjected to varied tax treatment. If your firm offers monthly aggregate information, you must do the tax calculation using the last payslip of the year. If you don’t have all of your data on one salary slip, all you have to do is add up the monthly amounts to get the annual totals.

Most allowances enable you to claim a deduction up to the number of your actual costs. The percentage of tax deducted, if any, will also be included on your payslip. If your overall tax burden is below the percentage of tax previously deducted, you may be eligible for a refund.

1.3. A salary slip is useful for finding new jobs and salary negotiation

Some companies may request salary slips from your prior employer as confirmation of your current position and salary while you are searching for a new work opportunity. Understanding the various elements of your payslip might assist you in evaluating other job offers. Based on your current job title and income, a salary slip may assist you in negotiating a better position and salary hike with a new company, serving as the foundation for salary discussions. It also acts as income proof and a document of employment.

1.4. Salary slip shows your PF contribution

Almost all major corporations are required to deduct a portion of their employees’ income for provident fund contributions. Employers contribute to this fund as well. If you retire or change jobs, you have the option of withdrawing your funds or having them moved to the new employer. This is important because your salary slips provide you with an estimate of how much you contribute each month.

1.5. Salary slips are essential in loan and credit card applications

If you apply for a loan or a credit card, the bank or credit card company evaluates your credibility by using your last three to six months’ salary slips. The pay stubs show your monthly net take-home earnings as well as your capacity to achieve your payback commitments. Many banks and financial institutions give salaried customers personal loans and salary advances simply based on their payslips.

2. Salary Slip Fundamentals

2.1 what are deductions.

An employee is eligible for a tax write-off for professional taxes in the year that the taxes are paid. Unpaid professional taxes are not eligible for compensation reduction.

Starting with the 2019–20 tax year, taxpayers can deduct from their taxable salary the greater of Rs. 50,000 or their actual taxable salary. The assessee’s pension income is also eligible for the Rs. 50,000 deductions. Taxpayers should know they cannot claim a loss under the head ‘Wages’ due to legislation. Deductions will be capped at Rs.50000 if the pay is less than that.

2.2 Formulas for calculating Salary

An employee’s basic pay is a foundational component of their compensation, serving as the basis for calculating other benefits such as a pension, gratuity, and so on. Companies often use straightforward methods when determining entry-level pay.

Annual basic salary = Basic Monthly Salary * 12 months

However, there is no universal minimum wage method because the amount varies from business to business and on different levels. A proportion of both the pay and the CTC should be used in the salary calculating method. An individual’s basic pay typically constitutes 40% of their gross income or 50% of their CTC.

You may also use alternative methods to calculate the minimum wage. An alternative, equally straightforward formula is as follows:  

Basic salary = Percentage of the CTC or gross pay

2.3 CTC vs Gross Salary vs Net Salary

The term “cost to company,” abbreviated CTC, refers to the overall cost of recruiting an employee for a business in accounting and finance. It is the sum that each firm invests in its workers from the perspective of the business.

CTC = Direct Benefits + Indirect Benefits + Savings Contributions

CTC and gross salary are sometimes confused, but there is a distinction between the two. Gross salary is paid to the employee before tax withholding, Employee Provident Fund (EPF) contribution deduction, and gratuity removed from CTC. The gross wage includes direct and indirect benefits, overtime pay, and other differentials.

An employee’s pay in cash or their bank account after tax deductions is their net salary.

Net Salary = CTC – Provident Fund Contribution – Gratuity – Income Tax (TDS)

3. The standard format of salary slip

The salary slip format mainly has two parts – Income and Deductions. The components of income are basic salary and allowances like house rent, transport, medical, dearness, and other special allowances. The salary components of deductions are the employee provident fund deductions and taxes like professional tax and Tax Deducted At Source (TDS).

4. Standard components in a salary slip

Salary slips are only important to most individuals when applying for a loan or a credit card. However, it’s critical to have a deeper understanding of the salary slip structure. The right understanding helps you utilize all available deductions to reduce your tax obligation and determine what portion of your paycheck is set aside for mandatory savings like EPF, ESI, etc.

Here is the detailed breakdown of each and every component of the salary slip:

4.1. Basic Salary

A basic salary is a defined sum that is provided to an employee before any allowances or deductions are taken into account. The base compensation is usually  35-50%  of the total compensation. It serves as a starting point for the other components of one’s salary. Basic pay is usually kept low and it tends to be high at junior levels. It is included in the take-home salary and if a basic salary exceeds the income tax slabs, it is fully taxable.

4.2. Dearness Allowance 

Dearness Allowance DA is compensation granted to employees to help counterbalance the effects of inflation on their salary. It normally amounts to  12%  of the basic salary. Employers in India, Pakistan, and Bangladesh give Dearness Allowance compensation as a living cost adjustment to fight the impact of inflation. Employees of the government, the public sector, and retirees have access to DA, and it is determined automatically. Basic income and DA are fully taxable. It appears after the basic pay on the income side of the employee salary slip or salary statement. DA is a part of your take-home pay.

4.3. House Rent Allowance (HRA)

Employees who live in a rented house are eligible to get the House Rent Allowance. The HRA is based on the employee’s residential city. In a metro city, HRA is equal to half (50%) of the basic pay. In all other cities, it is 40% of the base pay. The housing rent allowance is free, paying income tax up to a specific limit as long as the individual pays the rent. You can find it on the income side of the employee salary slip. House Rent allowance enables you to save money on taxes. To avail of the tax exemption there should be at least one of the following:

  • Rent paid annually – 10% of the salary (Basic + Dearness Allowance)
  • The full amount of House Rent Allowance received
  • 50% of salary (Basic + Dearness Allowance) for Mumbai, Delhi, Chennai, Kolkata.
  • 40% of salary (Basic + Dearness Allowance) for other cities.

4.4. Conveyance Allowance (CA)

Conveyance allowance, also known as the travel allowance, is a monetary allowance or reimbursement for an employee’s travel expenditures between home and work. It is a concession, and it is also tax-free up to a certain point. It shows on the salary slip’s income side. Conveyance allowance also plays a role in helping you save money on taxes. Conveyance allowance is also a part of your take-home pay. To avail of the tax exemption with CA, there should be at least one of the following:

  • A maximum monthly limit of INR 1600
  • The full amount of Conveyance Allowance received

4.5. Medical Allowance

Every month, the employee’s account is credited with a specified sum as a medical allowance in addition to the salary. The allowance is provided for medical expenditures incurred during the course of work. Medical benefits are determined according to the contract’s applicability to employees. Medical benefits are determined according to the contract’s applicability to employees. But the employee is only paid this allowance if bills and documents of the medical expenses are submitted as proof of spending. If the employee fails to provide proof of medical costs, the allowance will be paid, but it is subjected to full taxation. If documentation is submitted, the allowance is only tax-free up to INR 15,000 in this situation. You can find medical allowance on the salary slip’s income side. This is also a part of your take-home salary.

4.6. Special Allowance

Performance-based allowances are a type of special allowance. They are typically provided as a mode of encouragement to motivate staff to do a better job. Furthermore, these allowances differ from one firm to the next. Special allowances are taxed at their full value. It shows on the salary slip’s income side. And this is a part of your take-home pay.

4.7. Professional Tax

State governments impose a small tax on earning professionals known as professional tax. It’s only available in a few states. It is imposed not just on professionals, but also on anybody who makes a living by any means. The professional tax amount is taken out from your income which is taxable. Every month some of the money is taken out from the salary. You can find it on the salary slip’s deductions page. It’s important to note that professional tax is deducted from the gross salary. Based on the established bands, the maximum amount required to pay by an individual per year is INR 2,500. It is usually roughly Rs. 200 per month.

4.8. Tax Deducted at Source (TDS)

Tax deducted at source is the amount of money deducted by the company as an income tax from an employee’s salary. This tax is deposited by the employer with the Income Tax Department. It’s important to note that income tax too is deducted from the gross salary. This amount is usually estimated by the gross tax bracket of the individual.

This tax can be reduced by investing in tax-free assets such as equity mutual funds and tax-saving FDs. This income tax is collected in advance by the company and they deposit it on behalf of the employees. The amount is withheld from your salary when you pay your income tax using the TDS certificate provided by your employer. TDS returns can be claimed by mutual fund investment and submitting your investment evidence to the business.

4.9. Employee Provident Fund (EPF)

The accumulation of assets for an employee’s retirement period is known as a provident fund. The employee contributes a certain amount from his pay under this plan. This proportion is set by the government. It is currently at 12% that the EPF takes from the basic wage of the employee. Added to this, on behalf of the employees, the company also makes a comparable payment towards their retirement. Please note that the employee provident fund is deducted from the gross salary. When this reaches maturity after 15 years, the entire PF balance, including the interest earned, can be withdrawn tax-free.

5. Templates for salary slip

Organizations usually use payroll software to generate salary slip templates. Here are some of the templates of the salary slips that you can use if you own a company or have some employees:

Salary payslip format 1

salary slip format

Salary payslip format 2

salary slip format

Salary payslip format 3

salary slip format

6. Final Thoughts

The salary slip of the employee is significant legal proof that serves as verification of his income. As a result, if your organization does not provide you with a payslip, you have the legal right to request one. Nowadays all organizations provide either a printed version of the salary slip or email the salary slip in PDF format to their employees so that they may access it at any time. They can also be found in the internal portal of the company.

7. Frequently Asked Questions

7.1. how to verify the salary slip.

A company payslip or salary statement should reach employees on a regular basis each month. As mentioned above, if you didn’t get a physical print of the salary slip, check your email for a soft copy. Electronic payslip is common now as manual salary slip can be very exhausting to create every month. The companies are legally obliged to provide it to their employees every month when the salary is credited. Read about the components of the salary slip above; that way, with some calculations the slips can be verified.

7.2. Why is it important to understand salary slips?

Since a salary slip is a legal proof or document that provides evidence for salary claim and future employment, it is important to understand all the components of salary slips. It also helps in getting loans and mortgages sanctioned.

7.3.  Is it the duty of HRs to verify salary slips?

Yes, it is the duty of the  HR s to verify the salary slips of all the employees and newcomers. It is essential to verify them every month for all existing employees and during the background verification for newcomers.

7.4. Can a salary slip be edited?

Yes, a salary slip can be edited if it is sent in a PDF file format. But it is not advisable to edit a salary slip to manipulate the income. In some cases, it is considered a criminal offense.

7.5. What is the utility of a payslip?

A salary slip or payslip plays an important role in proving employment with the prospective employer and getting other benefits like loans and credit cards. In case of a new job opportunity, the new employer will always ask for the previous salary slips for the last three months.

Also, If you are looking for an  HRMS  that can manage your employees salaries on a monthly basis, visit  www.sumhr.com  and get started with the all-in-one HR &  Payroll software in India

7.6 Do banks check payslips?

When you apply for a loan from the bank or a credit card, bank representatives frequently want a wage slip. It indicates that you are employed by the specified business or organisation and receive a fixed monthly salary.

7.7 Are handwritten payslips legal?

Yes. The salary slips may be printed either by hand or supplied online. The value of the handwritten pay stubs is equal to that of the ones generated electronically. It is possible to provide a copy of handwritten pay stubs as job documentation or when applying for bank loans, etc.

7.8 What is professional tax?

Your employer withholds professional tax, a type of direct tax, from your gross wage. Since the state government imposes this tax, the amount you pay will depend on the state where you reside.

7.9 What are the tax benefits that can be claimed on HRA?

By supplying your monthly rent receipts, you can apply for HRA exemptions. However, bear in mind that if you spend more than Rs 1 lakh per year, you are required to declare the PAN card information of your property owner.

7.10 How to calculate taxable income?

Your taxable income is your gross income less all allowable deductions. Before utilising any available tax credits, estimate how much you’ll owe by comparing that sum to your tax bracket. Since it provides an estimate of how much you will owe the government, predicting your taxable income before submitting your tax return can help you avoid surprises.

new lg

We’re on a mission to elevate HR teams to HR Heroes, one SMB at a time.

sumHR is an all-one HRMS Platform to automate all HR Processes. With sumHR, create a tasteful employee experience, track attendance & leaves, setup & manage payroll, definie & monitor goals, generate & schedule reports, and so much more. We’re on a mission to improve the impact of HR teams in SMEs across India.

Our comprehensive end-to-end HRMS includes

  • HRIS Software
  • Payroll Software (India)
  • Attendance Management Software
  • Performance Management Software
  • HR Operations Software
  • Onboarding Software
  • Recruit & ATS
  • HR Software
  • Payroll Management
  • Payroll for SME
  • In Housing vs Outsourcing Payroll
  • Benefits of Payroll Software

SumHR is a flexible and configurable end-to-end HR Software/HRMS which help HR teams automate the HR Processes, and improve the employee's HR experience.

