A salary slip shows what you earned during a pay period, what was deducted, and what was credited to your bank account. It is also commonly used as proof of income when applying for loans, renting a property, or completing visa documentation.
This guide starts with a sample salary slip format, then explains each component, how salary is taxed, how to check your payslip for errors, and how to create a salary slip in Excel or Word.
All figures in the sample are illustrative. Actual salary components, tax treatment and statutory deductions depend on your employment terms, applicable rules, and tax regime.
Salary Slip Format (Sample Payslip)
A standard salary slip typically includes employer and employee details, the pay period, earnings, deductions, gross wages, and net pay. The exact layout may vary by employer and by the wage-slip format prescribed under applicable rules.
The example below is for a private-sector employee earning a monthly gross salary of ₹75,000, with basic salary of ₹37,500 and no dearness allowance (DA).
Sample salary slip
Example Pvt Ltd — Salary Slip for April 2026
| Employee details | Information |
| Employer name | Example Pvt Ltd |
| Employer address | [City] |
| Employee name / ID | Rakesh Mehta / EMP1042 |
| Designation / Department | Senior Analyst / Finance |
| Pay period | 1–30 April 2026 |
| Days paid / Loss of pay | 30 / 0 |
| UAN | XXXXXXXX1234 |
| PAN | XXXXX1234X |
| Bank account | XXXXXXXX5678 |
| Earnings | Amount (₹) | Deductions | Amount (₹) |
| Basic salary | 37,500 | Employee PF | 4,500 |
| House Rent Allowance (HRA) | 15,000 | Professional tax | 200 |
| Conveyance allowance | 1,600 | TDS | 3,000 |
| Special allowance | 18,900 | ||
| Leave Travel Allowance (LTA) | 2,000 | ||
| Gross salary | 75,000 | Total deductions | 7,700 |
| Net salary | 67,300 |
Note: This is an illustrative layout, not a statutory template. The employee, employer, and figures are fictional. Identifiers are masked for privacy.
Net salary is calculated by subtracting total deductions from gross salary:
₹75,000 − ₹7,700 = ₹67,300
This is the amount expected to be credited to the employee’s bank account, assuming there are no other adjustments.
Read the deductions with these assumptions in mind:
- Employee PF: The example assumes a 12% employee contribution on the full basic salary: ₹37,500 × 12% = ₹4,500. Actual Provident Fund contributions depend on membership and coverage status, the applicable PF wage basis, and the rules governing contributions on higher wages. The ₹25,000 wage ceiling for mandatory EPF coverage took effect on 17 September 2026; it should not be treated as a universal cap on every employee’s contribution.
- Professional tax: The ₹200 amount is hypothetical. Professional tax applies only where levied, and the applicable slabs vary by state.
- TDS: The ₹3,000 amount is a placeholder. Actual TDS depends on projected annual taxable income, the applicable tax regime and the employee’s declarations.
- Employer contributions: The employer’s PF contribution, gratuity provision and insurance costs are not employee deductions. They may form part of the cost to company (CTC), depending on the compensation structure.
For covered establishments, the Code on Wages, 2019 provides for wage slips under Section 50(3). The prescribed form and requirements depend on the applicable central or state rules.
The Ministry of Labour and Employment publishes the relevant legislation and rules on its official website.
What Are the Components of a Salary Slip?
A salary slip generally has two main sections: earnings and deductions. Understanding each component helps you check whether your take-home salary matches your employment terms and payroll calculations.
Earnings
1. Basic salary
Basic salary is the core component of an employee’s pay. It influences certain statutory contributions and benefits, depending on the applicable rules and salary structure.
2. Dearness Allowance (DA)
DA is a cost-of-living adjustment commonly found in government and public-sector compensation structures. Some private-sector employers may also include it.
3. House Rent Allowance (HRA)
House Rent Allowance is an allowance intended to help employees meet rental expenses. Whether it qualifies for a tax exemption depends on the applicable tax regime and eligibility conditions.
4. Conveyance or transport allowance
This allowance may cover commuting or transport-related expenses. Some employers provide it as a separate component, while others incorporate it into another allowance.
