Sleet

Salary Slip Format in India: What Every Payslip Must Include

Payroll
5 min read
Quick answer

A proper payslip names the employer and employee, lists each earning separately (basic, HRA, allowances), shows every deduction (PF, ESIC, professional tax, TDS, recoveries) and states net pay and the pay period. A lump-sum figure will not pass a labour inspection or a bank check. Most employers now issue password-protected PDFs.

Salary slips and receipts clipped together on a desk

A salary slip, or payslip, is the record of what an employee earned and what was deducted in a month. Wage laws, including the Code on Wages, expect employers to give one. In practice it is also the first document a labour inspector, a bank or a visa officer asks for.

Key points covered in this guide: What every payslip should show, A simple example, Digital or paper, Mistakes to avoid, Keep records, Make it easy to read

What every payslip should show

SectionDetails
EmployerCompany name and address, and often PAN and TAN
EmployeeName, employee ID, designation, department, PAN, bank account (masked), UAN
Pay periodThe month and the number of days paid
EarningsBasic, HRA, special allowance and other components, each on its own line
DeductionsEmployee PF, ESIC where applicable, professional tax, TDS and loan or advance recoveries
TotalsGross earnings, total deductions and net pay
ExtrasLeave balance, year-to-date totals and the tax regime used

A payslip showing only a lump-sum "salary" will not hold up in an audit or a loan check.

Person checking payroll receipts with a calculator during a payroll audit
Payroll is a monthly discipline: small errors in one component repeat in every payslip.

A simple example

Gross pay of ₹50,000, less PF of ₹3,000, professional tax of ₹200, TDS of ₹2,500 and a loan EMI of ₹3,000, gives net pay of ₹41,300. The slip should let the employee follow every step of that sum.

Digital or paper

Most employers now send password-protected PDFs by email or through a self-service app. They are easier to store for the period the law requires, simple to issue again if lost and free of the formatting errors that come with a spreadsheet template.

Stack of books on a table beside a window
Payroll is a monthly discipline: small errors in one component repeat in every payslip.

Mistakes to avoid

  • ✓Mixing reimbursements into earnings, which makes gross pay look larger than it is
  • ✓Using different labels for the same component from month to month
  • ✓Leaving out employer contributions, which employees often ask about
  • ✓Sending payslips on the pay date only, with no way to download them later

Keep records

Retain payslips and registers for the period your applicable law requires, and check your state's rules. Store them in a structured folder by month.

Make it easy to read

If employees can see why their net pay moved from last month, far fewer will write to HR to ask.

Nihit Dobariya

Written by

HR Manager, Airwix Technologies (Sleet)

Nihit Dobariya is the HR Manager at Airwix Technologies in Ahmedabad, where he runs HR and payroll for the team behind Sleet. He writes about payroll, PF and ESIC, professional tax, the labour codes and everyday HR practice for Indian employers, and checks each rule against the official notification before it is published.

LinkedIn profile →