Product Updates

salary slip assignment

Biometric time attendance system is the best option for any organization. Get affordable biometric management software with sumHR.

salary slip assignment

We are delighted to announce the launch of a dedicated learning module in our support section – Understanding and Using sumHR.

salary slip assignment

sumHR’s human resource management software has a brand new user interface design soon to be the best user interface for everything from payroll management to attendance

Leave a comment Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

HRMS Features

  • Employee database
  • Onboarding & exit
  • HR & MIS Reports
  • Approval workflows
  • Web attendance
  • Biometric devices
  • GPS clock-in/Geo-fencing
  • Leaves/time-off tracking
  • Online payroll (India)
  • Expense claims
  • Generate HR Letters
  • HR & IT Assets manager
  • Store HR docs and files
  • HR policy centre
  • Finance/IT/Travel Helpdesks
  • 360° performance reviews
  • Feedback forms
  • OKRs & goal setting
  • Employee experience
  • Success stories
  • Testimonials
  • Support process
  • Affiliate program
  • Submit a blog
  • Terms of service
  • Privacy policy
  • Security safeguards
  • HR Technology

new lg

Our HRMS Subscription costs ₹1428/year per employee

Get hrms for free, with jupiter money.

salary slip assignment

  • Payroll Software

salary slip assignment

  • Zero Balance Account
  • On -Demand Advance Salary
  • 1% Rewards on DC & UPI
  • 0 Forex Charges
  • Special Offers *

Workflow

Salary Slip: Format, Importance, Components, and Sample Download

salary slip assignment

Published on 27 June 2023

How to Create Salary Slip (Free Template)

Table of Contents

What is a salary slip, usage of salary slip, components of a salary slip, importance of a well-designed salary slip format, sample for salary slip format [free download].

In this article, you will explore the significance of a well-designed salary slip format and provide insights into its various components. A salary slip, also known as a pay stub or paycheck, is a document that outlines the details of an employee's earnings and deductions during a specific pay period. 

Understanding the format and components of a salary slip is crucial for both employers and employees, as it ensures transparency, accuracy, and compliance with legal requirements. Whether you are an employer looking to design a comprehensive salary slip or an employee seeking to understand your pay structure, this article provides valuable information. 

Additionally, we offer a sample salary slip template that you can download for free, serving as a practical guide to creating your own salary slips. Join us as we delve into the format, importance, and components, and provide a sample download of the salary slip, empowering you to effectively manage payroll and foster a transparent and mutually beneficial employment relationship.

A salary slip, also known as a pay slip, is a document provided by employers to employees that outlines their earnings and deductions for a specific pay period. It includes information such as the employee's name, identification number, pay period, and employer details. The salary slip breaks down the various components of the employee's salary, including allowances, bonuses, and deductions such as taxes and insurance premiums. It serves as a legal document for tax purposes, loan applications, and proof of income. Salary slips promote transparency, help employees monitor their finances, and ensure compliance with labor regulations.

Salary slips have several important uses for both employers and employees. They serve as official records of an employee's earnings, deductions, and net pay, providing a comprehensive overview of their financial details. Salary slips are commonly used as proof of income when applying for loans, rental agreements, or other financial transactions. They also ensure tax compliance by documenting income tax deductions. 

Additionally, salary slips promote transparency, helping employees understand their earnings and deductions, and enabling effective financial planning. They serve as legal documents that demonstrate compliance with labor laws and regulations. Overall, salary slips are crucial for record-keeping, transparency, financial planning, and legal compliance.

The components of a typical salary slip can include:

Employee Information

  • Employee ID
  • Designation
  • Date of Joining
  • Contact information (address, phone number, email, etc.)
  • Basic Salary: The fixed amount of salary paid to the employee before any deductions or additions.
  • Allowances: Additional payments provided to the employee, such as house rent allowance (HRA), dearness allowance (DA), transport allowance, etc.
  • Overtime Pay: Additional payment for working extra hours beyond the regular working hours.
  • Bonuses and Incentives: Additional payments based on performance, company profits, or specific targets achieved.
  • Other Benefits: Any other monetary benefits received by the employee, such as medical allowances, travel allowances, etc.
  • Taxes: Income tax deductions as per the applicable tax laws.
  • Insurance Premiums: Premiums deducted for insurance plans, such as health insurance, life insurance, etc.
  • Loan Repayments: Deductions for any outstanding loan amounts, such as home loans, car loans, or personal loans.
  • Provident Fund Contributions: Deductions made towards the employee's contribution to the provident fund, which is a retirement savings scheme.
  • Other Deductions: Any other deductions, such as for damage or loss of company property, fines, etc.

The final amount the employee receives after subtracting the total deductions from the total earnings. It represents the actual take-home salary.

It's important to note that the specific components and their names may vary depending on the country, company policies, and individual circumstances.

A well-designed salary slip format is important for several reasons:

Ensuring Transparency and Clarity

A clear and transparent salary slip provides employees with a detailed breakdown of their earnings and deductions. It helps them understand how their salary is calculated and what components contribute to their net pay. This transparency fosters trust and helps avoid any confusion or misunderstandings regarding the salary calculation.

Facilitating Tax Compliance

A properly designed salary slip format includes the necessary information related to taxes, such as income tax deductions. It helps employees understand the tax deductions made from their salary and facilitates accurate reporting of income during tax filings. This ensures compliance with tax laws and avoids any potential legal issues.

Promoting Employee Satisfaction and Trust

When employees receive a well-designed salary slip that clearly outlines their earnings, allowances, and benefits, they feel valued and appreciated by the organization. It demonstrates transparency in the payment process, which can boost employee satisfaction and foster trust in the employer. Employees are more likely to feel motivated and engaged when they have a clear understanding of their financial compensation.

Legal Compliance and Documentation

A well-designed salary slip serves as an important legal document. It provides evidence of salary payments and deductions made to employees, which can be crucial during audits or legal disputes. It helps the employer demonstrate compliance with labor laws and regulations related to salary payments and deductions.

In conclusion, the importance of a well-designed salary slip format cannot be overstated. It serves as a vital tool for ensuring transparency, facilitating tax compliance, promoting employee satisfaction and trust, and maintaining legal compliance and documentation. A well-designed salary slip format promotes employee satisfaction, as it demonstrates that their compensation is valued and appreciated. Lastly, it serves as an important legal document, providing evidence of salary payments and deductions. 

Are you looking for a comprehensive and well-designed salary slip format? Look no further! We are pleased to offer you a sample template for a salary slip format that is not only visually appealing but also ensures transparency, compliance, and clarity. 

This free download provides you with a ready-to-use template that can be easily customized to suit your organization's needs. Whether you are an employer striving for transparency and legal compliance or an employee seeking clarity in your earnings and deductions, this sample salary slip format is the perfect solution. Download the template now and experience the benefits firsthand!

Simplify Salary Management with Our Template

Our Salary Slip Template is a convenient tool designed to assist recruiters in effectively managing employee salaries.

Streamline your salary management process and enhance efficiency with our free template.

Download the template now for easy salary slip generation!

Share this article

Related Resource

Serba-serbi pajak badan usaha (+ e-book gratis), serba-serbi uang penghargaan masa kerja yang harus hr ketahui [+ handbook], understanding worker compensation insurance: protecting employees and businesses, other category.

Salary Slip: A Comprehensive Guide to Formats, Examples, and Online Options

By workloudly, 22-05-2023, introduction: understanding the importance of salary slips.

A salary slip is a crucial document that provides employees with a detailed breakdown of their earnings, deductions, and other financial information. It serves as proof of income, facilitating various administrative processes such as applying for loans, filing taxes, and maintaining financial records. In this comprehensive guide, we will delve into the various aspects of salary slips, including their format, examples, and online options.

Salary Slip Format: A Closer Look

A salary slip follows a standardized format, typically consisting of several sections that outline different aspects of an employee’s earnings and deductions. Let’s explore each section in detail:

1. Personal Information

The salary slip begins with the employee’s personal details, including their name, employee identification number, department, and designation. This section helps identify the employee associated with the salary slip and ensures accuracy in recordkeeping.

2. Earnings

Under the earnings section, the salary slip provides a breakdown of the employee’s income components. This typically includes basic salary, allowances , bonuses, incentives, and any other earnings specific to the employee’s role. The format may vary depending on the organization’s compensation structure.

3. Deductions

Deductions are essential components of a salary slip as they reflect various contributions, taxes, and other deductions from the employee’s earnings. Common deductions include income tax, provident fund contributions, health insurance premiums, and loan repayments. This section provides transparency regarding the employee’s financial obligations.

4. Net Salary

The net salary section indicates the final amount the employee receives after deducting all applicable deductions from their gross earnings. It represents the actual income the employee takes home and is often the most important figure for the employee.

Salary Slip Examples: Excel Format

Using an Excel format for salary slips is a popular choice due to its versatility and ease of customization. Here are some key considerations when creating salary slips in Excel:

1. Design and Layout

When designing a salary slip in Excel, consider a clean and organized layout. Use headings, fonts, and colors that are easy to read and understand. Ensure that the information is presented logically, with each section clearly demarcated.

2. Formulas and Calculations

Excel allows for automated calculations, making it convenient for generating salary slips. Utilize formulas to calculate deductions, taxes, and net salary accurately. This helps minimize errors and saves time when generating multiple salary slips.

3. Conditional Formatting

To enhance the readability of the salary slip, employ conditional formatting techniques in Excel. Highlight important figures, such as gross earnings and net salary , with bold fonts or different colors. This visually emphasizes critical information.

Generating Salary Slips Online: Convenience at Your Fingertips

With the advancement of technology, online platforms have emerged, providing convenient options for generating salary slips. Let’s explore the benefits and features of using online tools:

1. Accessibility and Convenience

Online salary slip generators allow employees to access their salary slips anytime, anywhere, eliminating the need for physical paperwork or manual distribution. Employees can simply log in to the platform and retrieve their salary slips.

2. Automation and Accuracy

Online systems automate the salary slip generation process, reducing the likelihood of errors. Calculations are performed automatically based on the provided inputs, ensuring accuracy and consistency across all salary slips.

3. Data Security and Confidentiality

Online platforms prioritize data security and maintain strict confidentiality standards. Employee information, including salary details, remains protected and accessible only to authorized personnel.

FAQs About Salary Slips

To address common queries related to salary slips, here are answers to frequently asked questions:

1. Can I request a salary slip from my employer if I haven’t received one?

Yes, you can request a salary slip from your employer if you haven’t received one. Salary slips are essential for maintaining accurate financial records and can help with various administrative processes. Reach out to your employer’s HR or finance department to request a copy.

2. Can I customize the format of my salary slip?

In certain cases, organizations may allow employees to request customization of their salary slip format. However, this depends on the organization’s policies and systems in place. It is advisable to consult with the HR department regarding any customization requests.

3. Are salary slips necessary for filing income tax returns?

Yes, salary slips are crucial for filing income tax returns. They provide a comprehensive breakdown of your income, deductions, and tax contributions. Make sure to retain copies of your salary slips to facilitate the tax filing process accurately.

4. How often should I receive my salary slip?

Employers typically provide salary slips monthly, coinciding with the payment of salaries. However, this may vary depending on the organization’s policies. It is important to receive your salary slip regularly to keep track of your earnings and deductions.

5. Can I access my salary slip online if my organization doesn’t provide an online system?

If your organization doesn’t offer an online salary slip system, you may explore alternative options. Several online platforms and applications allow employees to create digital salary slips independently. Research such platforms and choose a reputable one that aligns with your needs.

6. What should I do if I notice an error in my salary slip?

If you identify an error in your salary slip, promptly notify your employer’s HR or finance department. They will investigate the issue and make the necessary corrections. It is crucial to address any discrepancies to ensure accurate financial records.

Be the first to know when we drop it like it's hot!

Recent posts, conflict with management: navigating challenges in the workplace, strategies for a strategic plan in marketing, sales, hr, and business, objectives of a financial manager, navigating the probation period: rules, jobs, and extensions in india.

  • Rules & Sections
  • Meaning & Definition
  • Income Tax Guides

Salary Slip

' src=

Track your EPF investment on Scripbox in just 1 step

What is Salary Slip?

Salary slip format, what are the components in a salary slip, why is a salary slip important, what is the difference between cost to company (ctc) and in-hand/gross salary, frequently asked questions.

A salary slip or payslip is a document issued monthly by an employer to its employees. A salary slip contains a detailed breakdown of employee salary and deductions for a given period. This document can be either a printed hard copy or mailed to the employees. The employees can download salary slip format in pdf formats. Also, a company is legally bound to issue a pay slip periodically as proof of salary payments to its employees and deductions made.

Scripbox Recommended Tax Saving Fund

Invest in Scripbox Tax Saver funds, get the best of both worlds – tax-saving & long-term growth.

DSP Tax Saver Fund Regular Plan Growth

DSP Tax Saver Fund (G)

Mirae Asset Tax Saver Fund -Regular Plan-Growth

Mirae Asset Tax Saver Fund (G)

salary slip format

The below components that form part of the Income/Earnings side of the salary statement are:

  • Basic Salary

Dearness Allowance

House rent allowance, conveyance allowance, medical allowance.

  • Special Allowance

The below components that form part of the Deductions side of the salary statement are:

  • Professional tax

Tax Deducted at Source

  • Employee Provident Fund

The employer generates a salary statement every month. The employee can download salary pay slip in pdf formats. However, how many understand the salary slip format and components of salary slip to its entirety? The confusing terms and figures are like a puzzle that one doesn’t want to solve. 

For most people, the importance of salary slip is only when they apply for a loan or a new credit card. However, here’s why its essential to understand salary slip format better.

  • Choose smartly from competing offers when one is looking to switch jobs.
  • Optimize tax liability by making full use of the deductions available
  • Understand what percentage of the salary is forced savings (Employee Provident Fund EPF, ESI , etc.)

