- A salary slip shows what was earned, what was deducted and what was paid, for one pay period.
- Staff need it for loans, visas, rent agreements and income tax returns, and many state rules require employers to issue one.
- Show paid days and loss of pay, so the salary can be checked against attendance.
Why salary slips matter
A salary slip (payslip or wage slip) is the record of one month’s pay. Employees use it as proof of income for bank loans, credit cards, rental agreements and visas, and to check their PF and tax deductions. Under the Minimum Wages rules and many states’ Shops and Establishments rules, employers are expected to give wage slips, and a clear slip also prevents arguments about pay.
What to include
1. Employer details
- Business name and address, and logo if you have one.
- Registration numbers that apply: PF establishment code, ESI code, TAN.
2. Employee details
- Name, employee code, designation and department.
- Date of joining.
- UAN (PF) and ESI number where applicable, and PAN if TDS is deducted.
- Bank account (last digits) or payment mode.
3. Pay period and days
- The month, for example October 2026.
- Days in the month, paid days and loss-of-pay days.
4. Earnings
- Basic salary and dearness allowance (DA), if any.
- House rent allowance (HRA).
- Other allowances, such as conveyance or special allowance.
- Overtime, incentives, commission and bonus, each on its own line.
5. Deductions
- Employee PF and ESI contributions.
- Professional Tax.
- Income tax deducted at source (TDS).
- Recoveries such as salary advances or loan instalments, with the instalment number.
6. Net pay
- Total earnings, total deductions and net pay, in figures and in words.
- A note such as “This is a computer-generated payslip” if it isn’t signed.
A worked example
An employee on ₹30,000 a month in Maharashtra, with 29 paid days in October (31 days), a ₹1,500 incentive and a salary advance being recovered in five instalments:
| Earnings | ₹ | Deductions | ₹ |
|---|---|---|---|
| Basic | 14,032.26 | PF (12% of basic) | 1,684.00 |
| HRA | 5,612.90 | Professional Tax | 200.00 |
| Special allowance | 8,419.36 | Advance (2 of 5) | 2,000.00 |
| Incentive | 1,500.00 | ESI | Not applicable |
| Gross earnings | 29,564.52 | Total deductions | 3,884.00 |
Net pay: ₹25,680.52 (Rupees twenty-five thousand six hundred eighty and fifty-two paise).
The earned salary is ₹30,000 ÷ 31 × 29 = ₹28,064.52, split into basic (50%), HRA (40% of basic) and special allowance (the rest). ESI does not apply because the monthly salary is above ₹21,000. See our guides on salary from attendance, PF and ESI and Professional Tax for how each figure is worked out.
Common mistakes
- Leaving out paid days and LOP, so the salary can’t be checked.
- Combining bonuses and deductions into one line instead of showing each.
- Missing employer registration numbers, which banks and tax authorities may look for.
- Issuing slips weeks late. Give them on or soon after payday.
Payslips that explain every line
StaffPrime creates a payslip for every person from their attendance, pay structure and the month’s payments, with your registration numbers printed on it.
Published 30 October 2026 by the StaffPrime team. General information only, not legal or tax advice.