5. Special allowance
Special allowance is often used to balance a salary structure after other components have been allocated. Its tax treatment depends on the nature of the payment and applicable rules.
6. Leave Travel Allowance (LTA)
Leave Travel Allowance is intended to cover eligible domestic travel expenses. Any tax exemption depends on the applicable regime, qualifying travel and supporting documentation.
7. Overtime, bonus and incentives
These appear as separate earnings when payable. They may vary from month to month and can affect gross salary and tax calculations.
Deductions
1. Employee Provident Fund (EPF)
Where applicable, the usual employee contribution rate is 12% of the relevant PF wages. These wages may include basic pay, DA and retaining allowance, together with any amounts included under the applicable statutory wage definition.
The rules governing mandatory coverage, the wage ceiling and contributions on higher wages affect the actual deduction. Existing membership and eligibility also matter. Check your payslip and payroll policy rather than assuming every employee’s PF must equal 12% of basic salary.
2. Employee State Insurance (ESI)
The employee contribution rate is generally 0.75% of Employee State Insurance wages for covered employees. The usual wage ceiling is ₹21,000 per month, with a higher ceiling of ₹25,000 for persons with disabilities, subject to applicable rules.
ESI wages have their own legal definition and may differ from gross salary. Eligibility and contributions should be assessed under the applicable ESI provisions.
3. Professional tax
Professional tax is a state-level levy imposed in certain states. Rates, slabs and payment arrangements differ by state, subject to the constitutional annual maximum of ₹2,500.
4. Tax Deducted at Source (TDS)
TDS is income tax withheld by the employer based on the employee’s projected taxable income and applicable tax provisions. The amount may change when declarations, eligible deductions or salary components change.
5. Other deductions
These may include salary advance recovery, loss-of-pay adjustments, voluntary provident fund contributions or other authorised deductions.
The employer’s own PF and ESI contributions are employer costs, not employee deductions. Where applicable, they may be included in CTC.
What the labour codes changed
The four Labour Codes came into force on 21 November 2025. Under the Code on Wages, 2019, the statutory definition of wages includes basic pay, DA and retaining allowance, subject to the exclusions and add-back provisions in the law.
Where excluded components exceed the prescribed 50% threshold of remuneration, the excess is added back to wages for the purposes covered by the provision. This may affect the calculation of certain statutory benefits and contributions.
However, the effect depends on the applicable wage definition and scheme rules. It is not accurate to assume that every allowance is automatically included in PF wages or that every employee’s statutory deductions will increase by the same amount.
Gross Salary vs. Net Salary
Gross salary and net salary describe two different stages of payroll calculation.
- Gross salary: Total earnings before employee deductions.
- Net salary: The amount remaining after applicable deductions. This is commonly called take-home salary.
- CTC: The total annual cost an employer incurs for an employee, including the salary components and employer-paid benefits or contributions included in the compensation package.
Gross salary and net salary are usually visible on the salary slip. CTC is generally detailed in the offer letter or compensation statement.
How to Read a Salary Slip
Review your salary slip every month. A quick check can help identify incorrect deductions, missing payments, or differences between your agreed salary and actual pay.
1. Verify your personal details
Check your name, employee ID, and other identifying information. Confirm that bank details and UAN information, where shown, are correct. Mask sensitive information before sharing a copy.
2. Check the pay period and attendance
Make sure the pay period is correct, and that paid days, leave and loss-of-pay adjustments match your attendance records.
3. Verify earnings
Compare basic salary, HRA, special allowance and other components with your appointment letter or latest salary revision. Look for missing or unexpected entries such as incentives, arrears, or overtime.
4. Review PF
Check the PF deduction against the applicable PF wage basis and contribution rate. Do not assume that every employer calculates PF on the same salary components or uses the same contribution basis.
5. Check professional tax and ESI
Confirm that professional tax is applicable in your state and that ESI deductions are consistent with the relevant coverage and wage rules.
6. Review TDS
Check whether the monthly tax deduction is consistent with your projected annual income, chosen tax regime, and declarations submitted to payroll.
