Salary Slip Template for Indian Companies

What is a salary slip?

A salary slip, also known as a payslip, is a monthly document issued by an employer to an employee detailing the components of their salary for the pay period. In India, the salary slip is the primary proof of income used for tax filing, loan applications, visa processing, and rental agreements. It must show the breakup of earnings, statutory deductions, employer contributions, and net pay credited to the employee's bank account.

Indian payroll teams typically prepare the salary register at the end of each calendar month, run statutory checks, finalise TDS, and issue payslips alongside the salary credit. The payslip must reconcile with the Form 16 issued at the end of the financial year. For employees who change jobs mid-year, the payslip is also the primary input for the new employer to compute consolidated TDS under Section 192 of the Income-tax Act, 1961.

When to use this template

Issue a salary slip every month, typically on or before the salary credit date. Many companies generate the slip automatically through payroll software and make it available via the employee self-service portal. The template below is suitable for small to mid-sized Indian companies that need a clean, statutory-compliant payslip format. For establishments covered by the Payment of Wages Act, 1936 or the Code on Wages, 2019, issuing a payslip is a statutory obligation. The same format with minor adjustments works for full-time employees, fixed-term workers, and apprentices covered by the Apprentices Act.

What to include in a salary slip

• Company name, address, and logo
• Pay period (month, year) and date of generation
• Employee name, ID, designation, department, and date of joining
• PAN, UAN, PF account number, ESI number (where applicable), bank account
• Days payable, days worked, leave with pay, loss of pay
• Earnings: Basic, HRA, Conveyance, Special Allowance, LTA, Bonus, etc.
• Deductions: PF, ESI, Professional Tax, TDS, loan recovery
• Net pay in figures and words

Sample salary slip template

Legal considerations under Indian law

Issuance of a payslip is mandated by the Payment of Wages Act, 1936 and the Code on Wages, 2019 for establishments to which they apply, as well as by most state Shops and Establishments Acts. Statutory deductions and contributions are governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Employees' State Insurance Act, 1948, the state Professional Tax Acts, and the Income-tax Act, 1961. The salary slip must show only authorised deductions under Section 7 of the Payment of Wages Act and must be retained as part of payroll records for at least three years.

The definition of wages under the Code on Wages, 2019 also influences how the salary structure is designed. Where allowances exceed 50 per cent of total remuneration, the excess is treated as part of wages for the purposes of PF, gratuity, and bonus computation. This has a direct effect on payslip presentation and statutory contributions. Payroll teams should review the salary structure annually to ensure ongoing compliance with the new definition and the related rules notified by the central and state governments.

For multi-state operations, the payslip should also reflect state-specific Professional Tax slabs, applicable labour welfare fund contributions, and any state-specific bonus or allowance schemes. Companies that operate across multiple states should maintain a single payslip template with state-aware fields, rather than separate templates per location, to ensure consistency and reduce maintenance overhead.

How Texlaculture HRMS automates this

• Auto-generation of monthly payslips with statutory-compliant structure
• State-specific Professional Tax and ESI rules pre-configured
• Employee self-service download with year-wise archive and Form 16 access
• Digital signature, password-protected PDFs, and audit trail for every payslip

Frequently asked questions

Is it mandatory to issue a salary slip in India?

For most establishments covered by the Payment of Wages Act, 1936 or the state Shops and Establishments Act, issuing a payslip is mandatory. In practice, all formal employers issue payslips monthly.

What deductions can legally appear on a payslip?

Only authorised deductions under Section 7 of the Payment of Wages Act — including PF, ESI, PT, TDS, recovery of advances, fines under the standing orders, and absence from duty. Arbitrary deductions are not permitted.

Should employer PF be shown on the payslip?

It is good practice to show it separately for transparency, but it is not a deduction from the employee's salary; it is an additional company cost.

How long should payslips be retained?

At least 3 years under the Payment of Wages Act and 7 years under the Income-tax Act for TDS records. Most companies retain payslips for the lifetime of the employee record.

Can a payslip be used as income proof?

Yes. Banks, embassies, and landlords commonly accept the most recent 3–6 payslips as proof of income alongside Form 16.

Should the payslip show the new and old tax regime computation?

It is not mandatory, but many employers show the applicable TDS based on the regime elected by the employee in the investment declaration form, with a brief note. The annual Form 16 captures the full computation.