A salary slip or payslip is a document that contains details about the salary. It consists of the company logo, address, and other necessary information related to your compensation payment. It is made by the employer for employees every month in the form of a hard copy printed or in a digital format.
A payslip is paid only to the salaried employees by the employer. It is given every month to the employees. Smaller companies, at times, do not provide salary slips. In which case you can ask your employees for a salary certificate.
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,
- Practical 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:
Once you understand the value of the budget, you can understand where and how you can save money on 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. The tax applies to these allowances differently.
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 to pay back your loans and obligations in the stipulated time frame. That’s the reason why salary slips are essential. With the help of a salary slip, the bank will decide to give you the loan you are seeking, the credit card that you need, the 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 payslip download can be done in three formats: Excel, Word, and PDF. Excel is the advised one among the three formats as it is easier to calculate on excel.
The Bottom Line:
The employer gives payslips to the employees. It consists of the details about the salary and the company name and address. 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 enables you to 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.