A salary slip or pay slip will have basic information like company name, employee name, designation and employee code, etc. Salarys components primarily fall under two categories: Income/Earnings and Deductions.

The income part of the salary slip has a basic salary and allowances. The same is explained below.

Basic, as the name suggests, is the basic component of the salary. It constitutes 35-50% of the salary. It forms the basis of other components of the salary. At junior levels, the basic tends to be high. As the employee grows in the organization, other allowances tend to be higher. Organizations tend to keep basic low so that the allowance pay won’t be topped. The salary is 100% taxable in the hands of the employee. Basic is the first component on the earnings side of the salary slip.

Basic in Salary Slip

Dearness Allowance  paid to offset the impact of inflation on one’s pay. It is usually 30-40% of the basic pay. Dearness allowance da is directly based on the cost of living . Hence it is different for different locations. For income tax, basic and DA are considered as pay. Therefore it is taxable. It appears in the earnings side of the pay slip right after the basic pay.

House Rent Allowance (HRA) is given to employees living in rented facilities. The HRA depends on the city of residence of the employee. For a metro city, HRA is 50% of the basic pay. For all other cities, it is 40% of the basic pay. Since housing rent allowance is an allowance, it is exempted from tax up to a specific limit, provided the employee pays the rent. It appears in the earnings side of the salary slip.  One can save income tax on HRA. The exemption is the minimum of the following:

  • Rent paid annually minus ten percent of the pay (basic + DA)
  • Actual HRA received
  • 50% of (basic + dearness allowance da) in case the location is (Mumbai, Kolkata, Chennai, Delhi) or 40% of (basic + dearness allowance da) in case of other cities.

Conveyance Allowance is the amount an employer pays an employee to travel to and from work. It is an allowance. Hence is exempt from tax up to a specific limit. It appears in the earnings side of the salary slip. One can save income tax on conveyance allowance. The exemption is the minimum of the following:

  • INR 1600 per month
  • Actual conveyance allowance received

Medical Allowance is the amount an employer pays to an employee for medical expenses during the term of the employment.  One can save income tax on medical allowance. However, the employee only receives this amount on the submission of medical bills as proof. If the employee fails to submit evidence of medical bills, he/she will receive the allowance, but it will be fully taxed. In case the proof is provided, the allowance up to INR 15,000 is only exempt from tax. It appears in the earnings side of the salary slip. 

Leave Travel Allowance

Employers give it to cover the cost of employee travel while on leave. It includes the travel expenses of the employee’s immediate family members as well. Proof of the journey is required to avail deduction subject to certain limits. Any expenses incurred during the trip apart from travel do not count towards the leave travel allowance tax exemption. The exemption is also applicable only for two journeys undertaken in a block of 4 calendar years. It appears in the earnings side of the salary slip.

Special Allowance in Salary

Special allowances include performance-based allowances. These are usually given to encourage employees to work better. Also, these allowances vary from company to company. Special allowances are 100% taxable. It appears in the earnings side of the salary slip. 

Allowances in Salary Slip

The deduction part of the salary slip has the professional tax , TDS and EPF.

Professional Tax

Professional tax is a small tax levied by state governments on earing professionals. It is payable only in a few states. Namely, Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, Jharkhand, Bihar, and Madhya Pradesh. It is not only levied on professionals but to anyone who earns a living through a medium. This amount is deducted from the taxable income. Also, it usually amounts to just a few hundred rupees each month and is subject to the gross tax slab. It appears on the deductions side of the salary slip.

Standard Deduction

A standard deduction of Rs 50,000 is available under the old tax regime as well as new tax regime. The standard deduction has replaced the transport allowance and medical reimbursement.

It is the amount the employer deducts on behalf of the income tax department. It is based on the gross tax slab of the employee. One can reduce this amount by investing in tax-exempt investments like equity funds (ELSS), PPF, NPS, and tax-saving FDs. It appears on the deductions side of the salary slip. Hence, investing in section 80C instruments of the Income Tax Act increases your takehome salary. One can invest in mutual funds (ELSS), submit investment proof to the company and claim tds returns . 

Employee Provident Fund (EPF)

It is the contribution of the employee to the provident fund.  This qualifies for section 80C of the Income Tax Act. Provident fund is the accumulation of funds for employee’s retirement period. The Employees’ Provident Fund Organisation governs it. 12% of the employee’s basic salary goes towards EPF. The employer also makes a similar contribution on behalf of the employees for their retirement.

However, not all the contributions made for Employee Provident Fund goes to the provident fund. Out of employee’s contribution, 8.33% goes to the Employees’ Pension Scheme. If their salary is above INR 15,000, the contribution is INR 1,250. For employees with a salary below INR 15,000, 8.33% goes towards the Employees’ Pension Scheme. The balance amount is retained in the EPF scheme. However, employees can opt-out of the EPF scheme (up to a limit) and invest in better-earning instruments like equity funds (ELSS). Employee Provident Fund appears on the deductions side of the salary slip.

Preserving salary slips is as important as the employment certificate. The salary slip helps employees in seeking loans, future employment, income tax planning, availing government subsidies, and acts as a legal document of employment. 

With an in-depth understanding of the salary slip components, let us first examine its importance.

Proof of employment

A salary slip serves as legal proof of employment. While applying for travel visas or universities and colleges, applicants must submit a copy of salary slip as legal proof of the last drawn salary and designation. Also, the salary slip is one of the most critical documents for background checks. The document holds as legal proof against the salary claim. The salary slip also has the current designation. All the past slips can be used to show the career trajectory of the employee at the firm. 

Income Tax Planning

A salary slip contains the monthly break-up of earnings and deductions. It also includes components that are tax-deductible. The break-up of earnings, i.e., basic salary, HRA, medical allowance, travel allowance. As well as deductions i.e., profession tax, EPF, and TDS. TDS helps an employee plan his/her tax liability in advance. The takehome salary is hence higher due to these deductions. The tax is then calculated on takehome salary based on income tax slabs.

A proper income tax planning helps in managing tax outflow. Tax planning is an integral part of managing finances. Thus, it helps in availing maximum benefits of tax deductions, rebates, allowances, and concessions within the accepted bounds under the Income Tax Act of 1961. 

Salary slips not only help in assessing the tax outflow, but also assist in calculating the tds returns and income tax refund. Therefore, it is essential to keep track of the salary break-up to keep up with Income Tax.

Seeking future employment

A salary slip is a legal proof of current employment and the pay scale at which the employee is currently working at. This document helps in negotiating with prospective employers at an aggregate level i.e., total cost to company CTC and each component level, i.e., basic salary, allowances. Almost all companies ask for past payslips as proof of employment and earnings. 

Also, the employees can compare the offers given by new employers based on past salary slips. It plays a significant role in evaluating the experience. Therefore, salary slip plays an important role in the job search. It also helps in deciding the hike that one should be getting. Moreover, the salary slip is a deal-breaker in the salary negotiation with a new employer.  Also, previous salary slips can be used to prove the career trajectory. 

Avail loans and credit card

A salary slip has all the details of the salary and designation. It serves as legal proof of the credit paying ability of an employee. Further, availing loans, credit cards, mortgages, and other borrowing are based on the salary slip. Therefore, this document is required when applying for a loan, credit card, mortgage, etc. Lending institutions and banks ensure they take a copy of the salary slip. The creditworthiness of the borrower is analyzed based on the salary statements. 

The salary slip helps in setting a credit limit. Also, it acts as an eligibility criterion to avail of a loan or credit card. With this, salary slip determines your taxes in the financial year as well.

Avail government subsidies

The pay slip can be used to avail of certain free services. In fact, they can also be used to avail services that have a heavy subsidy. Such services include medical care, food grains, etc.

 One can use Scripbox’s income tax calculator  to determine the taxable income which will help in filing income tax returns. The calculator also recommends mutual funds investment ( ELSS ) for tax savings. Use the calculator and save the tax.

Cost to the Company CTC is the total amount the employer spends on an employee. The cost to company comprises components such as housing rent allowance hra, Conveyance allowance, Gratuity, Medical expenses, employee provident fund epf, other allowances, etc. While Gross salary is the amount, an employee receives before any deductions. In other words, it is the amount the employer commits to the employee every month. Gross Salary doesn’t include PF and gratuity.  Net pay is the salary employee receives after deductions.

Cost to company is the amount an employer spends on hiring and sustaining the services of an employee. It is considered to be variable pay. CTC varies based on various factors and thus has an impact on the net salary an employee receives. An individual can correct it by merely matching the CTC to the actual amount they are receiving.

Let’s understand the difference between cost to company and gross salary with a sample pay slip. Mr. Charan’s CTC is INR 5,50,000. Below is the break of his cost to company :

Basic Salary: INR 2,75,000 (50% of salary)

DA: INR 82,500 (30% of basic)

HRA: INR 1,43,000 (40% of basic + DA)

CA: INR 19,200 (INR 1600 per month)

Special Allowance: INR 8,700 (based on performance)

EPF Contribution: INR 21,600

Gross Salary is the amount before deductions of taxes and others. However, it is inclusive of bonuses, overtime, etc. While Charan’s gross salary is INR 5,50,000 – 21,600

Gross Salary = INR 5,28,400. The net pay is calculated on this amount.

A salary slip or payslip is a document issued monthly by an employer to its employees. A pay slip contains a detailed breakdown of employee salary and deductions for a given period.

Understanding the pay slip is important as It helps one understand their salary and components Also, the salary slip acts as proof of employment. It also helps in filing income tax returns and apply for loans and mortgages and negotiate for a salary hike when applying for a new job.

The salary slip is important as it helps employees in seeking loans, future employment, income tax planning, availing government subsidies, and acts as a legal document of employment. Preserving salary slips is as important as the employment certificate.

The employer provides your salary slip on a monthly basis. A salary slip is either printed or emailed to you by the employer. You can also check the salary slip on your employee’s internal portal. The pay slip will have details of your salary and deductions. Basic Salary, Dearness Allowance, House Rent Allowance, Conveyance Allowance, Medical Allowance, Special Allowance, Professional tax, Tax Deducted at Source and Employee Provident Fund are the various components of a salary slip.

Salaried employees can claim a deduction of Rs. 50,000 as a standard deduction. The standard deduction replaces transport allowance and medical reimbursement components in the salary slip. It reduces the tax outgo for salaried and pensioners.

Related Articles

Types of ITR Form and What type of ITR applies to me ? 

Steps for Filing Condonation Request for ITR Verification Delay

Tax on Leave Encashment for Government & Private Employees

tds-payment-due-date

TDS Payment Due Date

tds-on-salary

TDS on Salary Under Income Tax Act, 1961

tds-on-rent

TDS on Rent : Section 194I of Income Tax Act

Posted on 24 Oct, 2023

Last updated October 24, 2023

See all 6 sources / citations

Shivani Chaluvadi

Shivani Chaluvadi is an avid investor in the Indian markets. She is an MBA graduate and through her writing inspires many readers to start their investment journey. Her expertise lies in communicating a complex financial concept in a simplified way. As an entrepreneur, she believes in grabbing every opportunity that comes her way. She brings more than four years of financial markets expertise to the team.

Practical Insights For Wealth Creation

Our weekly finance newsletter with insights you can use

Your privacy is important to us

Show comments

Please enter valid email address

Thanks for subscribing to our newsletter! You will start getting them soon.

Get the Scripbox App

View, Analyse, Manage, and Grow your wealth with just one app.

Track your EPF investment

salary slip assignment

27+ Sample Salary Slip Format in Word Templates : Components of Salary Slip

  • Tyler @ Demplates

A salary slip is a vital document that is well recognized by all business establishments. It has comprehensive details about the employee, employer, any deductions, and other things. So, let us have a look at the components of a salary slip.

Now, that you are aware of the significance of salary slips and their types, let us have a look at the free salary slip templates that are also completely editable.

Sample Salary Slip Format Templates

Private job salary slip format.

private_job_salary_slip_format

Here, apart from using the traditional black, multiple colors are used for text and number like red, blue, pink and purple on a white background.  It has four columns and five rows.

Salary Slip Format 20000

salary_slip_format_20000

The salary slip here comes with two tables separated with a whitespace. While the top one has two columns in blue and a shade of red, the bottom one comes with three columns in a combination of baby pink and white.

Salary Slip Format As Per Factory Act

Salary Slip Format As Per Factory Act

The salary slip has multiple tables with several columns and rows on a white background. However, the bottommost table has an entire row in bright red that makes the salary sip look endearing.

Salary Slip Format As Per Payment Of Wages Act

Salary Slip Format As Per Payment Of Wages Act

The salary slip is a simple one with seven rows and fewer columns. Everything in the salary slip is in black except the ‘Next Pay’. There is a separate row for the header i.e. the company name.

Salary Slip Format Bank

Salary Slip Format Bank

Heavy on text, the paystub comes with a large table at the center on a white background and some cells in gray. The most prominent feature is, however, its header in a large text box at the top.

Salary Slip Format Basic

Salary Slip Format Basic

With a dedicated space for a company logo to its top-right, the salary slip comes with different shades of orange on a white background.

Salary Slip Format BPO

Salary Slip Format Bpo

The salary slip is simple and has a clutter-free design with everything within cells and a header consisting of company details at the top.

Salary Slip Format For Bank Loan

Salary Slip Format For Bank Loan

The salary slip is heavy on text with a textbox at the top containing a header and two consecutive tables among which the table below the header comes with countless rows and columns.

