5 Ws And 1 H of Salary Slip
We all know that an offer letter proves that a person has been offered a specific position in a company. Likewise, a relieving letter proves that an individual has been relieved from our duties and responsibilities in a company and is no longer associated with it. All these documents come in handy in different situations. One such document is a salary slip or payslip.
Although a payslip is one of the well-known documents among working individuals, many do not have a clear understanding of it. If you are one of them, you are at the right place now.
In this blog, we will tell you 5 Ws and 1 H of salary slips. So, let’s dive in.
What is Payslip?
It is a vital document issued by an organization to its employees that spells out every salary component, deduction and many more.
Now, different companies use different payslip formats. Also, it can either be a printed hardcopy or a softcopy that can be mailed to employees. Not to forget, a good number of companies use payroll software these days that auto-generate salary slips. Employees can download on their own without having to disturb anyone.
Who is Eligible?
Every salaried employee is entitled to receive a payslip. Every company, be it small or large, is obliged to provide its employees with this vital document.
When Should It Be Given?
According to the salary slip laws, every employer is entitled to issue salary slips on or before the payday.
Need to mention, some companies in India do not provide payslips every month. Employees working in such firms are expected to request the same whenever they are in need of their payslips. Now, this may sound less tedious but it can impact the employee experience in the long run.
Why Is It Important?
As mentioned earlier, a salary slip proves that an employee draws salary from a company. In addition to this, there are a number of places when a payslip comes in handy. Some of them are as follows:
- Income Tax
Since it includes details that are tax-deductible, it not just helps employees to understand how much tax is to be paid but also aids them in calculating tax returns and refunds.
- Borrowing
Most of the employees out there apply for a personal loan, credit card and more that helps them in difficult times. Now, to acquire these borrowings, banks check the creditworthiness of the individual. Here is when salary slips come into the picture. It helps employees to show their creditworthiness.
- Salary Negotiation
When employees apply for a new job, their payslips can help them to negotiate a higher salary. On the other hand, employees will have to agree with the salary offered by the employer.
There are more but we have included only the top three uses of payslips.
Where Should Employees Request?
The answer to this question may vary from company to company. In some companies, employees are expected to request their employer. But, in most firms, employees reach out to their payroll or accounts or HR department to get their salary slips. Not to forget, automated payslip is also a thing today. Using HR and payroll systems, employees will have the autonomy to download and print their payslips anytime, anywhere.
How Should Companies Create It?
As we discussed at the beginning of this blog, every company uses different payslip formats. However, here are some of the must-have details in a salary slip:
- Details of the employee- His or her name, employee ID, etc
- Details of the company- name and code
- Income and allowances- Basic salary, every allowance such as dearness allowance, medical allowance and much more
- Deductions- TDS, PF, Professional tax, etc
- Signature of the employer and stamp of the organization
That’s it.
We hope this blog helped you to understand salary slips more clearly. Next time you create a payslip, make sure you have all the aforementioned points in your mind.
