While making a salary slip, not only is it important to capture all the payments made to the employee, but it is equally important to record the deductions.

Perquisites can include rent-free accommodation or reimbursement of rent paid, furniture allowance, payment of utilities, and even stock options. The amount may be a percentage of the overall CTC or a fixed amount paid out each quarter or at the end of the financial year.

While a fair-market salary and allowances are all fine, employees also expect performance-linked incentives, bonuses, or perks. It's a competitive recruitment landscape today. Some of them are tax-exempted and can contribute to increasing your net take-home salary. Various AllowancesĮmployers offer various allowances to attract talented workers. Not only is it the largest salary component, but it also directly/indirectly has a bearing on other aspects such as PF, HRA, etc. In most companies, basic salary makes up almost half (40 - 50%) of the salary paid to the employees. This is an overall figure that comprises the following key salary components. Typically, employees have a CTC – cost to the company – associated with them.

This article will show you a simple salary slip format that takes the least effort and can be easily used in your company. With so many options, deciding which template to follow for your employees can get a little overwhelming. There is no fixed template for a salary slip, so you can find a broad range of samples online when you search ‘how a salary slip looks like’. Not only do your employees expect to be paid on time and all they are owed, but India's workforce rules and regulations also mandate it. This includes knowing how to make a salary slip that is easily comprehended and captures all the essential payment-related details. Managing payroll is crucial if you are a business owner or an employer.

Salary slip formats