7. Recalculate net salary
Subtract total deductions from gross salary. The result should match the net salary shown on the slip and, subject to any other adjustments, the amount credited to your bank account.
If a figure does not match, contact payroll or HR in writing and retain the relevant salary slip, attendance records, and supporting documents.
How Are Salary Components Taxed?
Salary taxation depends on the applicable tax year, the employee’s circumstances, and the tax regime selected.
The Income-tax Act, 2025 and Income-tax Rules, 2026 apply from 1 April 2026 for tax year 2026–27 onwards. Earlier tax years continue to be governed by the framework applicable to those years.
The new tax regime is the default regime for eligible taxpayers. The old regime continues to be available where the law permits a taxpayer to opt for it. The better choice depends on the employee’s income, eligible exemptions, deductions, and overall tax liability.
Standard deduction
For eligible salaried employees, the standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime for tax year 2026–27. It is considered in the computation of taxable salary under the applicable provisions.
Professional tax paid may also be deductible under the old regime, subject to the applicable rules. Tax calculations should be checked against the official provisions for the relevant tax year.
Tax treatment of common salary components
| Component | New regime | Old regime |
| Basic salary, DA and ordinary special allowance | Generally taxable | Generally taxable |
| HRA | Taxable | May qualify for exemption, subject to conditions |
| LTA | Generally taxable | May qualify for exemption for eligible travel |
| Children’s education and hostel allowances | Treatment depends on applicable provisions | Exemptions may be available within prescribed limits |
| Meal benefits or vouchers | Depends on the applicable rules and conditions | Depends on the applicable rules and conditions |
| Telephone or internet reimbursement | Depends on the nature and purpose of the expense | Depends on the nature and purpose of the expense |
| Employer contribution to NPS | Subject to applicable deduction and contribution provisions | Subject to applicable deduction and contribution provisions |
These are general descriptions, not a substitute for checking the applicable rules. Eligibility can depend on the nature of the payment, documentation, employer arrangements and the tax regime.
For current limits and conditions, consult the Income Tax Department’s official portal.
How HRA exemption is calculated under the old regime
For an eligible salaried employee under the old tax regime, HRA exemption is generally the lowest of the following amounts:
- Actual HRA received.
- Rent paid minus 10% of eligible basic salary and DA.
- 50% of eligible basic salary and DA for specified metro cities, or 40% elsewhere.
The calculation is subject to the applicable law and eligibility conditions. Under the new regime, HRA exemption is not available.
Illustrative example
Assume the employee in the sample salary slip receives a basic salary of ₹37,500 and HRA of ₹15,000 per month and pays rent of ₹12,000 per month in a non-metro location.
| Calculation | Amount (₹) |
| Actual HRA received | 15,000 |
| Rent minus 10% of basic salary (₹12,000 − ₹3,750) | 8,250 |
| 40% of basic salary | 15,000 |
| Illustrative exempt HRA | 8,250 |
| Illustrative taxable HRA | 6,750 |
The calculation assumes that the employee meets the applicable conditions and that the figures represent eligible amounts. Under the new regime, the full HRA amount would generally be taxable.
TDS on salary
Employers calculate salary TDS using the employee’s projected taxable income and the applicable tax provisions. Monthly deductions may change when salary, declarations or other relevant details change.
For tax year 2026–27 onwards, refer to the Income-tax Act, 2025 and the corresponding rules and forms. For earlier tax years, the earlier framework may still apply. If your employer deducts more tax than your final liability, the excess may be recoverable through the applicable tax-return process.
CTC vs. Gross Salary vs. Take-Home Salary
CTC is the total annual cost of employing someone. Gross salary is the employee’s earnings before deductions, while take-home salary is what remains after deductions.
| Term | What it includes | Where to find it |
| CTC | Gross salary plus applicable employer contributions, benefits, insurance and variable pay | Offer letter or compensation statement |
| Gross salary | Basic salary, HRA and other earnings before employee deductions | Salary slip |
| Take-home salary | Gross salary minus applicable employee deductions | Salary slip |
Worked example: CTC to take-home salary
The following example uses the same salary figures as the sample slip. It assumes that the stated employer contributions and benefits are included in CTC.
