Pay Slip Format: A salary slip is a document that will be issued by the employer to their employees. The salary slip contains a detailed breakdown of the employee’s salary, a list of deductions made from the salary, and the contribution of the salary to various sources such as PF, EPF, etc. Usually, the salary slip is shared in soft copy format with their employees, who post the credit of their salary in PDF format. All companies that are established legally as a company are bound to provide salary slips to their employees periodically. This salary slip acts as proof that the employer has paid the salary to the employee.
Simple Salary Slip – PDF Download
A “salary slip” which is also known as pay slip is a document issued monthly by an employer to its employees. It contains the employee salary details, like the basic pay, bonuses, deductions, and more. Click on the following links to download free sample salary payslips.
| Pay Slip Format Files | Downloadable Links |
| Simple Salary Slip Format PDF | Download Here – Link 1 (Google Sheet File) Download Here – Link 2 (Excel File) |
| Simple Salary Slip Format in Excel File | Download Here |
| Simple Salary Slip Format in Excel with Formula – Sample 2 | Download Here |
| Simple Salary Slip Format in Word Doc – Sample 1 | Download Here |
| Simple Salary Slip Format in Word Doc – Sample 2 | Download Here |
| Simple Salary Slip Format Word Doc – Sample 3 | Download Here |
| Simple Salary Slip Format PDF | Download Here |
The recipients of a payslip receive either a hard or soft copy of the same. Although it is generally large or medium-sized organisations that provide a salary slip to their employees, most startups and small organisations shy away from doing that.
That is why employees of such companies have to request their HR managers to get monthly salary slips. Hence it is important for entrepreneurs and small business owners to provide monthly payslips to their employees.
Salary Slip Format in Excel
Microsoft Excel is capable of performing difficult calculations, computations, pivot tables, and much more. Most of the companies plan to prepare a salary slip using Microsoft Excel, since it is one of the most widely used tools. Most people use the Excel file for dealing with huge datasets. Most companies make use of Excel to automate the monthly salary of employees. The steps to create a formatted salary slip in Excel for companies are explained below.
Before creating salary slip format, keep the following things handy.
1. Employee Database and Salary Structure
The first step towards creating a salary slip in Excel format is to establish the employee database. This database should include all the necessary components of the employee, such as name, employee ID, basic salary, and the detailed salary structure. It should also contain information such as which allowances are deducted from the employee’s salary and a list of deductions that are made from the employee’s salary.
2. Gross Salary Calculation
The formula to calculate gross salary is as follows:
Gross Salary = Basic Salary + Allowances
In the gross salary portion, the allowances of the employee are calculated. The allowances in gross salary refer to things such as house rent allowance, transportation allowance, disability allowance, flexible plans, etc. Hence, the basic salary and the allowances are added to calculate the gross salary.
3. Calculation of the Deduction
The next and most important part of the format of the salary slip is to mention deductions. Many organizations have various deduction policies such as PF (provident fund), insurance, medical insurance, and tax deductions that are deducted from the salary. Under this section, the deductions of the employees are calculated on the basis of their basic salary and the database deduction percentage.
4. Net Payable Salary
The last and most important component of a salary slip in Excel is the net payable salary. Net salary is the salary that is credited to employees after all deductions are made. The net payable salary is calculated on the basis of the gross salary minus all deductions. Hence, the formula for the net payable salary is as follows:
Net Payable Salary = Gross Salary – Deductions
Salary Slip Template Excel Free Download
The sample salary slip template excel files can be access from the following page. Everything can be downloaded just in a click:
| Sample Salary Slip Format in Excel File Free Download 1 | Download Here |
| Sample Salary Slip Format in Excel File Free Download 2 | Download Here |
| Sample Salary Slip Format in Excel File Free Download 3 | Download Here |
| Sample Salary Slip Format in Excel File Free Download 4 | Download Here |
| Sample Salary Slip Format in Excel File Free Download 5 | Download Here |
How To Download Sample Salary Slip from Google Sheets?
When you click on the first 2 links, you will be promoted to Google Sheets. To edit and optimise this Salary slip format according to your needs, you can follow any of the two ways:
- Step 1: Click on the following link: Salary Slip Download.
- Step 2: Now the Google Sheet will open on the screen. Now click on the File tab in the menu bar.
- Step 3: Choose “Download” from the drop-down menu, and the salary slip will be downloaded to your device.
