What Is a Salary Slip? Meaning, Format & Legal Requirements in India
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A document provided to employees detailing their earnings, deductions, and net pay for a specific period. Salary slips serve as proof of income and compliance with labor laws.
A salary slip — also called a payslip — is a document provided to employees that outlines their earnings, deductions, and net pay for a specific period, typically monthly. It serves as proof of income, helps employees understand their compensation, and ensures compliance with Indian labour laws.
In India, issuing salary slips is a best practice and, in many states, a legal requirement under the Payment of Wages Act and Shops and Establishments Acts. Digital salary slips are now common with HR and payroll software.
💬 “Pagarai’s payroll module automated our salary slips, ensuring 100% compliance.” — Vikram, Payroll Manager
👉 Need compliant salary slip formats? [Get Pagarai’s salary slip templates →]
Key Components of a Salary Slip
| Component | Purpose |
| Basic Salary | Fixed pay for the role |
| Allowances | HRA, travel, and other benefits |
| Deductions | PF, professional tax, income tax, etc. |
| Gross Salary | Total earnings before deductions |
| Net Salary | Amount payable after deductions |
| Pay Period | The month or period covered by the slip |
Bonus: Include both employer and employee PF/ESI contributions for transparency.
Why It Matters
- Acts as proof of income for loans, visas, and credit applications
- Helps employees understand their earnings and deductions
- Ensures transparency in payroll practices
- Supports compliance with wage and tax laws
- Reduces disputes over pay calculations
Common Tools for Generating Salary Slips in India
- Keka HR, GreytHR – for automated payroll and payslip generation
- Zoho Payroll – for cloud-based salary slip creation
- Pagarai HR Suite – for custom salary slip formats with compliance tracking
How Pagarai Helps
- Provides compliant salary slip templates for all Indian states
- Automates payslip generation with payroll integration
- Ensures accurate tax and statutory deductions
- Stores payslips digitally for easy employee access
- Customises salary slips to match company branding
FAQ
Q1: Is issuing a salary slip mandatory in India?
Yes — in many states, under labour laws like the Payment of Wages Act.
Q2: Can salary slips be issued digitally?
Yes — digital payslips are valid if they contain all required details.
Q3: How long should salary slip records be kept?
At least three years for compliance and audit purposes.
Q4: Do startups need to give salary slips?
Yes — all registered employers should issue them, regardless of size.