Annual CTC calculation
| Component | Annual amount (₹) |
| Gross salary (₹75,000 × 12) | 9,00,000 |
| Employer PF contribution (illustrative) | 54,000 |
| Gratuity provision (illustrative) | 21,645 |
| Group health insurance premium | 12,000 |
| Total CTC | 9,87,645 |
Annual take-home calculation
| Component | Annual amount (₹) |
| Gross salary | 9,00,000 |
| Less: employee PF, professional tax and TDS | 92,400 |
| Net take-home salary | 8,07,600 |
In this example, take-home pay is approximately 82% of CTC. The actual ratio varies according to the compensation structure, statutory contributions, tax liability, insurance, and variable pay.
Employer contributions and benefits may increase CTC, but they are not part of the gross salary available for monthly disbursement.
Salary Slip Formats for Different Employment Types
The general purpose of a salary slip remains the same across employment types, but the fields and deductions may differ.
- Private-sector employees: Usually receive a monthly PDF or access their payslip through an employee portal. Component names and layouts vary by employer.
- Government employees: May have pay-matrix components such as basic pay, DA, HRA and transport allowance, with deductions determined by the applicable pension and social security arrangements.
- Contract or agency of employees: The agency or contractor that employs the worker is generally responsible for issuing the relevant wage documentation.
- Freelancers and consultants: Ordinarily do not receive employee salary slips. Invoices, contracts, bank statements, and applicable TDS certificates may be used to document income.
Salary Slip vs. Other Pay Documents
Salary slips, tax certificates and employment letters serve different purposes.
| Document | Purpose | Issued by |
| Salary slip | Shows earnings, deductions and net pay for a pay period | Employer |
| Annual salary TDS certificate | Records salary income and tax deducted during the relevant period | Employer |
| Tax credit statement | Shows tax credits and related information available in the tax system | Income Tax Department |
| Appointment or offer letter | Records employment terms, including agreed compensation | Employer |
The names and numbers of tax forms depend on the applicable tax year. Use the Income Tax Department’s official portal to identify the correct form for the relevant period.
Lenders commonly ask for recent salary slips and bank statements when verifying income. Some may also ask for annual tax documents or other supporting records. The number of salary slips required varies by lender and loan type, so confirm the documentation requirements directly with the lender.
How to Create a Salary Slip in Excel or Word
Small employers can create a basic salary slip using Excel or Word. Excel is more suitable when totals need to update automatically, while Word may be useful for a fixed layout.
If you use a template, make sure it matches your organization’s payroll process and the wage-slip requirements applicable to your establishment.
Step 1: Set up the structure
Include the following fields where applicable:
- Employer name and address.
- Employee name, ID and designation.
- Pay period and attendance details.
- Earnings, such as basic salary, HRA and other allowances.
- Deductions, such as PF, ESI, professional tax, and TDS.
- Gross wages, total deductions, and net wages.
- Any additional fields required by the applicable wage-slip rules.
Use masked identifiers when sharing a sample or demonstration payslip.
Step 2: Add the formulas
The following example illustrates a simple spreadsheet layout. It is not a substitute for a complete payroll calculation.
Assume:
- Days in the pay period are in B3.
- Loss-of-pay days are in B4.
- Monthly earning amounts are in column C.
- Paid earnings are in B5:B9.
- The calculated PF wage base is in B11.
- The applicable ESI wage base is in B12.
- Deduction amounts are in column E.
| Cell | Purpose | Example formula |
| B5 | Earnings, where the component is prorated for loss of pay | =ROUND(C5*(B3-B4)/B3,0) |
| B10 | Gross salary | =SUM(B5:B9) |
| B11 | PF wages | Calculate from the applicable PF wage components |
| B12 | ESI wages | Calculate from the applicable ESI wage definition |
| E5 | Employee PF | =ROUND(MIN(B11,Rates!B2)*Rates!B3,0) |
| E6 | Employee ESI, subject to eligibility | =IF(B12<=Rates!B4,ROUNDUP(B12*Rates!B5,0),0) |
| E7 | Professional tax | Enter the applicable state amount |
| E8 | TDS | Enter the amount from the payroll tax computation |
| E10 | Total deductions | =SUM(E5:E8) |
| E12 | Net salary | =B10-E10 |
Create a separate Rates tab to store the relevant rates and thresholds. For example:
- Rates!B2: the applicable PF wage ceiling or contribution basis, as appropriate.