Salary Slip Format For Cash Payment

Salary Slip Format For Cash Payment

The salary voucher is simple in terms of its layout with its text aligned to the left and ample space to fill the date. amount, details and other essentialities.

Salary Slip Format For Central Government Employees

salary_slip_format_for_central_government_employees

The salary slip has a dedicated row as a header to make the salary details distinct and two separate tables with white space in-between.

Salary Slip Format For Contract Employee

Salary Slip Format For Contract Employee

There is a blue text box at the top-right containing the header below which there are three consecutive tables with multiple rows and columns of which the center table has some of its cells with a tint of blue.

Salary Slip Format For Contract Employee 2

Salary Slip Format For Contract Employee 2

The salary slip has a dedicated space to its top-right for the company logo and to its left extreme is the company details. Below the same comes a large table with its cells in two distinct shades of gray.

Salary Slip Format For Hotel Industry

Salary Slip Format For Hotel Industry

The salary slip has a single table with three distinct rows in a shade of red and several rows and columns having the requisite text. If you don’t want to miss anything, this one is ideal.

Components of a Salary slip

Basic Salary- The higher the basic salary, easier will be to handle all your expenses.  It is generally 35 to 50 percent of your total salary.

House Rent Allowance- Also known as HRA, it is approximately 40 to 50 percent of the basic salary and can vary as per your location. For example, for metro cities, it is higher and for non-metro cities, it is a bit lower.    

Conveyance Allowance- Many employees travel a great distance to reach their workplace on an everyday basis, The conveyance allowance paid by the company eases the travel expenditure and is also not liable for any kind of tax.

Leave Travel Allowance- This one cover travel expenses of the employee. No, it is not like conveyance allowance but is paid by the company to cover the expenses that are incurred during traveling with the immediate family member while on leave. It is available in hand only after showing adequate proof of travel.

Medical Allowance- This also needs valid proof of expense but is mainly to cover the medical expenses if any during the tenure of employment. Failure to submit adequate proof, make the medical allowance taxable.

Performance Bonus and Special Allowance- Some employers give this allowance to encourage or motivate their employees to work better, but the amount is 100 percent taxable.

Types of pay slips or salary slips 

Salary slips are basically of two types that are mentioned below:

  • Online Payslips-Thanks to the advent of technology, these are not most preferred by all businesses across the world. As these are stored online, employees can easily track their salary slips whenever required. These are also environment-friendly with less use of paper.
  • Paper Payslips- These are simple and any kind of technical failure does not effect such salary slips, but yes, these consume much paper. The main advantage is all employees can have their salary slip in hard copy that gives a sense of security.

Salary Slip Format For IT Company

Salary Slip Format For IT Company

With two rows in blue with text in white and a text box in between, the salary slip exhibits a rare clutter free approach in its designing.

Salary Slip Format For Labour

Salary Slip Format For Labour

The wage slip and time sheet come with a blue header and several rows separated from each other via white space containing relevant text.

salary_slip_format_for_private_company

The salary slip has two separate tables that have company details and logo at the top in a wide row and other details in the remaining cells of both the tables.

Salary Slip Format For School Teachers

Salary Slip Format For School Teachers

There is a dedicated logo space to the top-left and an orange colored sub-header below the black header in bold. The rest of the salary sip has a table with multiple rows and columns.

Salary Slip Format For Security Guard

Salary Slip Format For Security Guard

The salary slip features two columns at the top in blue and text in black on the same. The rest of the salary slip has its text in multiple columns and rows on a white background.

Salary Slip Format For Small Organisation

Salary Slip Format For Small Organisation

The salary slip has a large header with company name at the top and four distinct columns within a table while there is a row separated from the table via white space at the bottom.

Salary Slip Format For Temporary Workers

Salary Slip Format For Temporary Workers

The salary slip has the company details at the top followed by a table with some of its cells in light yellow and orange.At the bottom are several dotted lines that are left blank below the date.

Salary Slip Format For Visa

Salary Slip Format For Visa

The salary slip has two tables adjoined to each other with the presence of blue and green in the table to the left at some places. A single feature that makes it distinct is the difference in width between two adjoining tables.

Salary Slip Format Hospital

Salary Slip Format Hospital

The salary slip comes with a rare combination of white and fluorescent green. It has clarity in terms of featuring the text in a clutter-free fashion. While the top-right corner has the space for including the company logo, there is room for both employee and director’s signature at the bottom.

Salary Slip Format Proprietorship Firm

Salary Slip Format Proprietorship Firm

The salary slip of a proprietorship firm too consists of a large table with two separate sections for earning and deduction details. At the bottom, there is enough space for signatures of both employee and the employer.

Salary Slip Format Software Company

Salary Slip Format Software Company

The salary slip of an IT company features a large table which has company and employee details in the uppermost part and earnings and deductions in the middle one on a white background.

Salary slip format tcs

salary slip format tcs

The payslip with its large table looks neat and has employee details and payment and leave details in two separate but adjoined tables. Two of its rows are colored while rest are colorless as mostly they are in a professional salary slip.

Salary slip format to whom it may concern

salary slip format to whom it may concern

The salary slip has the company details aligned to its right corner and the rest of the text either aligned towards the left or center on a white background. Its main highlight are the rows that are colored in gray in alternate numbers.

Salary slip mail format

salary slip mail format

The salary slip has a nice layout with a large table consisting of four rows and columns with ample white space and employee details at the top below the header.

Most of the educated people today are either self-employed or salaried. While self-employed professionals get their income from their own business or work and have no employer, salaried professionals get a fixed salary every month on a fixed day from their employer in the form of bank transfer, cheque or other means.  It is strange that although we all receive it and value it dearly to meet our expenses, the meaning of the word’salary’ is largely unknown to all. The word ‘salary’ has its origin in the Latin word ‘salarium’ that means an allowance to purchase salt in the Roman Empire. However, while many experts agree about its derivation from the Latin word, its connection with salt is highly debatable. So let us leave it, and have our focus on salary slip which is provided by the employer at the time of presenting the salary.

Why is a salary slip important?

A salary slip is an extremely important document that is required to produce after or before joining a new company. However, here is a list of reasons for which it is considered significant.

  • Need to show to a new employer or HR while switching a job. However, salary certificate is also fine
  • Helps during applying for a loan or to mortgage anything as it is required to produce in the bank or other financial institution
  • Helps in understanding the tax liabilities and making an optimal use of available deductions
  • Aids in the case of legal troubles at workplace as it is legal document, but many companies refrain from issuing the same to their employees

orbit careers logo

Salary Slip Format in Excel With Formula | Free Download PaySlip Word, PDF

payslip format in excel

Post salary calculations, every organization issues a piece of document to its employees at the end of every month, most commonly known as a payslip, salary slip, pay stub, etc. In this article, you’ll learn how to make a salary slip, the important elements of a salary slip format, and download a salary slip format in excel with formula & auto calculations.

What is a salary slip? 

A salary slip, payslip, or pay stub is payment advice issued to the employees of an organization once their salaries are credited into their accounts. 

A simple salary slip format contains a detailed breakup of the gross and net salary, no. of days worked, no. of hours paid for, tax deductions, paid to the employee. The main components of a salary slip are Basic Pay, House Rent Allowance (HRA), TA, DA, Reimbursements, Medical, Bonus, etc. it also contains the details of statutory tax deductions like PT, PF, TDS, insurance cost, etc. 

most companies prefer using a hrm payroll software to generate salary slips and pay stubs. a HR & payroll software makes it easy to calculate, control and generate reports.

if you are looking for an affordable and one of the best payroll software in India, check Zoho.

They have some amazing features. they are cheap and they offer great customer service too.

payslip template excel

Apart from the salary structure and deductions, a payslip also contains vital information like the number of days worked in that month, PF account/UAN number, bank account details of the employee, and leave details. 

A salary slip also certifies that the employer has paid the salaries for the specified month and the employee has received it. 

It’s also treated as income proof by most of the banks. Individuals seeking services like loans, credit cards, and other banking services are asked to submit a minimum of six months’ payslips and bank statements to avail of services. 

Most employers use automated payroll software to generate a salary slip format for their employees. It’s easy, fast, and reliable. 

CLICK HERE TO DOWNLOAD SALARY SLIP FORMAT IN EXCEL WITH FORMULA & CALCULATIONS FOR PVT LTD COMPANY

Download Salary Slip Format In Excel With Formula

Send download link to:

How do I make a payslip in excel?

As discussed above, a payslip contains a detailed salary structure and deductions. 

A simple salary slip format contains two major headings. 

  • Earnings 
  • Deductions 

An ideal payslip template in an excel format must include details like

  • Organizations name, address, logo, contact details, and registration number
  • Month and year the payslip is issued for 
  • Employee ID
  • Employee Pan Card, Adhaar Card, Bank Account details
  • EPF Account Number, Universal Account Number (UAN)
  • Number of days worked, number of leaves
  • Details of payment and deductions 
  • Gross pay and Net pay 
  • Sign & Stamp (if not generated by a payroll application) 

To make a salary slip in excel format, start with entering details like company name, address, and contact details in the headline section in an excel sheet. 

Create another two equal sections in the excel sheet to enter details like employee ID, date of joining, month & year, EPF account number, UAN number, pan card, Aadhaar card, department, number of days worked, number of leaves taken, designation, and department. 

The next section of the salary slip in excel format contains two major headings, Earnings & Deductions.

The left-hand side of the section includes earning details like Basic pay, HRA, TA, DA, Medical, special allowances, bonus, mobile, and reimbursements.  

The right section of the salary slip format contains deduction details like PF, PT, and TDS. 

You may also download our ready salary slip templates in excel formats with formulas. 

Enter the basic details and you’ll have a ready to print salary slip in no time. These salary slip format in excel are ideal for small size organizations. 

salary slip format in excel with formula

Is it compulsory to issue a salary slip? 

Yes, it’s one of the most essential documents for employees and employers. Every working professional/employee needs a salary slip to prove his earnings. It also proves that the employer has made all the dues. 

A salary slip is required at the time of income tax calculations and filings. The structure of the salary slip is used for calculating the net payable taxes and refunds. 

A salary slip also acts as proof of employment. Companies often demand the last three months’ salary slips along with other documents from the new recruits. 

Are salary slips without stamps and signs legally valid? 

Yes, only if it’s a payroll software-generated copy. However, manual salary slips must be signed and stamped by a competent authority. 

A salary slip/payslip is one of the most forged documents by job seekers. Opting for payroll software can help employers minimize the number of such incidents. 

Important components of a salary slip format and their meanings.

  • Basic pay: Basic salary is the minimum pay an employee is entitled to receive every month against his/her work for the employer. Every state/country has its own labor law and minimum pay rules for skilled and unskilled sectors. The employers must consider those minimum payment rules before deciding the salaries. The basic pay is calculated at 35% to 50% of the total salary. Basic pay is fully taxable and other major allowances like DA, HRA, and EPF are calculated on the basis of basic salary. 
  • Dearness Allowance(DA):  A certain percentage of the basic salary is paid as DA. DA is paid to compensate for the cost of living and other similar expenses. 
  • House Rent Allowance (HRA): 40% to 50% on the basic pay is paid as HRA to compensate against the rents payable by the employee. 
  • Conveyance Allowance (CA): Conveyance allowance is paid to compensate against the traveling cost of the employee from home to work and vice versa.  
  • Medical Allowance:  medical allowance is paid to compensate against the medical expenses of the employee. 
  • Special Allowances: special allowances are a part of performance-based pay
  • Miscellaneous Allowances: all the other allowances paid to an employee fall under the miscellaneous allowance. 
  • Profession tax: a profession tax is levied on all the working professionals by the Indian government. The employers are supposed to deduct it from the salary and pay the tax. 
  • EPF: Employee provident fund is a mandatory government scheme. The prime purpose of EPF is to safeguard the interest of the employees in certain situations like unemployment, marriage, illness, and house construction. The employer and employees make an equal contribution to this scheme. 
  • TDS: The employers are supposed to deduct a certain income tax amount from the employee’s salary and pay it to the government. 

pay slip template excel

No. As an Employer, you must issue payslips to your employees on monthly basis.

Yes, You can.

Leave Travel Allowances.

You should not.

No. Handwritten salary slips are not legal.

Please refer our detailed article on salary slip format in excel for the answer.

Yes, if that is how you calculate the compensation.

Payslips are used for determining the annual income of an individual. Often considered as proof of income, banks use them to determine your eligibility for loans, credit cards, and other banking services. Employers use them to check the last drawn salary of the potential employee and decide a fair CTC to be paid.

Share this:

Related posts.

Warning Letter To Employees Format

How To Write A Warning Letter To Employee | For Negligence | Poor Performance | Misconduct Etc. | Free Sample Download

salary slip assignment

Experience Certificate Format | Download Format & Samples | Word, PDF

1 thought on “salary slip format in excel with formula | free download payslip word, pdf”.

'  data-srcset=

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Subscribe to Our Newsletter

Whether you’re looking to land your dream job, improve your resume, or ace your next interview, our newsletter will provide you with the tools and knowledge you need. Join our community of career enthusiasts and receive regular updates delivered straight to your inbox.

Salary slip or Payslip format - Validity and its Components

  • / Salary slip or Payslip format – Validity and its Components

 Salary slip or Payslip format – Validity and its Components

Salary slip or Payslip format – Validity and its Components

Every month, employers have to provide payslips to the employees as legal proof that they are salaried employees of a certain organisation and they are getting a salary on time. In this post we will discuss about the Salary slip or Payslip format along with different components of the payslip.