Now you can make the necessary changes to the salary slip as per your organization’s needs.
Alternatively, if you have signed in, click on the File tab and choose “Make a Copy“. When you do this, the original document copy will be created on your system. Now that you have the copy, you can modify the salary slip as per your needs.
Importance of Salary Slip for Employees
Original salary slips pays a major role for a salaried employees. A few points why salary or payslips are important for employees have been listed below:
- Apply for loans and credit cards: A salary slip will have all the detailed information about an employee’s designation and his or her salary. Knowing the employee’s salary will help the bank determine if he or she is capable of paying back loans and credit card bills.
- Prove that they are salaried employees. It is important for an employee to have the last three months’ salary slip. If an employee is applying for a VISA or admission to a foreign university, he or she should prove that they are salaried employees, which can be proved using their salary slip.
- Determine your income tax payment: In order to file your ITR, it is extremely important for you to submit your payslip to determine how much salary you are earning and under which tax bracket you will fall.
- Future pay should be negotiated: When you are applying for new jobs with an incremental salary, you should be able to submit your previous salary slip. Based on your previous salary slip, the employer will decide how much of an increment should be given to you.
- To Avail Government Subsidies: The employee’s salary slip is also required if the employee wishes to receive subsidies or enroll in a government scheme. Hence, for an employee to prove that he is working, he should submit his payslips.
Read on to learn about the essentials of a pay slip format for salary.
Basic Template of a Salary Slip
The payment slip format of the salary slip is more or less the same at different workplaces. Here are some of the important factors that a payslip should include.
- Company’s name
- Company’s logo
- Name of the employee
- Employee’s ID number
- Designation of the employee
- Employee’s PAN number
- Leaves took by the employee
- Employee’s Bank Account details
- Operative workdays of the employee
- Employee’s PF Account number
- Earning and deductions
- Gross payment
- Net payment
Components of a Employee Salary Slip
In order to understand the components of a payslip, it’s vital to divide them into two parts:
- Salary & Allowances
- Deductions
Let’s talk about these components in detail.
Employee Salary and Allowances
Here are the payslip components that appear under “Salary and Allowances” in a standard salary slip format.
1. Basic Salary
A basic salary is the amount employers pay their employees before any deduction or increase occurs. The reason for either could be overtime, a bonus, or an allowance. Also known as “base pay,” “basic salary” is the initial compensation rate.
2. House Rent Allowance (HRA)
Employers pay HRA to meet the employees’ accommodation requirements while they live on rent.
3. Leave Travel Allowance
It is that allowance that employees receive for travel. Such an allowance covers all the travel costs within the nation.
4. Conveyance Allowance
Also known as “transport allowance,” “conveyance allowance” is provided to the employees of a company for travel. However, this allowance applies only from their residence to the workplace.
5. Variable Allowance
Employers issue employees a variable allowance when the latter reach their goals or fall far behind them.
6. Medical Allowance
This one is a fixed allowance given to employees to meet their medical needs. It is provided to workers irrespective of the fact that they submit medical bills for reimbursement or not.
7. Personal Allowance
It is the amount of income that an individual is entitled to receive free of charge every year. The calculation of a personal allowance is based on these:
- Gross pay
- Gross salary, CTC, total deduction, and net pay
- Basic salary (40% of CTC)
- DA (50% of basic)
- HRA (20% of basic pay)
8. Special Allowance
Most organisations pay a special allowance to meet their employees’ unique demands or needs regarding their work performance. That is, it is the fixed amount paid above the basic salary to the employees by their employer.
Deductions in Salary Slip
A standard format for a salary slip contains the following deductions:
1. Provident Fund (PF)
It is a savings tool for a company’s employees. PF is a scheme that most organizations handle under the Employees’ Provident Fund and Miscellaneous Provisions Act of 1952.
As per this scheme, an employee has to deduct a fixed amount from his salary. The employer pays an equal amount of the PF. This amount earns interest and allows the employee to create wealth over time.
2. Professional Tax
The next deduction in the usual format of a salary slip is the professional tax. It is the tax levied on workers by the state government. Employees earning through any medium need to pay it from their earnings. Such taxes vary from state to state.
3. Tax Deductible at Source (TDS)
TDS is a particular amount that gets deducted from the salary. It is paid by the company that makes the payment. Conversely, the individual who receives the deposit (employee) is reasonably obligated to pay the tax.