- Rates!B3: the applicable employee PF contribution rate.
- Rates!B4: the applicable ESI wage ceiling.
- Rates!B5: the employee ESI contribution rate.
The PF and ESI wage bases must be calculated separately using the relevant legal definitions. Do not automatically assume that either is equal to basic salary or gross salary.
Important limitations of these formulas:
- Loss of pay: The pro-rata formula assumes the earning component is reduced in proportion to unpaid days. Use it only where the employer’s salary policy applies that method.
- PF: The example formula is a simplified illustration. Actual PF calculations depend on eligibility, membership, the applicable wage basis and contribution rules. Do not treat the ceiling as a universal cap on contributions.
- ESI: Eligibility and contributions may depend on the contribution period and applicable rules. A simple spreadsheet condition may not cover every case.
- TDS: The amount should come from a proper tax computation, not a fixed percentage of gross salary.
Step 3: Use the template each month
Save a master spreadsheet and use a controlled copy for each employee and pay period. Update the relevant salary, attendance and deduction inputs, verify the totals, and export the approved payslip to PDF.
A spreadsheet may work for a small team, but payroll software can help reduce manual errors as headcount, locations and compensation structures become more complex.
What to Do If Your Salary Slip Has an Error or Isn’t Issued
If you find a discrepancy, raise it with payroll or HR as soon as possible.
1. Compare the slip with your records. Check your appointment or revision letter, attendance, approved leave and tax declarations.
2. Raise the issue in writing. Identify the exact line item and amount, and attach relevant supporting documents.
3. Request a correction. If the error is confirmed, ask payroll to issue a corrected slip or record the adjustment through the appropriate payroll process.
4. Follow the internal escalation process. If the issue remains unresolved, use your organization’s HR grievance procedure.
If you are not receiving wage slips, ask HR or payroll for them in writing. Section 50(3) of the Code on Wages, 2019 provides for wage slips in the prescribed form and manner. The requirements applicable to your establishment depend on the relevant central or state rules.
If the matter remains unresolved, you may approach the labour department with jurisdiction over your workplace. For a specific legal dispute, consult a qualified labour-law professional.
Always refer to your employer’s actual payroll policy for details about allowances, proof deadlines and reimbursements. These can vary by organization.
FAQs
What is a salary slip format?
A salary slip format is the layout used to record an employee’s earnings, deductions and net pay for a pay period. It generally includes employer and employee details, the wage period, earnings, deductions, gross wages and net wages.
Is a salary slip mandatory in India?
Section 50(3) of the Code on Wages, 2019 provides for employers to issue wage slips in the prescribed form and manner. The specific requirements depend on the rules applicable to the establishment.
How do I create a salary slip format in Excel?
Create labelled rows for earnings and deductions, calculate gross salary using a SUM formula, total the applicable deductions, and subtract total deductions from gross salary to calculate net pay. Verify the payroll rules before using the spreadsheet for actual employee payments.
How is PF calculated on a salary slip?
The usual employee PF contribution rate is 12% of applicable PF wages where the contribution provisions apply. The actual calculation depends on the employee’s membership and coverage status, applicable wage basis and contribution rules.
Is HRA exempt under the new tax regime?
HRA exemption is not available under the new tax regime. Eligible employees under the old regime may qualify for an exemption subject to the applicable conditions and calculation limits.
How many months of salary slips are needed for a loan?
Lenders commonly request recent salary slips and bank statements to verify income. The number of months and additional documents required vary by lender and loan type.
Do freelancers get a salary slip?
Freelancers ordinarily do not receive employee salary slips because they are not employees of their clients. They generally use invoices, contracts, bank statements, and applicable TDS certificates as income documentation.
Need help building a stronger hiring strategy? Explore how Taggd helps enterprises hire the right talent through AI-powered recruitment solutions. Talk to our recruitment experts.
