A salary slip (payslip) is the monthly statement of what you earned, what was deducted and what you took home. Employers must issue one under the Code on Wages; employees need it for loans, visas, rentals and tax filing. "Salary slip format" is searched by both sides — employers who want a compliant template and employees decoding theirs.
Standard layout
| Section | Lines |
|---|---|
| Header | Employer name & address, month, employee name, ID, designation, department, date of joining, PAN, UAN (PF), ESI number, bank account (masked), days paid / LOP days |
| Earnings | Basic, DA, HRA, conveyance, special allowance, overtime, bonus/incentive, arrears |
| Deductions | Employee PF, ESI, professional tax, TDS (income tax), loan/advance recovery, LWF |
| Totals | Gross earnings, total deductions, net pay, net pay in words |
| Footer | Employer contributions (PF, ESI) for information; "computer-generated, no signature required" or authorised signature |
The wage slip generator prints this on 80 mm thermal or A5 for daily-wage and small-team staff; the team payroll calculator computes the numbers for up to ten people.
Earnings explained
- Basic — the core wage; under the Labour Codes basic + DA must be at least 50% of CTC. PF, gratuity and bonus are computed on it.
- DA (dearness allowance) — inflation-linked, common in government/PSU; private firms often fold it into basic.
- HRA — house rent allowance, usually 40–50% of basic; partly tax-exempt under the old regime if you pay rent (HRA guide).
- Conveyance / LTA / medical — fixed allowances; largely taxable now (standard deduction replaced most exemptions).
- Special allowance — the balancing figure to reach gross; fully taxable.
- Overtime — double the ordinary rate beyond 8 h/day or 48 h/week under the OSH Code.
- Bonus — statutory bonus (8.33–20%) for wages ≤ ₹21,000, or performance bonus.
Deductions explained
- Employee PF (12% of basic + DA) — mandatory up to the ₹25,000 wage ceiling (raised 17 Sep 2026); goes to your EPF account. EPF explainer.
- ESI (0.75% of gross) — if gross ≤ ₹21,000; medical cover.
- Professional tax — state levy up to ₹2,500/year (slabs); deductible under the old regime.
- TDS — income tax estimated for the year and deducted monthly, based on your regime and declarations. Zero for most people up to ₹12.75 lakh under the new regime (in-hand calculator).
- LWF — labour welfare fund, a few rupees in some states.
- Recoveries — advances, canteen, notice buyout in the final month.
What employers must include
The Code on Wages and state rules require a wage slip showing: wage period, days worked, rate of wages, gross wages, each deduction with reason, and net wages — issued on or before the pay date (by the 7th of the following month). Electronic slips are fine. Keep a register for 3 years.
Reading a slip: worked example
| Earnings | ₹ | Deductions | ₹ |
|---|---|---|---|
| Basic | 30,000 | Employee PF | 3,000 |
| HRA | 15,000 | Professional tax | 200 |
| Special allowance | 12,000 | TDS | 0 |
| Gross | 57,000 | Total | 3,200 |
| Net pay | 53,800 |
Employer PF (₹3,000 on the ₹25,000 ceiling) and gratuity provision appear separately as CTC, not on the slip's deductions.
Why slips matter beyond payday
- Loans and credit cards — lenders want 3–6 months of slips plus bank statements.
- Visas — Schengen, UK and US applications commonly ask for 3–6 months of payslips.
- Rental agreements — landlords in metros ask for slips.
- Tax filing — Form 16 summarises the year; slips reconcile it.
- Disputes — slips are evidence of wages for PF, gratuity and F&F claims.
Common problems
- Slip shows basic below 50% of CTC — non-compliant since November 2025; ask HR to restructure.
- PF deducted but not deposited — check your EPFO passbook; mismatches are a serious offence by the employer.
- No slip issued — request in writing; it is a statutory right.
- "Net pay" doesn't match bank credit — usually reimbursements or recoveries handled outside payroll; ask for a reconciliation.
FAQ
Is a salary slip mandatory in India?
Yes. Employers must issue a wage slip to every employee under the Code on Wages, 2019 (in force since November 2025) and earlier state rules.
Can a salary slip be unsigned?
Yes, if it is system-generated and says so. For loans, banks usually accept unsigned digital slips with the employer's name and your ID.
What if my employer doesn't give a salary slip?
Ask HR in writing. If refused, the bank statement plus offer letter serve as proof; the labour department can be approached for the statutory violation.
Is gross salary the same as CTC?
No. CTC includes employer PF, gratuity provision and benefits that are not paid monthly; gross is what you earn before deductions. See CTC to in-hand.