4. Employees’ State Insurance (ESI)
Another deduction in the salary slip format is ESI. It is a health insurance plan designed to offer cash and medical benefits to employees. The employer must contribute to the ESI fund by deducting the employee’s contribution from his salary.
5. Gratuity
It is a monetary benefit given to employees at the time of their retirement. Companies typically deduct a percentage (4.81%) of an employee’s basic pay + DA to pay for gratuity.
Key Pointers to Remember for a Salary Slip Format
- Always have the necessary information about your employees, like their official names, addresses, contact details, and bank account details.
- Write the name of your company in the top left corner. Under that, you can enter the name and professional details of your employees.
- The majority of people create two columns. You can enter salary and allowances on the left side and deductions on the right.
Here’s a simple salary slip format to help you prepare payslips for your organization.
Sample Pay Slip Format for 30,000 per Month
The sample pay slip format for 30,000 per month is given below:
| Pay Slip for the Month of Jan 2023 | |||||||
| Employee Name: | Karthik.M | Bank: | Axis Bank | ||||
| Employee ID: | 14567 | A/C No: | 912534XXX679 | ||||
| Designation: | Hardware Engineer | Total Days in Month: | 31 | ||||
| Salary for the Month: | Jan 2023 | Total Present Days: | 31 | ||||
| Amount in Rs: |
Twenty-Eight Thousand Two Hundred Forty
|
||||||
| Particulars | Basic | HRA | Conveyance Allowances | Medical Allowances | Other Allowances | OT Wages | Gross Salary Earned |
| Gross Salary | 13000 | 5200 | 1600 | 1250 | 8950 | 30000 | |
| Earnings | 13000 | 5200 | 1600 | 1250 | 8950 | 0 | 30000 |
| Less Deductions | PF | ESI | Professional Tax | Loan Recovery | Income Tax | Others | Total Deduction |
| 1560 | 200 | 1760 | |||||
| Net Salary | 28240 | ||||||
FAQs on Salary Slip Format
The frequently asked questions on Salary Slip Format are given below:
How do I make last 3 months salary slip format?
You can make a salary slip format for the last three months by using an online template or a software program. Also you can download free salary slip templates from this page. Some of these programs allow you to customize the format and add your required information. You can also find simple templates online that you can fill out manually.
What are the components that I should include in salary slip format for Pvt Ltd company?
For a private limited company, the components usually included on a salary slip format are the employee name and number, the number of hours worked, wages earned, deductions, any taxes or contributions, and the net salary amount.
How can I make a simple salary slip?
You can create a simple salary slip by using an online template or a software program. Most of these programs allow you to customize the format and add the information you need to the slip. Additionally, you can find templates online that you can fill out manually.
What components to include in salary slip format for cash payment?
When creating a salary slip format for cash payment, it is important to include the employee name and number, wages earned, deductions, any taxes or contributions, and the net salary amount. These components will ensure that the salary slip is accurate and that all payments are recorded properly.
How can I get my salary slip?
There are multiple ways through which you can get your salary slip. One of them is by asking the HR of your company for your salary slip. Another way of getting it is through your bank. Since your salary directly gets credited to your bank account, they can provide you with the salary slip.
Can I make or create my own salary slip?
It is illegal to make your own salary slip. Since the salary slip is generated by the employer, employees cannot create one on their own. Both manual and online processes are available to businesses and organisations for creating salary slips.
What is proof of salary?
A salary certificate letter is proof of salary. Basically, A salary certificate letter is a document that serves as proof of your employment and the company that you are employed, and it is provided by your employer.
Should I create salary slip format for small organisation?
Yes, creating a salary slip format for a small organization is recommended as it helps to ensure accuracy and transparency when paying salary to employees. Additionally, the salary slip can help with tax calculations and compliance with legal regulations.
Conclusion
While the format of a salary slip may vary from company to company, the components stay the same.
An employee’s payslip can be created using software designed especially for the salary slip. Although you can draft salary slips manually, using an HR/payroll platform is ideal.
Such tools allow you to create salary slips quickly and with no hassle. Besides, they offer you customizable payroll solutions and minimise mistakes. Some structured salary slip format software that you can rely on includes RazorPayX Payroll, Asanify, QuickBooks Payroll, OnPay, and Gusto.
However, if you want the freedom to draft an entirely customized payslip, you can use Google Sheets or Excel.
