✓ Fast Processing ✓ Great Discounts & Offers ✓ Easy EMI Facility | Apply for Credit Card now!

Salary Pay Slip Format Guide

salary slip is a document that an employee receives at the end of every month from the employer. It functions as proof of employment and income at a particular organisation. You can use your salary slip to apply for a credit card, get a loan, apply for a visa, etc. To understand what type of information you can find on your pay slip, take a look at the common employee salary pay slip format.

What is the Salary Slip Format?

The basic salary slip/ sheet format usually comprises the below-mentioned items:

  1. Name of the company along with the address

  2. Month and year when the salary slip was generated

  3. Name of the employee, employee code, designation, department, and date of joining

  4. PAN, EPF account number, UAN (Universal Account Number), bank name and bank account number

  5. Total number of workdays in the month, number of effective workdays, and number of leaves

  6. List of earnings

  7. List of deductions

  8. Gross pay and net pay

Salary Slip Sample Format

Take a look at the pay slip salary sample below to understand the different items usually mentioned on it.

This is an illustrative example. As the salary slip format varies from one organisation to another, certain components may or may not be included in your salary slip. You can easily download salary slip format in word or PDF from your company’s HR portal and compare it with the components mentioned here.

What are the Components of a Salary Slip?

The monthly salary/ pay slip format consists of two primary components- earnings and deductions. However, do note that the list of earnings as well as deductions may vary from company to company as well as your current designation.

1. Earnings

  • Basic Salary- This is the most important component of the employee salary slip which is usually 30% to 40% of the total salary. Based on this, the other components of the salary are calculated.

  • Dearness Allowance or DA- It is a percentage share of the basic pay offered to offset the impact of inflation. The salary slip format for a Pvt Ltd company would not list this item as it is available only to government employees.

  • House Rent Allowance or HRA- The percentage share for HRA varies with the location of the rented accommodation and is usually 40% to 50 % of the basic pay.

  • Special Allowance/ Performance Bonus- This is a performance-based incentive and hence varies from employee to employee. It is provided to boost employee morale and encourage them to do better.

  • Other Allowances- Any other allowances, which the employer may not want to list out can be clubbed together under this category. This may include telephone allowance, internet allowance, etc.

2. Deductions

  • Employees’ Provident Fund or EPF- EPF is a compulsory deduction from your salary, which makes up at least 12% of your basic salary.

  • Professional Tax- The professional tax component is only applicable in some states. It is calculated based on the tax slab you fall under and your basic salary. Usually, it varies between ₹200 and ₹2,500 every month.

  • Tax Deductible at Source or TDS- This is the amount deducted by your employer as tax on behalf of the Income Tax department. You can save on this type of deduction if you choose to invest in tax-saving schemes. You would need to declare the details at the start of the financial year as well as attach the relevant documents as proof while submitting your claims.

Another deduction that you are likely to come across if you download your salary sheet is the standard deduction. Let us take a look at what it means and what impact it has on your overall income.

What is Standard Deduction on Salary Slip?

In the Union Budget 2018-19, the component of ‘Standard Deduction’ was reintroduced after a gap of 13 years (was abolished under the Finance Act, 2005) to bring some relief to the salaried taxpayers. It replaced the transport allowance and medical allowance components of the salary slip. Under the provision, a part of the gross salary is subtracted as the standard deduction, which can then be claimed by all salaried individuals. There are no category limitations and you do not need to provide investment proof to support your claim. While the initial standard deduction amount (in 2018) was ₹40,000, it was raised to ₹50,000 in the Budget 2019-20, thereby reducing the tax outgo for salaried and pensioners.

Frequently Asked Questions

  • ✔️What are the components of a salary slip?

    The components that make up the salary slip are a list of earnings and deductions. The earnings include basic salary, Dearness Allowance (DA), House Rent Allowance (HRA), special allowance, and other allowances. Deductions on the other hand include- EPF contribution, Tax Deduction at Source, and professional tax.

  • ✔️What is the sample format for a salary slip?

    A normal salary slip format has the following components- the name of the company along with the address, month and year when the salary slip was generated, name of the employee, employee code, designation, department, and date of joining, PAN, EPF account number, UAN (Universal Account Number), bank name and bank account number. It will also mention the total number of workdays in the month, the number of effective workdays, and the number of leaves. There will also be a list of earnings and deductions, along with details about the gross pay and net pay.

  • ✔️How do I download a salary pay slip?

    You can download your salary pay slip from your organisation’s salary slip portal by logging into your account and clicking on the ‘salary slip’ tab.