We will cover the following:

What is Payslip?

  • Importance of a Payslip
  • Components of payslip
  • Formulas of Payslip
  • Difference between Gross salary and CTC
  • Format of Payslip

Payslip is a document which an employer provides to the employee as proof of salary. It contains the description of all income earned, exemptions, deductions and taxes cut from your salary. Employers can share the payslip with employees in paper or mail format. Both the type of payslips hold the same importance and validity.

Importance of Payslip

  • It acts as an important legal proof of employment
  • You can avail loans, mortgage or other borrowings with the help of Payslip as it assures that their lending will be repaid.
  • It is an important proof of income which helps you file income tax returns.
  • Having a valid payslip helps you to access to various facilities provided by the government like medical care etc.,
  • It helps in negotiating salary with new employers for better pay

A manual and computerized payslip is a valid proof of document. Modifying an issued payslip is considered a criminal offense. So an employer has to ensure that employees will not be able to modify the payslip. For this purpose, payslips are generally given in PDF format.

Components of Salary Slip or Payslip

  • Income or earning
  • Leaves (Optional)

Components of Salary Structure

All the income, gains are located on the left side of the payslip. Let us take a look at the different types of income below.

Basic Salary

This is the basic and main component of income. The percentage of Basic differs from company to company. It is the basis for the calculation of various other components of the payslip. Basic is fully taxable.

Dearness Allowance (DA)

Dearness Allowance should neither be high nor low. It is paid to reduce the impact of inflation on the employee. In some companies, DA is an optional head of salary.

House Rent  Allowance (HRA)

It is an allowance to pay out the house rent of the employees. Employees can claim exemption on this by submitting rent receipts.

Conveyance Allowance

It is an allowance for an employee to cover his / her expenses of travel from home to work and work to home.

Other Allowances

There can be various other allowances according to the company policies. These can be uniform allowance, special allowance, city conveyance allowance, child education allowance, etc.

Reimbursement

Reimbursement can also be shown as income in the payslip of the employee. Reimbursements for fuel, medical and food coupons will come under this head.

All the deductions are located on the right side of the Payslip. Deductions can be statutory or based on company policy.

Provident Fund (PF) – Statutory

It provides retirement benefits or savings to the employee. PF is calculated on (Basic+DA) (Cut-off at Rs. 15,000). Only employee contribution of 12% on (Basic+DA) can be seen in the payslip of the employee.

Employees’ State Insurance (ESI) – Statutory

It provides medical facilities to all eligible employees. The deduction towards ESI compulsory. The cut off is Rs. 21000. The employee contributes 1.75% on gross salary.

Professional Tax (PT) – Statutory

It is a tax collected by the state government from all salaried employees. PT depends on state to state government. It is calculated on the gross earnings of the employee. Gross earnings are the sum of all income.

Tax Deducted at Source (TDS) – Statutory

The amount of tax deducted by the employer on behalf of the Income Tax Department from the salary of the employee.

Formulas of Payslip –

There are some predefined formulas to calculate your gross salary and deductions.

Difference between Gross salary and CTC (Cost to Company)

Payslip format.

There are some important content of salary slips that must be mentioned.

  • Name of the company
  • Company’s logo
  • Name of the employee
  • Employee’s designation and department
  • Employee’s ID number
  • Employee’s PAN/Aadhaar number
  • Employee’s bank account number
  • Employee’s Provident Fund account number
  • Number of leaves taken by the employee
  • Effective workdays of the employee
  • UAN (Universal Account Number)
  • Earnings and deductions
  • Gross and net pay

Download the Payslip Format

How do i verify the employee’s salary details.

Employees have to submit the old employer payslip for at least 3-6 months and the salary deposit bank statement for the said duration.

In case of any mistake, is it possible to edit the salary slip of an employee?  

Yes, it is possible to edit salary slips if any details or the calculational mistake is found in the slip.

Is handwritten payslip valid?

No, handwritten payslip/paper based are no longer considered as valid.

How can I make a simple payslip?

You can create a payslip in an excel sheet or you can use software. You need to add various content, such as employee details, basic salary, deduction, bank details, earnings, TDS, PT and other details or apply formulas. Based on the formula you can calculate the net balance. Then your payslip will get ready

This ends the post on the format of Payslip. Let us know your opinion by commenting below.

Related Posts:

Overtime Rules & Calculations

A Guide to CTC 

Reliving Letter

Say Goodbye To Your Payroll Struggles

Discover how Saral PayPack helps you automatically generate payslips, salary sheets, and more with our payroll software.

Scheduled a free demo now

Join our exclusive Saral PayPack Insights WhatsApp Group for HRs and Payroll Professionals to stay ahead in the ever-evolving trends.

Get timely reminders, regular updates and insights into various aspects of payroll & HR operations as well as a sneak-peak into our Payroll software which is trusted by 5000+ professionals.

Scan the QR code or visit the link: https://bit.ly/payrollinsightsbysaral

salary slip assignment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

salary slip assignment

last 3 month

salary slip assignment

I need July 2019 payslip

salary slip assignment

My name naresh send me salary slip sir

Salary Slip: Importance, Components, and Sample Template

How Do You Become a Member of AEPC

Salary slip is very important and having the right template is important, which you can get all the information here.

All the salaried people get the salary slip, but most people do not even know the importance of this document. Before you go with the monthly pay slip format, you need to understand the meaning of the Salary slip.

Table of Contents

What Is Basic Pay in Salary Slip – Monthly Pay Slip Format

The original slip is ideally a document your employer issues if you work for them. It features a detailed description of your salary components, including the house rent allowance, leaves travel allowance bonus, and other deductions for a specific term, generally a month. It can be issued on paper or digital and mailed to you. Employers are bound to legally give all the slips to the employees in time as proof of the salary paid to employees and payroll deductions made. If you are working for a small company, then they might not provide a salary slip regularly. The employee can ask the employer for a salary certificate in such cases. Read more to know about slip generator.

How to Write Pay Slip Format?

The monthly p ay slip format of the slip is different for different companies. Still, the basic template of the salary slip includes the following elements the Name of the company, address, logo, month, and year.

  • It should also include the code designation employee Name and department.
  • It must include the employee pan, Aadhar, and bank Account numbers.
  • The salary slip will feature the EPF Account number and universal Account number.
  • Besides that, it will feature the full work days and then leaves.
  • List of the income and deduction.
  •  In numbers and words, the net pay will be mentioned.

Why salary slip is important?

The basis for some income tax payment.

Salary slip will become the best for the calculation of income tax. It helps in preparing the Income tax return and determining how much tax you have to pay or how much refund you have to claim for that particular year.

Provide Access To Different Facilities

The salary pay slip allows you to access different free or subsidized facilities provided by the government like subsidized foodgrains, medical care, etc.

Helps You Borrow

Salary slips assure the lenders that the lending will be repaid. It is also one of the most critical documents you need to have to avail of loans mortgage credit, another form of borrowings from a financial institution or bank.

It Helps In Assessing The Offers

The employees can compare offers from different employers based on the last salary pay slip. It can also help you negotiate salary with the new employers or for any other role.

Employment Proof

The salary slips are essential legal evidence of employment. Additionally, while applying for a travel visa or university, applicants might be asked to furnish a salary slip copy like a proof of work or designation.

Help In Availing Loans

A salary slip contains all your salary details, and it works like legal proof that allows you to replay the credit taken as a loan within a given timeline. It also helps you understand financial stability while you are seeking alone. Hence, a salary slip is one of the most critical documents you need to apply for a loan or credit card. Banks or financial institutions generally ask for 2 to 3 months of the salary pay slip while granting the loan. The credit worthiness of the employee would be analysed based on this salary slip. When the employees are availing alone, the fixed EMI will be deducted every month from the salary received by the employee. Hence, the salary slip also helps set the credit limit and is one of the most critical assets while providing the loan.

Simple Salary Sheet Format

Click the below button to download salary sheet format

Elements Of A Salary Slip – Payment Slip

It includes the basic salary. The basic salary is one of the essential elements of the salary and generally comprises at least 35 to 40% of the full salary. It forms the basis for determining other elements of your monthly pay slip. The first element on the earning sites of the payslip is always to calculate the basic salary .

Dearness Allowance

The dearness allowances are ideally the allowance paid to reduce the impact of inflation, and it forms 30 to 40% of your basic salary. The dearness allowance depends on the living cost, which is different for all locations. Dearness allowance is considered as the pay for income tax purposes. Hence it is taxable. It will appear on the earning side of your pay slip right after the basic salary. You need to know that the dearness allowance is only given to employees working in government offices and public sector companies.

House Rent Allowance

The house rent allowance is paid to the employees for the house rent they produce. It is based on the Location of the rented home and is 40 to 50% of the basic salary. The employees receive the entire house rent allowances, but it is not entirely tax-exempt.

Leave Travel Allowance

The allowance covers the cost of your travel and the immediate family members while you are alone. Income tax exemption is available on the travel cost provided as they leave travel allowance by your employer. To avail of the reduction, you must show proof of your journey. But they leave travel exemption is available only for two trips.

Deductions – Monthly Pay Slip

Employees Provident fund is one of the most important contributions by the employee towards a PF Account featuring the Name with some exemptions. The employer will have to pay 5% of the employee’s basic salary towards this fund. But the contribution towards the EPF for the employees is exempted as per section 80 C.

Professional tax

It is a tax payable based on the tax slab of the employee, and it is applicable only in some states of India. All the states have their own rules and regulations regarding the professional form. The amount deducted from the tax payable income appears on the deduction side of your payment slip.

What is the Salary Slip?

A salary slip is a document provided by employers to employees, detailing their earnings and deductions for a specific pay period. It includes information about salary, allowances, taxes, and other deductions.

Why is an understanding of Salary slip important?

Understanding a salary slip is crucial for employees to have clarity about their earnings and deductions. It helps in financial planning, budgeting, and ensures that the correct amount is being paid and deducted.

Why is a Salary Slip Important?

A salary slip is vital because it provides transparency in the employee-employer financial relationship. It helps employees track their earnings, deductions, and benefits, enabling them to make informed financial decisions.

How can I check my salary slip?

Employees can typically access their pay slip through their company's HR or payroll system. It may be available as a physical document or in digital format through an employee portal or email.

What is the impact of Standard Deduction on Salary Slip?

Standard Deduction is a fixed amount deducted from an employee's gross salary to reduce taxable income. It lowers the overall taxable income, resulting in lower income tax liability. Understanding its impact on a salary slip is essential for tax planning and optimising financial resources.

If you want to be sure of the  Pay Slip Format , then the help of the experts such as Vakilsearch can be of good help here.

  • Best Payroll Software In India
  • To Choose A Payroll Service Provider
  • HR Laws In India

Informative Salary Slip

Where to Find Templates and Tools for Designing an Informative Salary Slip?

Introduction In the intricate landscape of payroll administration, crafting an informative salary slip is a pivotal aspect of transparent and…

Distribute Salary Slips to Employees

When and How to Distribute Salary Slips to Employees?

Introduction Managing a company’s payroll is a multifaceted task that involves various processes, and one crucial aspect is the timely…

Effective Salary Slip Format

What to Include in an Effective Salary Slip Format?

What is a Salary Slip? A salary slip is a crucial document issued monthly by employers to employees, outlining a…

How to Create Salary Slip Format in Excel?

How to Create Salary Slip Format in Excel?

What Does Salary Slip Mean? A salary slip, also called a payslip, is a document issued by an employer to…

business

Understanding G-Secs and How to Invest in Them for Business?

G-secs refer to government securities or, in other words, loans or capital issued by the government. The biggest advantage associated…

How to Check First Information Report - Vakilsearch - Blog

Startups to Continue Receiving a Tax Holiday

Businesses of all sizes and types have been having a tough year courtesy of the coronavirus pandemic. The Indian government…

Mistakes to Avoid During Tax Return Filing NRI

How the Rupee Depreciation is Enticing NRIs in Real Estate?

