Pay Slips are also called Salary slips and are an essential document for governmental and non-governmental employees of a country. It is essentially a document that comprises of all the components of a salary, along with information regarding the details of employment. Payslips are issued to the employee by the government companies or private employers every month, either through a hard copy or an electronic copy of the same. Ideally, a payslip comprises of the following:
- Company logo
- Company address and details
- Company name
Who gets a payslip?
A payslip or a salary slip, as the name suggests, is issued to the employees of the company that are salaried every month. An employer or an organization is responsible for issuing them for their employees. However, some smaller companies and start-up businesses do not issue payslips to their employees. In such cases, a hard copy of the salary certificate is an essential alternative.
Payslip format for an employee varies from one company to another. A basic template of a payslip comprises of the following:
- Company name, logo and address
- Salary slip of the month and the year
- Employee name, code, department and designation in detail
- Employee Bank account number and other details, depending on the country and the company
- EPF account number or the universal account number
- Effective working days, total working days and the number of leaves taken
- Gross pay and new pay
Apart from these, some of the countries like Pakistan also comprise of the details on pension and payments of the same, as issued by the Pifra.
Basic components of a payslip
- The income and the earnings that comprise of the basic salary, house rent allowances, performance and special allowances, dearness allowances, other essential allowances.
- Deductions that include the EPF, The professional taxes, the tax-deductable, and their source.
The importance of a salary slip
A salary slip for an employer and an employee holds more weightage than just a governmental or a non-governmental document. Some of their importance includes:
- Proof of employment: This serves as legal proof of employment for the company.
- Availing loans and credit cards: Since it contains the monthly salary of a person, it is also a key factor that mainly determines the debt obligations.
- Further employment opportunities: Possessing knowledge about the various components of a salary slip and their deductions can help in the easy assessability of future job opportunities.
- Income tax planning: Many components of a salary slip comprise of the different tax treatments. Possessing a play slip will help in planning all the taxes and tax returns.