Check the new pay slip format for every month salary details appeared towards incomes, deductions and take home pay or net pay, and know how much important it is to an employee, download e payslip in online with all pay details containing bank account and PF accounts along with PAN number…
Pay Slip is also called as the Salary slip which is documentation provided to an employee from an employer or an organization which has the breakdown of the monthly salary deposited to an employee, there are different elements and particulars that can be found on the salary slip which will explain how much money is to be given to a certain employee.
The reason Pay Slip is used is to make sure that every employee is received with the basic payment which is called as Basic pay every month, and on top of that, the extra benefit that an employee receives are also registered and labelled on the same salary slip for clear explanation, and you might wonder that the pay slip is only important to an employee which is correct but at the same time it is important to the employer as well.
The Pay slip or the Salary slip works as the authentic proof that the employee has worked for the period of the time mentioned in the slip and the employer has provided them with the salary up to date as well.
What is Pay Slip to an Employee?
In simple terms a Pay slip or the Salary slip to an employee is the amount or money deposited by the employer to you for the period mentioned in the slip, and It has all the particulars and elements listed out explaining how the salary has been revised and sent to you, but the most important thing that an employee should know is that when they apply for a new job at another company or organization, then they have to give the past 3 months or 6 months salary slip to the new organization for verification purpose that you have worked for your past company.
Every Organization or Employer will use an online payroll management system which is called as Employee Management System (EMS), someone using SAP management ERP and someone with other software, where in the system, you will be allotted a particular Employee ID for a certain company you work for and password so as to log into your Management system to download the salary slips every month.
Salary slip can be used for different reasons such as
- Income Tax Filing : Every year all salaried employees and income source individuals have to file Income tax returns and while filling the form you have attach salary slips as proof along with other necessary documents.
- Loans for Home, Car and more : If you want to apply for loans on different reasons like Home, car or construction then you will have to provide proof of current employment which can only be done via giving salary slips.
- Proof of Employment : As I already told you, no one will believe you that you have worked for particular organization or company without salary slips from them. It is advised that salary slips are downloaded every month for future reference.
What are the Elements and Particulars mentioned in the Pay Slip?
Pay Slip is basically a clear documentation of your monthly payment from your employer which is clearly divided into different sections that explain how the salary is calculated.
Income part of the Pay slip will contain
- Basic Salary : The basic salary is the minimum wage you are offered without any benefits added for the month or year, and It is to be noted that this will only comprise the 40% to 50% of the total salary.
- HRA : Home Rent Allowance is one of the biggest benefits most of the IT and government sector employees receive, In the Pay slip you will find a line with HRA and the amount that has been allot as the HRA benefit to you for the particular month.
- LTA : LTA amount deposited to your salary account will be mentioned on the pay slip under LTA.
- Bonus : Government of India has made amendments clearly that the employer has to give their employee bonuses and the given bonuses should be a part of the legal paperwork, So, all the bonuses you receive during festival time or the year end are added to the Pay slip.
Deductions on the Pay Slip
Deductions are very important and crucial part of the pay slip which will contain the amount that is deducted from your total salary for reasons such as PF, Professional Tax and TDS as well.
- Provident Fund : Employees Provident Fund deducts 12% of your basic salary every month towards the Provident fund act and this amount is saved in your own account, which can be withdrawn after retirement or during work at different cases.
- Professional Tax: Every company or Organization will deduct a certain amount of tax towards tax payment to India.
- Tax Deductible at Source (TDS) : TDS is a form of tax that is deducts from the employee by employer towards the PF act.
What is e Pay Slip, How does it work actually work?
As the world is moving towards online revolution, all the companies, brands and organizations that manage a lot of employees have moved towards online Payroll management systems, In these systems every employee will have an employee ID and password through which they will be able to access the Pay slips from online directly, Such a process of accessing pay slips from online is called as e Payslip or Electronic Pay slip management system, and even the government sector organization has started using the facility of e-Pay Slips now.
Normally, the Pay slip you receive physically will have stamp and signature but the e-Pay slip will not have any of the signatures or stamp as well, but at the end of the Pay slip there will be a note stating that this will work as original pay slip.
What is Pay Slip to an Employer?
There are various reasons why Pay Slips are important to an organization or the employer you are working for
Employee Assessment : Every year organizations and companies’ asses their employee and they also provide them with revised salary which is called as increment, and In order to decide the increment, they look at the previous salary slips and basing on them new increment is decide and mentioned in the latest salary slips.
Convenient Employee Management : Some organizations have 100 employees while some have 1000 or more employees and the process of managing the salaries become difficult without online Payroll management systems and pay slips.