The Indian currency has depreciated as much as 5.2% against the US dollar in 2022 so far. The rupee’s depreciation…

Subscribe to our newsletter blogs

Private Limited Company Registration Private Limited Company with Indian and Foreign Shareholders One Person Company Registration Limited Liability Partnership (LLP) Registration Partnership Firm Registration Subisdary Company Registration Subsidiary of an Indian Company in India Public Limited Company Registration Section 8 (Not-for-Profit) Company Registration Trust Registration Society Registration USA Company Incorporation Register a NBFC Company in India NIDHI Company Registration Producer Company Registration Digital Signature Certificate (DSC) Tax Deduction Account Number (TAN) Trademark Registration - India Trademark Renewal International Trademark Application Trademark Ownership Transfer Respond to a Trademark Objection File a Trademark Opposition Judgments Vakil GPT Libra Winding Up of Company roDTEP Private Company into OPC Patent Search Apply for a Provisional Patent Apply for a Patent Changes in IEC Changes in GST LUT Application ITR for LLP Business Ideas Business Loans NGO Registration Change the Objectives of Your Company Sole Proprietorship Scope of Work and Deliverables Agreement Service Level Agreement Business Compliance PIL Web Ecommerce Development Hallmark Registration Caveat Petition OSP License GDPR APEDA Registration Money Recovery Vendor Termination RBI Compounding Application Patent Infringement Labour Law Non Compete Agreement Relinquishment Deed Spice Board Registration Convert Private to Public Limited Company Posh Compliance Trademark Assignment Restitution Of Conjugal Rights Company Name Search Corporate tax e-FIR Property Documents Verification Trademark Infringement Well Known Trademarks Copyright Infringement Intellectual Property Employment Agreement Income tax Notice Financial Agreement Trademark Search NRI Legal Services Professional Tax for Employees Professional Tax for Directors ESI Registration PF Registration ESI Filing PF Filing Cancellation of GST Professional Tax Registration DIPP Certification Basic Food License State Food License Central Food License Fundraising PF and ESI Filings PF and ESI Registration Professional Tax Filing Shops and Establishment Act Registration Importer Exporter Code Registration SSI / MSME Registration Trade License Registration Copyright Registration Change in trademark application Trademark Withdrawal Payroll Services Goods & Service Tax (GST) Registration Trademark Watch ISO Registration Hearing Labour Welfare Fund Registration USA Company Compliances NGO Compliance Non-Disclosure Agreement Memorandum of Understanding (MoU) Get Advice from a Lawyer Get a Detailed Legal Opinion from an Expert Commercial Rental / Lease Agreement Leave and License Agreement Prepare a Power of Attorney Agreement Review Shareholders' Agreement Term Sheet Review a Term Sheet given by an Investor Share Purchase Agreement Terms of Service and Privacy Policy Terms of Service Privacy Policy Get Basic Legal Advice Get Basic Legal Opinion Get an Advanced Legal Opinion Get Expert Legal Opinion Legal Agreement Legal Notice Disclaimer Draft a Consumer Complaint Founders Agreement Franchise Agreement Vendor Agreement Master Service Agreement Joint Venture Agreement Freelancer Agreement Consultancy Agreement Profit Sharing Agreement Cheque Bounce Notice Freelancer / Contractor's Agreement Loan Agreement Terms of Service and Privacy Policy Website Terms of Service and Privacy Policy App Terms of Service and Privacy Policy - Web & App Probate of Will Divorce Consultation Property Registration Property Consultancy - opinion Management of a Trust Management of a Society Dissolution of Partnership Firm Accounting and Book Keeping GST Filings TDS Filings File Annual Returns for your Private Limited Company Get help from a Company Secretary for your Private Limited Company Get help from a Company Secretary for your Limited Liability Partnership Change your Company Name Change the Objectives of Your Company Appointment of a Director Removal/Resignation of a Director Change the Official Address of Private Company Close your Private Limited Company Convert your Partnership into a Private Limited company Convert your Sole Proprietorship into a Private Limited Company Convert your Private Limited Company into an LLP Convert your Private Limited Company into a Public Limited Company Income tax returns - Propreitorship Firm Financial Projections for Bank Loan Investor Pitch Deck CA/CS certification Increase in Authorized Capital of your Company Change the Objectives of Your LLP Change your LLP Name Adding a Designated Partner Change the Official Address of Your LLP Increase in Contribution to your LLP Change LLP Agreement Close your Limited Liability Partnership Convert your Sole Proprietorship into an LLP Compliance - Section 8 Close down your Not-for-Profit (Section 8) Company Get Share Certificates for your Company Replacement of a Director Change in the Designation of Director Adding a Partner in LLP Replacement of Designated Partner Resignation of Designated Partner Resignation of Partner Change Name of your LLP Close your Partnership firm Close your Proprietorship firm Close your Public Limited Company Convert your LLP into a Private Limited Company Convert your Partnership into an LLP Convert your Sole Proprietorship into a Partnership Audit your Company Valuation of Business Convert your Private Limited Company into an One Person Company Transfer of Shares Change in Authorized Capital of your Company Employee Stock Options (ESOP) Issue of New Shares (To existing promoters) RBI & SECRETARIAL COMPLIANCES FOR FOREIGN INVESTMENT ISSUE OF NEW SHARES IN YOUR COMPANY (TO OTHER THAN EXISTING PROMOTERS) Employment Agreement with ESOP Due Diligence of Company Convert your One Person Company into a Private Limited Company DIR-3 KYC Filing Issue of Convertible Debentures (CCD) Permanent Account Number (PAN) Religion change Gender Change Apply for Name Change - Minor Name Change Application FSSAI Marriage Certificate Mutual Divorce Court Marriage Public Notice - Gazette Notification Make a Will Residential Rental Agreement Gift Deed File your Income Tax Returns - Salaried Individual Logo design Free GST Registration Internal Start a Branch Office in India Get a Section 80 G Tax Exemption Trademark Search ISI Registration Apply for Birth Certificate Employment Contract without ESOP Sale Deed CA Advisory Service Apply for Succession Certificate Legal notice for recovery of dues Apply for legal heir certificate Apply for Psara License RERA complaints Main Service Startup India Registration Integrated Accounting + GST Talk to a CA Talk to a Lawyer Talk to a CS FCRA Registration FCRA Renewal Change in Member or Nominee of OPC Change in Particulars of Director Creation or Modification of Charge Satisfaction of Charge Conversion of Dormant Company to Active Company Conversion of Loan into Equity Shares Change the Official Address of Your Business (from one state to another state ) Get Support on Opening Current Bank Account Design registration Legal Metrology NGO Deed Drafting File an Opposition for Brand Infringement Darpan Registration Cessation of Partner or Designated Partner SEBI IA Registration Surrender of DIN/DPIN Foreign Liabilities and Assets (FLA) Return Change the Official Address of Your LLP (From One State to Another State) Change the Official Address of Your Company (Outside the City) CSR-1 Registration Service

Bengaluru - Bangalore Chennai Cochin Coimbatore Delhi Gurugram - Gurgaon Hyderabad Kolkata Mumbai Noida Thiruvananthapuram Vijayawada Visakhapatnam Addanki Adilabad Agartala Agra Ahmedabad Aizawl Ajmer Akola Alappuzha Aligarh Allahabad Alwar Amaravati Ambala Amritsar Anand Anantapur Andaman Aurangabad Aurangabad-Bihar Azamgarh Badaun Badlapur Bagaha Bagalkot Bahadurgarh Baltora Baraut Bardhaman Bareilly Bathinda Begusarai Belgaum Bellary Berhampur Bhadrak Bhadreswar Bhagalpur Bharuch Bhavnagar Bhayandar Bhilai Bhilwara Bhiwandi Bhiwani Bhopal Bhubaneswar Bidar Bijapur Bikaner Bilaspur Bina Etawa Birati Birbhum Bishalgarh Botlagudur Budaun Budgam Buldhana Bundi Cachar Calicut Chandauli Chandigarh Chandigarh-Punjab Chhapur Chhatarpur Chhindwara chidambaram Chitradurga Chittoor Chittorgarh Churu Cooch Behar Cuddalore Cuttack Dahod Daman Darbhanga Dehradun Deoghar Dera Bassi Dewas Dhaka Dhanbad Darbhanga Dharmapuri Dharmanagar Dharwad Dhule Dimapur Dindigul Dispur Dombivli Dumarkunda Dungri Durgapur Dwarka Eluru Erode Faridabad Firozabad Firozpur Gandhidham Gandhinagar Gangtok Ganjam Gannavaram Ghaziabad Gonda Gorakhpur Greater Noida Gulbarga Guntur Gunupur Guwahati Gwalior Haldwani Hansi Hanumangarh Haridwar Hisar Hoshiarpur Hosur Howrah Hubli Idukki Imphal Indore Itanagar Jabalpur Jagdalpur Jaipur Jalandhar Jalgaon Jalgaon Jamod Jamalpur Jammu Jamnagar Jamshedpur Jamui Jaunpur Jhansi Jind Jodhpur Jorhat Kadapa Kakinada Kalahandi Kalimpong Kalyan Kangra Kankroli Kannur Kanpur Kanyakumari Kapurthala Karad Karaikal Karaikudi Karimnagar Karjat Karnal Karur kasganj Kashipur Katihar Katni Kavaratti Khamgaon Khammam Kharagpur Khordha Kochi Kohima Kolhapur Kollam Koppal Kota Kottayam Kozhikode Krishnagiri Kullu Kumbakonam Kurnool Kurukshetra Lalitpur Latur Loharu Lucknow Ludhiana Madhubani Madikeri Madurai Mainpuri Malappuram Malda Mandi Mandsaur Mangalore Mapusa Margao Marthandam Mathura Meerut Midnapore Mirzapur Mohali Mone Moradabad Morbi Morena Muktsar Mundra Muzaffarnagar Muzaffarpur Mysore Nabarangpur Nadiad Nagapattinam Nagaur Nagercoil Nagpur Nainital Nalanda Namakkal Nanded Nandigama Nashik Navi Mumbai Navsari Nellore Nilgiris Nizamabad Ongole Ooty Other Cities Palakkad Palampur Palgadh Pali Panaji Panchkula Panipat Paradip Pathanamthitta Pathankot Patiala Patna Pilani Port Blair Pratapgarh Puducherry Pune Raichur Raigarh Raipur Rajahmundry Rajapalayam Rajkot Ramanathapuram Ramgarh Ranchi Raniganj Ratlam Rewa Rohtak Roorkee Rourkela Rupnagar Saharanpur Salem Sangli Sangrur Satara Secunderabad Shillong Shimla Shimoga shirdi Sikar Siliguri Silvassa Singrauli Sirmaur Sirmur Sitamarhi Sitapur Sivaganga Sivakasi Siwan Solan Solapur Sonipat sonla Sri Ganganagar Srinagar Surat Talbehat Tezpur Thalassery Thane Thanjavur Theni Thoothukudi Thrissur Tiruchirappalli Tirunelveli Tirupati Tirupur Tiruvannamalai Tumkur Udaipur Udupi Ujjain Una Uppala Uttarpara Vadodara Vapi Varanasi Vasai Vellore Vidisha Vill Damla Viluppuram Vinukonda Virar Virudhunagar Warangal Washim Yamuna Nagar Yelahanka Zirakpur Select City*

Email Enter valid email addres

You'll be redirected to payment page to reserve a callback from our expert

  • 90% Refund @Courses
  • Accountancy
  • Business Studies
  • Commercial Law
  • Organisational Behaviour
  • Human Resource Management
  • Entrepreneurship

Related Articles

  • DSA to Development
  • How to calculate Income Tax on salary (with example)?
  • What is Direct tax?
  • How to Save Tax in FY 2023-24?
  • Income Tax Exemptions and Deductions for Salaried Individuals
  • How to File ITR?
  • Corporate Tax: Meaning, Corporate Tax Rate, Corporate Tax Rebates
  • Documents required to file ITR
  • Types of ITR | Which ITR Should I File?
  • Indirect Tax : Features, Types, Advantages & Disadvantages
  • New Income Tax Slab for FY 2023-24
  • What is Income Tax? | Tax Slab | Deductions Allowed
  • What is Capital Gain?|Types and Capital Gains Tax Exemption
  • What is Form 16? | How to download Form 16?
  • Hindu Undivided Family | HUF Full form, Meaning and Tax Benefits
  • Short Term Capital Gains Tax (STCG) : Meaning, Calculation and Exemptions
  • What is House Rent Allowance? |How much exemption can be claimed on HRA ?
  • What is Form 26AS ?
  • What is Section 80C ? | Deductions under 80C
  • Exempted Income: Meaning, and Types

Salary Slip | Meaning, Format and Components

What is a salary slip.

A salary slip is an important document that is issued by an employer to an employee as a record of the employee’s salary and other deductions for a given duration. It is typically issued on a monthly basis and includes details such as the employee’s name, salary, and any deductions that have been made from the salary, such as taxes, insurance premiums, etc.

Format of a Salary Slip

 Salary Slip format

After payment of salary is done by the employer, a salary slip is issued and sent directly to the employees in either a printed hard copy or via mail. From the point of view of both employee and employer, a salary slip is a very important document as it contains all the important details, and also it serves as proof that salary has been paid and received. Also,

What are the Components of a Salary Slip?

The components of the salary slips can be broadly divided into two parts, i.e., Income and allowance provided by the employer and Deductions made in the income in the form of taxes.

A. Income & Allowance

1. Information of the employee: Name, position title, and payroll number are all mentioned first in the slip.

2. Pay period: The duration of the pay period for which the salary slip is generated is displayed here.

3. Gross salary: Before any deductions, this is the total amount paid to the employee. Different categories, such as base pay, overtime pay, and any bonuses or commissions, may be subdivided within it.

  • Basic: The major part of the total salary is comprised of basic. Usually, 40% of gross income or 50% of an individual’s CTC is paid as Basic.
  • Dearness Allowance: DA is provided to the employees on the basis of the proportion of their base salary. This provision is provided to lessen the effects of inflation. It is fully taxable and must be disclosed when filing income tax returns.
  • House Rent Allowance(HRA): House Rent Allowance(HRA) is a component of the salary provided by employers to employees to meet the cost of renting a house or accommodation.
  • Conveyance Allowance: Any amount provided by the employer to the employees for the purpose of meeting the cost of travel incurred by the employees to reach the office.
  • Medical Benefits: Paid to employees on a predetermined schedule and a monthly basis for health-related expenses; fully taxable; and paid regardless of whether the employees submitted medical bills.
  • Special Allowance: Any allowance provided for any special occasion or after fulfillment of any task come under special allowance.
  • Performance Bonus: It is provided in appreciation for a worker’s efforts. Any type of incentives, bonuses, and evaluations that are directly related to the performance of the employees are included in this.

