Salary slip format
A payslip has two audiences: the employee, who wants to understand what they were paid, and everybody who might later ask you to prove it. A good one answers both without anybody having to ask a follow-up question.
| Earnings | Amount | Deductions | Amount |
|---|---|---|---|
| Basic | 18,000.00 | Provident fund | 2,160.00 |
| House rent allowance | 7,200.00 | ESI | 236.00 |
| Conveyance | 1,600.00 | Professional tax | 200.00 |
| Overtime — 11.5 hrs | 1,587.00 | Advance recovery | 2,000.00 |
- Employer’s name and address
- Employee name, code and designation
- The pay period
- Days paid, leave taken and any loss of pay
- Each earning component, listed separately
- Each deduction, listed separately
- Gross earnings, total deductions and net pay
- Statutory identifiers — PF and ESI numbers where applicable
- Mode of payment and the bank account credited
Days paid belongs on it
Most payslip queries are not about the rates; they are about the days. Showing days paid, leave taken and loss of pay answers the question before it is asked, which is worth more than any other line on the document.
List components separately
Basic, HRA, allowances and each deduction on their own lines. A single "salary" figure is impossible to check, and it is also useless to the employee applying for a loan.
Statutory deductions
Provident fund, ESI and professional tax where they apply, computed on the correct base, with the employer’s share accounted for in the books even though it does not appear as an employee deduction.
Payslip questions
What must a salary slip show?
The employer and employee identity, the pay period, days paid and any loss of pay, each earning and each deduction separately, gross, total deductions and net pay, and the mode of payment. Statutory identifiers where PF or ESI apply.
Is an employer required to give payslips?
Obligations vary with which labour legislation applies to your establishment, but issuing them is standard practice and you will be asked for them — by employees, by banks and in any dispute.
How should overtime be shown?
As its own earning line with the hours stated, not folded into basic pay. Overtime that cannot be checked against hours is the most frequent cause of a payroll argument.
Should the employer’s PF contribution appear?
It is not an employee deduction so it does not reduce net pay, but many employers show it separately as part of cost to company. It must be accounted for in the books either way.
Related
Generate payslips from real attendance
In tBiz the days on the payslip come from the attendance register, not a second count.