What is a salary slip or a pay slip?
A salary slip or payslip is the official document that you get from your employer after you have worked for them for a period of time. A salary slip or payslip is one of the most important documents in a business. It contains all the information regarding your employee’s pay, deductions and taxes. If you have employees, then it is important for you to issue this document regularly so that there is no confusion among them about their income. You need to keep a copy of this document with you at all times. Salary slips are used for tax purposes, custom purposes and other legal issues related to pay slips. As an employee, you should always ensure all the figures in the salary slip are accurate. For this, you can use ctc calculator or other such calculators.
Who gets a Salary Slip?
Employers are required to give employees a salary slip for each pay period. The law requires that employers provide all employees with a copy of their salary slip in a format that allows them to calculate how much they have earned each week or month. Employees should receive their salary slips at least twice per year, once in January and again in July.
Employees must also be provided with information about deductions made from their wages, such as tax contributions and other mandatory deductions, and be told how much money is left over after these deductions have been made. Employers may not make any deductions from an employee’s wages that are not required by law.
Components of a payslip
The format of a salary slip is different in every company. The format given below is used by the major companies in India.
- Company Name, Logo and Address, Salary Slip Month and Year:
The first thing to look at is the company name and address. It should be written on top of the page in bold letters. If it is not present then you need to add it.
- Employee Name, Employee Code, Designation, Department:
This part of the salary slip is usually filled by the HR manager or head of the department. In case of a seniority slip, it can be filled by the HR manager but if it has been provided by him then he should be mentioned as well. If there is more than one employee working under a single designation then their names should be mentioned here as well. It should also include the employee’s PAN/Aadhaar number and bank account number for deduction from salary for contribution to PF account etc.
- Employee PAN/Aadhaar Number
This number should be mentioned in the top right corner of this section along with the bank account number so that one can check their salary/allowances online from time to time as per their requirement
- EPF Account Number, UAN (Universal Account Number), Provident fund payment, Salary
EPF account number is mandatory for all salaried employees and it has to be written in bold black ink with spaces between numbers and words. The gratuity calculator formula would generally use the values mentioned in this part of the payslip to calculate the value of gratuity
- Working days, leaves
Total work days include actual working days and leave days taken by an employee during the year (e.g., if an employee worked for 45 days during this year then his total work days would be 45). Effective work days include working hours when a person works on three consecutive days or more than eight hours in one day or more than 24 hours in one week or more than 48 hours in one month or more than 60 hours per week or 72 hours per month or 120 hours per quarter etc.