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Salary Slip Format Explained: What Every Line on Your Payslip Means

Your salary slip shows how your pay is calculated. Here is a sample payslip and a simple explanation of every earning and deduction on it.

By Raaz sharma. Published 2 Nov 2026. 3 min read.

The short answer: a salary slip (payslip) is a monthly statement from your employer that lists your earnings (basic, HRA, allowances), your deductions (PF, ESIC, professional tax, TDS) and your net pay — the amount credited to your bank. Keep every slip: you need them for loans, visas, new jobs and tax.

Sample salary slip

EarningsAmount (₹)DeductionsAmount (₹)
Basic10,000Employee PF (12% of basic)1,200
HRA4,000Professional tax200
Conveyance allowance1,600ESIC (0.75% of gross)150
Special allowance4,400TDS (income tax)0
Gross earnings20,000Total deductions1,550
Net pay (credited to bank)18,450

This is a simplified example; your slip may show other allowances or deductions. Professional tax depends on your state.

The top section

  • Company name and address
  • Your name, employee ID, designation and department
  • Month, days worked and leave taken
  • Bank account, PAN and UAN (PF number)

Check these every month — a wrong PAN or UAN can cause tax or PF problems later.

Earnings explained

  • Basic salary: the core part of your pay. PF and gratuity are calculated on it.
  • HRA (House Rent Allowance): helps with rent; part of it can be tax-exempt under the old tax regime if you pay rent.
  • Conveyance or travel allowance: for commuting.
  • Special allowance: the balance amount that completes your salary structure.
  • Overtime, incentives, bonus: shown in the months they are paid.

Deductions explained

  • Employee PF: usually 12% of basic, saved in your PF account. Your employer adds a matching contribution that is not shown as a deduction.
  • ESIC: applies if your gross pay is up to ₹21,000 a month; the employee share is 0.75% of gross and gives you medical cover.
  • Professional tax: a small state tax in some states, up to ₹2,500 a year.
  • TDS: income tax deducted only if your yearly income is taxable.
  • Loss of pay (LOP): deducted for unpaid leave or absent days.

Why your salary slip matters

  • Proof of income for bank loans, credit cards and rent agreements
  • Required by new employers to confirm your last salary
  • Helps you check that PF and ESIC are really deducted
  • Useful for filing income tax returns

What to check every month

  1. Days worked match your attendance.
  2. PF deduction is shown and your UAN is correct.
  3. Net pay matches the amount credited to your bank.
  4. Incentives and overtime are included as promised.

If something is wrong, email HR with a screenshot. Also read CTC vs in-hand salary to understand your full pay structure.

Looking for a better-paying job? Browse jobs on JobZeno.

Frequently asked questions

What is a salary slip?

A monthly document from your employer listing your earnings, deductions and the net pay credited to your bank account.

Is the employer required to give a salary slip?

Most labour laws require employers to maintain wage records, and most companies issue payslips. Ask HR if you do not receive one.

Why is PF deducted from my salary?

PF is a retirement saving. You contribute part of your basic salary and the employer adds a matching amount to your PF account.

How do I get old salary slips?

Ask your HR or payroll team, or check the company's payroll portal. Keep a downloaded copy of every month's slip.

Sources

  1. EPFO — Employees' Provident Fund Organisation, accessed 2026-11-02
  2. ESIC — Employees' State Insurance Corporation, accessed 2026-11-02

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