4. Net salary: This represents the employee’s final take-home pay after all deductions have been made. The employee will be paid this sum via direct deposit or a check.

5. Year-to-date (YTD) Totals: The employee’s gross compensation, deductions, and net salary for the year up to the current month are mentioned here. Tracking earnings and deductions over time can be facilitated by this.

6. Leave balance: Some pay slips may also include details about the employee’s remaining leave balance, such as the remaining paid leave, casual leave, sick leave, etc.

7. Employer details: This contains the name and contact details of the employer and payroll information.

B. Deductions

Any deductions from the employee’s gross pay, such as those for taxes, insurance premiums, and provident funds are included in this.

1. Tax Is Withheld at the Source: The employer withholds a specified amount of tax from the employee’s paycheck each month on behalf of the Income Tax Department.

2. Employee Provident Fund(EPF): Every month, a mandatory contribution is deducted from the salary of the employees in the name of EPF. 12% of the basic pay is deducted with the employer contributing the same. Section 80C of the Income Tax Act exempts employee contributions to EPF from taxes.

3. Professional Tax: A monthly deduction is made from an employee’s paycheck to pay the government a small sum of the tax.

Whether you're preparing for your first job interview or aiming to upskill in this ever-evolving tech landscape, GeeksforGeeks Courses are your key to success. We provide top-quality content at affordable prices, all geared towards accelerating your growth in a time-bound manner. Join the millions we've already empowered, and we're here to do the same for you. Don't miss out - check it out now !

Looking for a place to share your ideas, learn, and connect? Our Community portal is just the spot! Come join us and see what all the buzz is about!

Please Login to comment...

author

  • Sahil_Chhabra
  • Apple's New AI-powered Tool: Editing Through Text Prompts
  • Rebranding Google Bard to Gemini: All You Need to Know, Android App and Advanced subscriptions
  • Youtube TV's Multiview Update: Tailor Your Experience in 4 Easy Steps
  • Kore.ai Secures $150 Million for AI-Powered Growth
  • 10 Best IPTV Service Provider Subscriptions

Improve your Coding Skills with Practice

 alt=

What kind of Experience do you want to share?

Taxtolegal

Salary Slip Format in Word, Excel and PDF for Download

  • Last updated on: June 17, 2023
  • Under: Uncategorized

A salary slip or also referred to as a pay slip, is a document that is issued monthly by an employer to its employees. Explaining it in other words, it is a small piece of paper that is used to record the salaries of the employees. It comprises a detailed breakdown of employee salaries and deductions for a given period. The salary slip is either mailed to the employees or printed hard copies given to the employees. 

A company is legally bound to issue the salary slip periodically as proof of salary payment to its employees and deduction. Through this salary slip, the employees can know how much they will receive each month, and also they can use this information to calculate the amount of taxes they need to pay and calculate their net income after taxes deductions. The salary slip is of utmost importance to the employer and employee as it provides accountability and transparency. 

Important Information to be included in the salary slip

A salary slip comprises basic information like the company’s name, employee, designation, employee code, etc. Similarly, the salary components are divided into categories like income and deduction. Thus, the information included in the salary slip is as follows:

● Salary : This is the basic remuneration an employer gives its employees every month. It comprises all the types of payment received by an employee from their employer, such as fixed salary, overtime payment, commissions etc. The following detailed information is included in the salary statement earnings/income:

> Basic allowance- As the name suggests, this is the basic component of the salary, constituting 35-50% of the salary. The basic allowance is the first component in a salary slip. 

> Dearness Allowance- This allowance is paid to the employee to minimize the impact of inflation. It comprises 30% to 40% of the basic salary pay. Dearness allowance is calculated on the cost of living, which varies from location to location. Dearness allowance is a taxable component on the earning side of the salary slip right after the basic pay component. 

> House Rent Allowances (HRA)- As the name implies, HRA is paid to the employees for their house rent, which varies as per the location. It constitutes 40% to 50% of the basic pay.

> Conveyance and medical allowance- The conveyance allowance is paid to the employees to cover their travel costs from work to home and vice versa. Medical allowance is offered to the employees to cover their medical expenses. While the conveyance allowance is non-taxable, the medical allowance falls under taxation if it exceeds Rs 15,000 annually. 

> Leave Travel Allowance- This is offered to the employees to cover the cost of traveling of the employee and their immediate family members. However, this offered for up to two journeys undertaken in four calendar years. 

> Performance bonus and special allowance- Performance bonus is given to the employees as a mode of encouragement. In contrast, special allowances are given for meeting certain essential requirements. Both these allowances vary from company to company. 

> Other Allowances- In certain cases, employees are paid allowances for different purposes that are clubbed under other allowances. 

● Deductions : In the deduction section, all the deductions which the employer makes from the salaries paid to the employees, including the taxes, are included. Various deductions are included in this section, such as employees’ provident fund, professional tax, and tax deductible at source. The following components appear under the deduction section in the salary slip: 

> Employees provident fund- This is a compulsory contribution by an employee towards a provident fund account held in his name. Generally, an employer pays 12% of the employee’s salary towards the EPF account. 

> Tax deductible at source (TDS) – This is deducted by the income tax department on behalf of the employer. It is based on the tax slab as per the employee’s salary. 

> Professional tax This amount is deducted from the taxable income and appears on the deduction side of a salary slip. 

Salary slip format

● In Word- For creating salary slips in Word, you will either need to open an existing document or create a new one, where you need to enter all the information in the columns and save the file in pdf format.

● In Excel- one of the simplest ways to create a salary slip is by using Excel. For this purpose, you can use any worksheet available in Excel, where you need to enter all your required data in the given columns. The first column will include the employee’s name, and the rest will include the work details.

Useful information about salary slip

Total earnings- Total Deductions

        Gross Wage

Basic Wage + HRA+ Medical + Special Allowances +conveyance

   EPF

A minimum of 12% of the employee’s salary

The current employee’s contribution of 0.75% of their salary

4.81% of the basic pay of the employee is deducted as gratuity

       CTC

PF contributions + Gross Wage + Other benefits offered by an employer

A salary slip is a monthly document comprising a detailed analysis of an employee’s monthly salary breakdown. The salary slip consists of all the essential information related to the employee, such as the company’s name, employee code, designation, etc. A salary slip consists of two major parts: salary and deductions.

The salary part comprises basic pay, dearness allowance, HRA, TDS and information about other allowances. At the same time, the deduction consists of information about all the deductions made from the employee’s salary, such as EPF and taxes. A salary slip can be prepared by using an Excel worksheet or Word file to be mailed to the employee or given hard copies.

No Objection Certificate Format – Importance and Benefits

What is a no objection certificate? No Objection Certificate (NOC) is a vital document issued by an institute, organisation or…

INC 22 Form – Application for Change in Registered Office

The form inc-22 is a form that is required to be filed with the Ministry of Corporate Affairs according to…

A salary slip or also referred to as a pay slip, is a document that is issued monthly by an…

Don't get left out of the loop, make sure you subscribe to our newsletter below so you can be notified of our latest insights, tips, tutorials, sales and more!

This Post Has 0 Comments

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Salary structure and Payroll

Use case 1: What if one Salary structure has to be assigned to all the Employees ?

If a single Salary structure has to be assigned, it is preferable to create a structure for all the Employees, irrespective of their Salaries, but we can set formula based on which actual salary structures can be allocated to each employee in an organisation.

Go to Salary Structure --> select the Earning or deduction component --> Add formula

salary slip assignment

This way, salary will be calculated individually for each employee depending on their monthly income.

Use case 2: What if while generating a payroll, all the employees are not supposed to be fetched, payroll has to be created for selected employees?

Generally, while a payroll is being processed, there is an option --> Get Employees, once it is clicked, all the employees are fetched.

In case, there is only a selected list of employees payroll to be generated, it is preferable to select the employees by filtering on the basis of department, branch or designation, this way only selected list of employees belonging to the particular filter will be selected for payroll.

salary slip assignment

Previous Page

More From Forbes

Major league baseball team payroll disparity continues to escalate.

  • Share to Facebook
  • Share to Twitter
  • Share to Linkedin

A stack of 250$ and 1000$ dollar bills, US, 1987. (Photo by Alfred Gescheidt/Getty Images)

Major League Baseball is the only major American or Canadian professional sport that does not have a salary cap.

There are debatable arguments on both sides of the salary cap issue.

The Major League Baseball Players Association has consistently rejected the notion of a salary cap, or salary floor.

Baseball players feel more comfortable letting market trends and player performances dictate the salary structure.

What happens when a star player like Cleveland’s Josh Naylor reaches free-agency? Will the Guardians extend his contract? He’s an example of a growing number of young players that will eventually earn a massive pay day.

Some teams choose to trade players as they enter the final year before they are eligible for free agency.

MLB owners are free to create a salary structure for their club that meets their own personal comfort level, and their own willingness to pay.

Some owners and ownership groups have demonstrated payroll frugality that is greatly frustrating to fans.

Conversely, some owners and ownership groups have demonstrated roster construction that places little or no attention to player payroll.

NASA Urges U.S. Public To See April 8’s Total Solar Eclipse—And Drops A Home Truth

After two years of war, ukraine still has a thousand tanks, meet the billionaires buying up hawaii.

Given the absence of a salary cap, MLB and the Player’s Association have agreed to a taxing system which is designed to place a penalty on clubs with excessive payrolls.

MLB’s Competitive Balance Tax:

Clubs that exceed predetermined payroll thresholds are subject to taxation.

The Competitive Balance Tax, often called the Luxury Tax, is imposed on every dollar spent above the threshold.

The 2023 base threshold was $233 million.

Six 2023 MLB teams were required to pay Luxury Tax penalties. They were:

Mets-$100.8 million

Padres-$39.7 million

Yankees-$32.4 million

Dodgers-$19.4 million

Phillies-$7 million

Blue Jays-$5.5 million

Braves-$3.2 million

The 2024 base threshold will be $237 million.

NEW YORK, NEW YORK - SEPTEMBER 13: Detail view of a New York Mets logo patch on a player uniform ... [+] during a game against the Arizona Diamondbacks at Citi Field on September 13, 2023 in New York City. (Photo by Brandon Sloter/Image Of Sport/Getty Images)

Huge Payroll Disparity:

At this point of the offseason, the disparity in MLB payrolls has to be problematic for Commissioner Rob Manfred.

One need only look at Fangraphs projected estimates for 2024 MLB team salaries to realize the economic playing field differences are as wide and as deep as the Grand Canyon.

Here is a sample of estimated 2024 MLB team payrolls as noted by Fangraphs:

New York Mets- $ 315 million

Los Angeles Dodgers-$302 million

New York Yankees-$296 million

Philadelphia Phillies-$239 million

Compare those payrolls with these four MLB teams:

Oakland Athletics-$59 million

Pittsburgh Pirates-$81 million

Cleveland Guardians-$96 million

Tampa Bay Rays-$99 million

CLEVELAND, OHIO - SEPTEMBER 6: A detail of the Cleveland Guardians logo patch on the uniform during ... [+] the seventh inning against the Minnesota Twins at Progressive Field on September 6, 2023 in Cleveland, Ohio. (Photo by Brandon Sloter/Image Of Sport/Getty Images)

Differing Circumstances:

Teams with low payrolls have offered various reasons for their payroll levels.

1-Conflicts and lawsuits between MLB clubs and regional sports networks left several teams in limbo regarding potential television revenue for the coming season. Some of the issues are resolved, but many teams have taken a cut in their 2024 rights fees.

Teams had to wait for the conclusion of their legal battles with their regional networks to gain a truer picture of 2024 television revenue. Now, most have a clearer picture, allowing them to plan accordingly.

But months of uncertainty caused very conservative spending on free agents and player acquisitions.

When those same teams were realizing full value of their television contracts, several ownership groups were still restrained and frugal in their payroll budgets.

Teams like Cincinnati, Pittsburgh, Cleveland, Tampa Bay, Oakland, and Baltimore have been among clubs with low player payrolls.

Those teams do not swim in deep free agent water. They do not bid for high priced free-agent players like Shohei Ohtani, or Yoshinobu Yamamoto.

The clubs with minimal payrolls have been very careful to monitor spending on every player in their organization. Misjudgment on a player’s value can lead to widespread financial ramifications.

For example, in 2016, the Baltimore Orioles gave first baseman Chris Davis a seven-year, $161 million contract. At that time it was a huge financial commitment.

Davis did not come close to earning the contract value.

The Orioles have not made such a massive financial commitment to a free-agent since Davis.

On December 15, 2022, the Cleveland Guardians signed catcher Mike Zunino to a one-year, $6 million contract. Zunino was released June 21, 2023.

Also in 2022, the Guardians signed first baseman/designated hitter Josh Bell to a two-year, $33 million contract. When he failed to hit well, the team traded Bell to the Miami Marlins on August 1, 2023.

Deals like those for Davis, Zunino, and Bell have a tremendous impact on clubs like Baltimore and Cleveland. Their team payroll philosophies do not have room for missteps.

The Guardians were able to extend star Jose Ramirez on a team-friendly contract because he wanted to remain with Cleveland. His case was not the norm.

