A pay slip or a salary slip is a written record of the payment an employee receives for the services rendered to an organisation. Usually provided every month, an employee pay slip lists out the details related to one’s employment status along with components of the salary. It is important to note that salary slips are a part of both private and government organisations.
Different companies may choose to represent the monthly salary slip differently, however, the prime components remain the same (or similar). These are as follows:
Under this header, all the monies paid to you by the company are reflected. These include (as example):
Dearness Allowance (DA)
House Rent Allowance (HRA)
Leave Travel Allowance (LTA)
Performance Linked Bonus
Other (or Special) Allowance
All the amounts deducted from your salary are also reflected in your salary pay slip, such as:
Employees Provident Fund (EPF)
Voluntary Provident Fund (VPF) and National Pension System (NPS) if you have opted for it
Income Tax as Tax Deductible at Source (TDS)
As the name suggests, a salary slip is only available to salaried employees. The responsibility for providing the salary pay slip to the employee rests with the employer. They can either choose to hand over the monthly salary slip as a hard copy or make the same available on a dedicated salary slip portal. If for some reason you are not provided with a monthly salary pay slip, you can also request a salary certificate that will list out the month-wise employee pay slip details.
We are in a digital era with large multi geographic conglomerates and global organisations. Most employers have chosen to make use of technology to provide e-payslips to their employees. This is an entirely online process wherein all the relevant information is available electronically, thus reducing manual effort for the HR team while also making it easy for employees to view and download online salary slips by logging into the organisation’s salary slip portal. The epayslips are completely valid and can be used as proof wherever needed, in case of seeking a loan or a credit card or any similar financial requirement.
If you study the pay slip format, you will find that there are many components listed on it. These components not only clarify your individual income statement for the month/year, but there are several other areas where they come in handy. Listed below are some of the uses of a salary slip.
Thorough knowledge of the salary slip components such as basic pay, house rent allowance, tax deductions, etc., can help you with your income tax planning so that you can maximise savings. For example, under Section 10 of the Income Tax Act, 1961, if you live in rented accommodation, you can claim a part of the House Rent Allowance (HRA) under tax deduction. Also, under Section 80C of the same Act, you can enjoy tax savings against EPF (Employees’ Provident Fund) contribution, which makes up to 12 percent of your basic salary.
Online systems can also be prone to technical errors. If you see a change (increase/ decrease) in your monthly salary amount, you can quickly refer to your online salary slip and raise the concern to the relevant HR or Finance departments.
Your payslip is legal proof of your employment status. If you are looking to get a loan, open a bank account, apply for a visa, etc., you would need to submit copies of your salary slips for the last three months as proof of your last drawn salary.
In case you wish to apply for a loan, an important criterion that you need to fulfil is your financial eligibility to repay the loan. Your salary slip provides proof of your monthly income and is accepted as an official proof of your employment. It is accepted by almost all the banks and financial institutions as a proof of your financial eligibility and increases your chances of getting the loan approved.
You need the monthly salary payment slip even when you apply for a credit card. This is irrespective of whether you have chosen to opt for an RBL Bank credit card, Axis Bank credit card, SBI credit card, ICICI Credit Card, YES Bank credit card or Citibank Credit Card, the salary slip is mandatory if you are a salaried individual. The document serves as proof of your regularised income and backs your eligibility for the selected credit card.
When you are looking to seek employment in a different organisation, you would need to provide your salary slip to the employer to initiate salary negotiations. This is because your new salary (and the increment thereupon) is decided based on your current salary.
A pay slip is a written record of the monthly salary payment. Only salaried individuals have access to a salary slip, which is provided by the employer. Along with the amount received as a salary, an employee pay slip lists out several critical details related to one’s employment status such as designation, tenure of employment, etc.
At the end of every month, your employer will either hand over the pay slip to you as a hard copy or upload it on the salary slip portal. In case it is available online, you can log in to the portal and download the e-pay slip for the particular month.
To check your salary slip online, you can visit your organisation’s salary slip portal and login with your credentials. Once logged in, you can view and download the salary slip from the side menu or dashboard.
If you are a salaried individual, you would need a salary slip to apply for a new credit card, open a bank account, request for a loan, save on your income taxes, resolve payment discrepancies, switch jobs, etc.
The payslip is a documented breakup of the money paid to you and deducted from you by your employer. It is directly related to your annual cost to the company (CTC) and serves as a means to document all employment related financial information consolidated in one place.
Usually, the HR team ensures that each employee receives their e-pay slip via email at a stipulated time each month. However, it is also possible to download your online salary slip by logging into the digital salary slip portal. The usual steps involved are:
Log in to the online pay slip portal
Find the ‘Employee Pay Details’ or ‘Salary Slip’ option and click on it
Select the month and/or FY for the pay slip to be downloaded
Choose the option to download as excel or pdf
Click on download and save somewhere convenient
The employee pay slip comes in handy in a variety of ways. The uses range from professional ones - such as, salary negotiations in new job, salary market correction in existing job, optimising your earnings and tax savings etc; to financial ones such as applying for lending products like personal loan, home loan, credit card, opening a savings/current account; and many more.
Ideally, it is a good practice to store and save employee pay slips for the recent 3 months. This can come in handy in several instances and having them available offline helps in quick reference. In case you weren’t able to do so and have now changed jobs, and require your salary slip from your previous company, then you will need to send an official request to the HR team or the department that looks after ex-employee welfare. By explaining the requirement and the duration for which salary slips are required, they will process the request and email them to you.