Salary Slip Format: What a Payslip Should Show
A salary slip is the employee's monthly record of what they earned, what was deducted and why. This guide lists what a good payslip contains, explains every component, shows a sample slip with totals that add up, and covers the mistakes that make payslips unreliable.
Key points
- A payslip needs employer and employee details, the pay period, paid days, earnings, deductions and net pay in figures and words.
- Show UAN and ESIC numbers so the employee can match PF and ESI credits.
- Employer PF and ESI are not deductions from the employee; show them as a separate note, if at all.
- The Code on Wages, 2019 requires employers to issue wage slips; the form and manner come from rules still being notified.
- Employees rely on payslips for loans, visas, tax returns and job changes, so totals must reconcile to the rupee.
What a salary slip should contain
There is no single mandatory design for private employers, but a complete payslip has six blocks.
- Employer details: legal name, address, and ideally the PF establishment code and ESIC employer code.
- Employee details: name, employee ID, designation, department, date of joining, PAN, UAN, ESIC IP number, bank name and masked account number.
- Pay period and attendance: month and year, days in the period, paid days, LOP days, and leave taken.
- Earnings: each component with the amount paid this month.
- Deductions: each statutory and other deduction.
- Net pay: in figures and words, with payment mode and date.
Many employers also add a note of employer contributions and year-to-date totals for tax.
Every component explained
Earnings
| Component | What it is | Notes |
|---|---|---|
| Basic salary | Fixed core pay | Base for PF, gratuity and often leave encashment |
| Dearness allowance (DA) | Cost-of-living allowance | Counts with basic for PF; common in government-linked pay |
| House rent allowance (HRA) | Allowance towards rent | Partly exempt under the old tax regime if rent is paid |
| Conveyance / special allowance | Other fixed allowances | Usually fully taxable |
| Overtime | Pay for hours beyond the shift or legal limit | Show hours and amount |
| Bonus / incentive | Performance or statutory bonus, sales incentive | Label the month it relates to |
| Arrears | Shortfall from earlier months | Name the month and reason |
Deductions
| Component | What it is | Notes |
|---|---|---|
| Provident fund (PF) | Employee's 12% of basic + DA | Often on wages capped at ₹15,000 |
| ESI | Employee's 0.75% of gross wages | Only when gross wages are ₹21,000 or less |
| Professional tax | State tax on employment | Maximum ₹2,500 a year; slabs vary by state |
| TDS / income tax | Tax deducted at source on salary | Based on the employee's chosen regime |
| Advance / loan recovery | EMI or one-time recovery | Show balance outstanding if possible |
| Other deductions | Canteen, fines, transport | Must be permitted by law and policy |
Loss of pay is shown in one of two ways: as reduced earnings (each component paid for paid days) or as a separate "LOP deduction" line against the full monthly rate. Both work if the paid-days figure is printed. For how each figure is calculated, see how to calculate salary.
Sample payslip with correct totals
The sample below uses a fixed 30-day basis. Monthly rates: basic ₹15,000, HRA ₹6,000, conveyance ₹1,500, special allowance ₹7,500 (₹30,000 in total). The employee had 1 LOP day in September, so each component is paid for 29 of 30 days, plus a ₹1,500 incentive.
| Sample Enterprises Pvt. Ltd. · Payslip for September 2026 (sample data) | |||
|---|---|---|---|
| Employee | Ravi Kumar (EMP-0042) | Designation | Accounts Executive |
| Department | Finance | Date of joining | 01-06-2023 |
| PAN | XXXXX1234X | UAN | XXXXXXXX5678 |
| ESIC IP number | Not applicable | Bank account | XXXXXX4321 |
| Days in month | 30 | Paid days / LOP days | 29 / 1 |
| Earnings | Amount (₹) | Deductions | Amount (₹) |
|---|---|---|---|
| Basic salary | 14,500.00 | Provident fund (12%) | 1,740.00 |
| HRA | 5,800.00 | ESI | 0.00 |
| Conveyance allowance | 1,450.00 | Professional tax | 200.00 |
| Special allowance | 7,250.00 | TDS | 0.00 |
| Incentive | 1,500.00 | Salary advance recovery | 2,000.00 |
| Gross earnings | 30,500.00 | Total deductions | 3,940.00 |
| Net pay (₹30,500.00 − ₹3,940.00) | 26,560.00 | ||
Net pay in words: Rupees Twenty-Six Thousand Five Hundred Sixty Only.