More than mere hiccups in their payroll structure, when a team like the Guardians miss on a free-agent calculation, it casts a huge shadow on their appetite to again enter the free-agent market.

2- Many teams have relied upon young, inexpensive players still under team control when constructing major league rosters.

Younger players result in less player payroll.

Once again, teams like Baltimore and Cleveland have players that remain years away from free-agency. Team control allows the club to maintain a player payroll that meets the comfort level of ownership.

However, arbitration years prior to free-agency get expensive,

Some teams, the Tampa Bay Rays being one, have traded players prior to them becoming too expensive for ownership’s comfort level.

The Rays have frequently targeted players on opposing teams to trade for their own players who are getting closer and closer to free-agency. The strategy has worked for them.

CLEVELAND, OHIO - JUNE 22, 2023: A closeup view of the Oakland Athletics logo on the jersey worn by ... [+] JP Sears #38 after the third inning against the Cleveland Guardians at Progressive Field on June 22, 2023 in Cleveland, Ohio. (Photo by Nick Cammett/Diamond Images via Getty Images)

Conclusions:

The disparity between and among MLB clubs continues to be an issue.

However, spending money on payroll does not guarantee success.

The Mets, the Padres, and the Yankees all paid Luxury Tax bills. None made the playoffs.

To their credit, some teams with a history of prudent payroll spending have stepped up to sign young, star quality players to long-term contracts.

Under the leadership of general manager John Hart years ago, the Cleveland Indians bought out the arbitration years of young players with nice, inflated contracts. But that trend stopped.

Now, teams like the Royals (Bobby Witt Jr.) and the Brewers (Jackson Chourio) are just two recent examples. Will that type of business calculation continue?

Huge stars seem to navigate to the higher payroll clubs. That’s a problem.

Is it good for MLB to watch free-agents Shohei Ohtani, Yoshinobu Yamamoto, and Teoscar Hernandez all sign with the Dodgers this winter?

That remains in the eye of the beholder.

Dodgers fans love it.

Sooner or later, to this old scout, Major League Baseball will have to come to grips with the vast disparity in team payroll.

How they accomplish that is a story for another day.

Bernie Pleskoff

  • Editorial Standards
  • Reprints & Permissions

Salary Structure

Salary Structure is the details of the salary being offered to an Employee, in terms of the breakup of the different components constituting the compensation.

Any changes to the Salary Structure i.e. among the components can have a major impact on what the Employee does, such as the kind of tax exemptions claimed.

Frappe HR allows you to define the Earnings and Deductions of a Salary Structure, Payroll frequency, and Payment Mode among other features.

To access Salary Structure, go to:

Home > Human Resources > Payroll > Salary Structure
  • 1. Prerequisites

Before you create a Salary Structure, it is advisable you have the following:

  • Salary Component
  • 2. How to create a Salary Structure
  • Go to the Salary Structure list, click on New.
  • Enter the Salary Structure Name.
  • Select the Company Name and Payroll Frequency.

Save and Submit.

  • 2. Features
  • 2.1 Earnings and Deductions

Earnings specify the Salary Components that are earned by an Employee. These components typically include basic, allowances, bonuses, and incentives that are added to the employee's Total Salary. On the other hand, Deductions specify the Salary Components that are deducted from the employee's Total Salary. These typically include the taxes.

Note: Only Salary Components set as 'Earnings' will be shown in the Earnings table and components set as 'Deductions' will be shown in the Deductions table.

To create Earnings and Deductions, select the Salary Component in the Component column. Enter the Formula/Condition if not previously specified while creating the Salary Component . Additionally, you can also enter a pre-defined amount in the Amount column.

Salary Structure

Note: Make sure to click on the downward arrow and enable the 'Amount based on formula' checkbox in case the Salary Component is calculated using a formula.
  • 2.2 Account

In this section, the Mode of Payment and the Payment Account that is used to pay the salary can be specified.

  • 2.3 Salary Structure for Salary based on Timesheets

In Frappe HR you can also define the Salary Structure for Salary Slip based on Timesheet, which allows the Company to pay there Employee as per working hours.

Steps for creating Salary Structure based on Timesheets:

  • Go to Salary Structure List, click on New.
  • Select checkbox Salary Slip Based on Timesheet .
  • Select the Salary Component.
  • Enter the Hour Rate. Based on the Rate entered, the amount for Working hours for the selected Salary Component will be calculated accordingly.

Create Salary Slip based on Timesheets

  • 2.4 Leave Encashment Amount Per Day

In case there are encashable leaves for an Employee, you can define the leave encashment amount per day in this field for this particular Salary Structure. Based on the 'Earning Component' set in the encashed Leave Type and the amount per day, the value for the Salary component will be calculated accordingly in the Salary Slip.

  • 2.5 Max Benefits (Amount)

In this field, the Max Benefits Amount for the Salary Structure can be specified. If this field is filled, make sure the Salary Structure has a Salary Component with the "Is Flexible Benefits" checked, against which this amount will be paid.

Once all the information is saved and submitted, you can assign the Salary Structure to an Employee either through the Assign Salary Structure button or by creating a new Salary Structure Assignment through the dashboard.

You can also assign the created Salary Structure to several employees based on the Employee Grade , Department , Designation , etc. through the 'Assign to Employees' button. Additionally, Salary Slip can also be directly created through the dashboard.

  • 3. Related Topics
  • Salary Structure Assignment
  • Payroll Entry

ERPNext allows you to define the Earnings and Deductions of a Salary Structure, Payroll frequency, and Payment Mode among other features.

In ERPNext you can also define the Salary Structure for Salary Slip based on Timesheet, which allows the Company to pay there Employee as per working hours.

Previous Page

On this page

IMAGES

  1. 9+ Salary Sheet Slip Formats

    salary slip assignment

  2. Simple Salary Slip Formats in Excel

    salary slip assignment

  3. Salary Slip Templates

    salary slip assignment

  4. EXCEL of Simple Salary Slip.xlsx

    salary slip assignment

  5. How To Make Salary Slip Format in PDF, Excel, Word

    salary slip assignment

  6. 100% Free Salary Slip Templates for Corporate (Excel / Word)

    salary slip assignment

VIDEO

  1. How to check your salary slip in HONO

  2. Salary slip of IDBI executive 2023

  3. How to Create Salary Slip in MS Excel

  4. How to create salary slip in mobile excel 2021| Easily create monthly salary slip in Android💥

  5. Don’t have payslips or salary slips #payslip #salary solution of salary slips #india #freshers

  6. Don’t edit your Salaryslip or payslip or employement documents #india #freshers #salary #payslip

COMMENTS

  1. Salary Slip

    A salary slip can be defined as a document that contains the details of an employee's salary. These details include the basic pay, bonuses, deductions, etc., that are given to the employee every month by the employer. The employees often get soft copies of the same and sometimes are given hard copies as well. EXCEL FORMAT OF SIMPLE SALARY SLIP

  2. Salary Slip: Format And Templates For HRs In 2023

    An employee's pay in cash or their bank account after tax deductions is their net salary. Net Salary = CTC - Provident Fund Contribution - Gratuity - Income Tax (TDS) 3. The standard format of salary slip. The salary slip format mainly has two parts - Income and Deductions.

  3. How to Create Salary Slip (Free Template)

    A salary slip, also known as a pay stub or paycheck, is a document that outlines the details of an employee's earnings and deductions during a specific pay period. Understanding the format and components of a salary slip is crucial for both employers and employees, as it ensures transparency, accuracy, and compliance with legal requirements.

  4. Salary Slip: A Comprehensive Guide to Formats, Examples, and Online

    1. Personal Information The salary slip begins with the employee's personal details, including their name, employee identification number, department, and designation. This section helps identify the employee associated with the salary slip and ensures accuracy in recordkeeping. 2. Earnings

  5. Payslip Template in Excel

    Payslip or salary slip template in Excel is the receipt given by the employer to their employees every month upon payment of salary to the employee for the services rendered in the month. A payslip consists of all kinds of earnings and deductions under various heads as per the norms given by the government in the respective financial year.

  6. Payroll Setup

    Assign Salary Structures to each Employee via Salary Structure Assignment Generate Salary Slips via Payroll Entry. Book the Salary in your Accounts. Payroll Period Payroll Period, in Frappe HR, is a period for which Employees get paid for their occupation with the Company.

  7. Salary Slip

    A salary slip contains the monthly break-up of earnings and deductions. It also includes components that are tax-deductible. The break-up of earnings, i.e., basic salary, HRA, medical allowance, travel allowance. As well as deductions i.e., profession tax, EPF, and TDS. TDS helps an employee plan his/her tax liability in advance.

  8. Components of Salary Slip

    A salary slip is a vital document that is well recognized by all business establishments. It has comprehensive details about the employee, employer, any deductions, and other things. So, let us have a look at the components of a salary slip.

  9. Salary Slip Format in Excel With Formula

    The main components of a salary slip are Basic Pay, House Rent Allowance (HRA), TA, DA, Reimbursements, Medical, Bonus, etc. it also contains the details of statutory tax deductions like PT, PF, TDS, insurance cost, etc.

  10. Salary slip or Payslip format

    Payslip is a document which an employer provides to the employee as proof of salary. It contains the description of all income earned, exemptions, deductions and taxes cut from your salary. Employers can share the payslip with employees in paper or mail format. Both the type of payslips hold the same importance and validity.

  11. Assignment (Salary Slip)

    Assignment (Salary Slip) - Free download as Excel Spreadsheet (.xls / .xlsx), PDF File (.pdf), Text File (.txt) or read online for free. m

  12. Salary Slip: Importance, Components, and Sample Template

    It includes the basic salary. The basic salary is one of the essential elements of the salary and generally comprises at least 35 to 40% of the full salary. It forms the basis for determining other elements of your monthly pay slip. The first element on the earning sites of the payslip is always to calculate the basic salary.

  13. Salary Slip Assignment

    In this video, you will learn about "How to make Salary Slip assignment? What is VLOOKUP function and how to use it? What is Macro and how to add it in Excel...

  14. Salary Slip

    1. Information of the employee: Name, position title, and payroll number are all mentioned first in the slip. 2. Pay period: The duration of the pay period for which the salary slip is generated is displayed here. 3. Gross salary: Before any deductions, this is the total amount paid to the employee. Different categories, such as base pay ...

  15. Salary Slip: Components, Format, Deductions, Taxation in Salary Slip

    A salary slip or payslip is a document issued monthly by an employer to its employees. It contains a detailed summary of an employee's salary and deductions for a given period. This particular slip can be either a printed copy or sent to the employees via email.

  16. Salary Slip Format in Word, Excel and PDF for Download

    Salary slip format. In Word- For creating salary slips in Word, you will either need to open an existing document or create a new one, where you need to enter all the information in the columns and save the file in pdf format. In Excel- one of the simplest ways to create a salary slip is by using Excel.

  17. Salary Slip

    A salary slip is a document issued to an employee. It contains a detailed description of the employee's salary components and amounts. ... Salary Structure Assignment. 2. How to create a Salary Slip. Go to Salary Slip, Click on New. Select Employee. On selecting Employee all details of the Employee will be fetched from Salary Structure which ...

  18. Salary Slip Limited Company For Microsoft excel Advance Formula

    87K Share 4.5M views 4 years ago Excel Learn:- Salary Slip Limited Company For Microsoft excel Advance Formula With the help of this video, you will learn how to make salary slip of limited...

  19. Pay Slip at Personnel Assignment Level

    The pay slip displays the following data: Name of the employee, location and the period for which the system generated this pay slip. Person ID and the ABN for which the system generated the pay slip, and the date of processing the payments. For example, the sample pay slip displays Person ID 13405 for the ABN 10238021211.. Personnel Assignment number for which the system generated the pay slip.

  20. Salary structure and Payroll

    Go to Salary Structure --> select the Earning or deduction component --> Add formula. This way, salary will be calculated individually for each employee depending on their monthly income. Use case 2: What if while generating a payroll, all the employees are not supposed to be fetched, payroll has to be created for selected employees? Generally ...

  21. Salary structure and Payroll

    Go to Salary Structure --> select the Earning or deduction component --> Add formula. This way, salary will be calculated individually for each employee depending on their monthly income. Use case 2: What if while generating a payroll, all the employees are not supposed to be fetched, payroll has to be created for selected employees? Generally ...

  22. Salary Component

    The different components that make up the Salary Structure are called as Salary Components. Salary paid to the employees comprises of several different components, such as basic salary, allowances, arrears, etc. Frappe HR allows you to define these Salary Components and also specify its various attributes. 1.

  23. PDF Dixon v City of New York

    2024 NY Slip Op 30471(U) February 13, 2024 Supreme Court, New York County Docket Number: Index No. 161050/2022 Judge: Hasa A. Kingo Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service.

  24. Major League Baseball Team Payroll Disparity Continues To Escalate

    Six 2023 MLB teams were required to pay Luxury Tax penalties. They were: Mets-$100.8 million. Padres-$39.7 million. Yankees-$32.4 million. Dodgers-$19.4 million. Phillies-$7 million. Blue Jays-$5. ...

  25. Salary Structure

    Steps for creating Salary Structure based on Timesheets: Go to Salary Structure List, click on New. Select checkbox Salary Slip Based on Timesheet. Select the Salary Component. Enter the Hour Rate. Based on the Rate entered, the amount for Working hours for the selected Salary Component will be calculated accordingly.