Salary Basics
Salary Slip Format in India: Complete Guide (2025)
A salary slip is a legal document issued every month detailing your earnings, deductions, and net pay. Here is everything you need to know about the standard Indian payslip format.
What is a Salary Slip?
A salary slip (or payslip) is an official document issued by an employer at each pay cycle — typically monthly in India. It itemises all earnings, deductions, and the net amount credited to the employee’s bank account. The Payment of Wages Act, 1936 and state-specific Shops & Establishments Acts require employers to maintain wage records and provide wage slips.
Mandatory Fields on an Indian Payslip
| Section | Fields Required |
|---|---|
| Company Header | Company name, address, logo, pay period (month & year) |
| Employee Info | Name, Employee ID, Designation, Department, PAN, Bank account |
| Working Days | Total days in month, Paid days, LOP (Loss of Pay) days |
| Earnings | Basic, HRA, Conveyance, Medical, Special Allowance (itemised) |
| Deductions | PF, ESI, Professional Tax, TDS (itemised) |
| Summary | Gross earnings, Total deductions, Net Pay in figures & words |
Standard Earning Components
| Component | Typical % | Taxable? |
|---|---|---|
| Basic Salary | 40–50% of CTC | Fully taxable |
| HRA | 40–50% of Basic | Partially exempt (rent payers, old regime) |
| Conveyance Allowance | ₹1,600–3,000/month | Taxable |
| Medical Allowance | Free | Taxable |
| Special Allowance | Balancing component | Fully taxable |
| LTA | ₹10,000–30,000/year | Exempt on actual travel bills |
Standard Deduction Components
| Component | Rate | Notes |
|---|---|---|
| Provident Fund (PF) | 12% of Basic | EPFO account |
| ESI | 0.75% of Gross | Only if Gross ≤ ₹21,000 |
| Professional Tax | Up to ₹2,500/year | State-specific slabs |
| TDS / Income Tax | Per slab | Based on projected annual income |
Loss of Pay (LOP) Proration
When an employee takes unpaid leave, all earnings are prorated:
Earned Amount = Full Month Amount × (Paid Days ÷ Total Calendar Days)
Who Uses Salary Slips?
- Banks for home, auto & personal loan eligibility checks
- Visa officers for employment and income verification
- New employers during background checks and offer negotiation
- IT department for TDS reconciliation via Form 16 and ITR
- Landlords verifying rental affordability
Digital Salary Slips Are ValidPDF payslips — whether generated by payroll software or tools like SlipZap — are legally valid and accepted by banks, visa offices, and government authorities, provided they contain all standard fields.
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⇓ Create Free Payslip →Frequently Asked Questions
Yes. The Payment of Wages Act 1936 and state Shops & Establishments Acts require employers to issue wage slips. The exact format may vary by state but the obligation exists.
Most banks require the last 3 months of payslips for home or personal loans. Some lenders ask for 6 months, especially for larger loan amounts.
Yes. PDF salary slips are legally accepted by banks, visa officers, and most authorities, provided they show all standard components including company name, pay period, and itemised figures.
Request it formally by email. Under the Payment of Wages Act, non-issuance can be reported to the local Labour Commissioner.
Employers, business owners, and HR teams can generate payslips using SlipZap. An employee cannot self-generate an official payslip — it must come from the employer.