A salary slip or payslip is a document that contains details about the salary. It consists of the company logo, address and other necessary details related to the payment of your salary. It is made by the employer for employees every month in the form of a hard copy printed or in a digital form.
A payslip is paid only to the salaried employees by the employer. Smaller companies, at times, do not provide salary slips. In which case you can ask your employees for a salary certificate. It is given every month to the employees.
Salary Slip Format
The salary slip format is as follows:
- Employee Name, Employee Code,
- Department Employee PAN/Aadhaar,
- Bank Account Number EPF Account Number,
- UAN (Universal Account Number) Total Workdays,
- Effective Workdays, Number of Leaves.
- Salary slip or payslip also includes a list of earnings, deductions, Gross pay and net pay.
Importance of Salary Slip:
Planning for Income Tax:
With the help of a salary slip, you can know your travel allowance, Home Rent Allowance or HRA, medical allowance, transport allowance and so on. Tax is applicable to these allowances differently. Once you understand the value of the allowance you can understand where and how you can save money on income tax.
With the help of a salary slip, you can show it to anyone that you are employed. You have legit proof of that. When applying for a VISA you may need your salary slip to be shown. If you want to apply for universities, you may need to provide them with your salary slips.
Getting Loans and Credit Cards:
Your salary slip is proof that you can pay your debts on time. It assures the bank or any other financial institute that you have the capacity to pay back your loans and debts in the stipulated time frame. That’s the reason why salary slips are important. With the help of a salary slip, the bank will decide to give you the loan that you are seeking or credit card that you need or mortgage you are looking for or any other type of borrowing.
Looking for a new job:
If you wish to change your job you will have to provide a salary slip to the company or organization, you are applying to. You need to show your salary slip and, on that basis,, they will decide your new salary.
The pay slip download can be done in three formats: Excel, Word and PDF. Among the three formats, Excel is the advised one as it is easier to calculate on excel.
The Bottom Line:
Payslip is given by the employer to the employees. It consists of the details about the salary and the company name and address on it. It also consists of other information about the employees. Salary slip helps in various ways. It’s proof that you are working in the company. It helps you get the loan that you are looking for. It helps you with the income tax and when you want to apply for a new job.