Employer contributions (not deducted from salary): PF ₹1,740 (EPS ₹1,208, EPF ₹532).
Check the arithmetic the way an auditor or bank would: ₹14,500 + ₹5,800 + ₹1,450 + ₹7,250 + ₹1,500 = ₹30,500. ₹1,740 + ₹200 + ₹2,000 = ₹3,940. PF is 12% of earned basic ₹14,500. ESI is nil because gross exceeds ₹21,000. TDS is nil because annual taxable income under the new regime is below the rebate limit.
Want to produce a slip like this yourself? The free payslip generator lets you enter earnings and deductions and print or save the slip as PDF, without anything leaving your browser.
Is a wage slip mandatory?
Under the older laws, wage slips were required for employees covered by the Minimum Wages Act rules and several state shops and establishments Acts. The Code on Wages, 2019, which replaced the Minimum Wages Act and the Payment of Wages Act and was brought into force from 21 November 2025, requires every employer to issue wage slips to employees in the form and manner prescribed by the rules.
The central and state rules are still being notified, so the exact format, whether an electronic slip is enough and the timing may differ by state. Until your state's rules are final, a payslip with the contents above, issued every month in print or electronically, is the safe practice. Keep payroll registers and slips for the period your applicable rules require.
Mask sensitive numbers. Show only the last four digits of the bank account and PAN on a slip that employees may share with banks, landlords or embassies.
How employees use payslips
- Loans and credit cards. Banks and NBFCs typically ask for the latest three to six months of payslips to assess income and existing deductions.
- Visa applications. Many consulates ask for recent payslips alongside a bank statement and employment letter as proof of stable employment.
- Income tax return. Payslips help reconcile salary with the annual TDS certificate (Form 16 under the Income-tax Act, 1961; the Income-tax Act, 2025 renumbers forms) and with the tax credit statement. Under the old regime, HRA received and professional tax paid come from payslips.
- Job change. A new employer usually asks for recent payslips to verify current gross, net and CTC.
- PF and ESI checks. Matching PF on the slip with the EPFO passbook confirms the employer deposited contributions.
- Rental agreements. Landlords and housing societies sometimes ask for income proof.
Common payslip mistakes
- Totals that do not add up. Rounding each line differently leaves gross or net a rupee or two off the listed components.
- Net pay in words that differs from figures. Generate the words from the final number, not by hand.
- Paid days missing. Without paid days the employee cannot tell why pay dropped.
- Employer PF shown as a deduction. This makes net pay look lower than gross minus the employee's own deductions.
- PF on the wrong base. 12% of gross instead of basic + DA, or of the monthly rate instead of earned basic.
- Unexplained arrears or recoveries. Label the month and reason for every one-off line.
- Missing UAN or ESIC number. Employees need these to track their statutory benefits.
- Editing slips after payment. A revised slip for a paid month without a record of why undermines trust. Corrections belong in the next month as arrears or recovery.
Payslips straight from the payroll run
Typing slips separately from the salary sheet is where most of these errors creep in. In Swastik Payroll's salary management, the PDF salary slip is produced from the same monthly salary record that holds paid days, component breakdown, overtime, bonus, advance and loan deductions, PF, ESI and TDS. Approved months can be locked so slips for paid months do not change, and shortfalls found in reconciliation are carried to the next month as arrears. Employees can sign in to view and print their own salary slips.
To check the PF line on a slip, use the free PF calculator.
Frequently asked questions
Can an employer refuse to give a salary slip?
The Code on Wages requires employers to issue wage slips, with the form and manner set by the rules. Earlier state laws and minimum wage rules also required them for many employees. If your employer does not issue one, ask HR in writing first, and check your state's labour department for the rules that apply.
Is a payslip without a signature or stamp valid?
Computer-generated payslips often carry a note that no signature is required, and most banks accept them. Some lenders or consulates may still ask for a signed and stamped copy or an HR letter, so check their requirements.
Should the payslip show CTC?
It is optional. Some employers add an annual CTC line or employer contributions for transparency. What matters is that monthly earnings, deductions and net pay are complete and add up.
What if the PF on my payslip does not match my EPFO passbook?
Credits can take a few weeks to appear after the employer files the monthly return, which is due by the 15th of the following month. If the gap persists, share the payslip and passbook with HR and ask for the challan details.
This guide is general information for employers and employees in India, not legal or tax advice. Statutory rates, limits and forms change; confirm the current position with EPFO, ESIC, the Income Tax Department or your CA before acting on it.