Are you an employee of a company?
If yes, then you might have required knowledge regarding the Salary Slip offered by the company for your work. For the people who have started working recently may not have enough idea about Salary slip. If you are one among those people then here is the clear data with respect to Salary slip and its elements.
What is Salary Slip/ Pay Slip?
Salary or Pay is the amount confirmation document given to every employee of the company (either it might be the small or large company). While some mail the pay slip and few will issue it in the form of paper. The Salary Slip contains all details like name of the employee, period of work, payment date, amount, cuttings, and much more. Payslip discloses your payment amount for the month with all deductions for the leaves that you have taken. If you have done over time work then your Salary slip shows the data about the amount given for the extra hours.
Salary Slip Rights:
It is the right of every individual to ask for a real Salary slip to know your payment details for the month. You can request the owner of the company to issue the Salary slip for the work and payment received by you. If you are not issued with a Salary slip then you can get it from Human Resources or Finance or Administration department of your employer. If you have any quires regarding the amount paid or the particulars printed on the payslip then you can immediately contact the payroll service provider. You can also get the pay slip at your respective bank if you have provided bank details for the employer.
Salary Slip Form:
Most of the people who are receiving Salary Slip for the first time may not have known about how the paper format looks like. Yes, it is your responsibility to know what information could be added in the month payslip issued by a company. Salary Slip consists of the name of the person, address, designation, employee number, grade or rank, number of working days or hours, number of leaves, official holidays, overtime working hours, allowances(Housing, residence, transport, medical, outstation, dearness allowances), deductions(Social Security/ Provident Fund, Medical, health insurance, workplace/ group accident cover) and any advance payments or loans etc will be included in the Salary Slip.
Basic:
The name itself states that it is the first component of your Salary which is 40- 50% of your total pay. House rent allowance and Provident fund will always be linked to basic pay.
House Rent Allowance(HRA):
House Rent Allowance is a mandatory thing that constitutes up to 10%- 35% of your salary and it has an exemption from income tax for certain limit when you prove that you are paying the rent amounts with receipts issues.
Provident Fund(PF):
Any company will deduct 12% from your basic salary under the category of PF bearing to the prevailing provisions of the law. This PF is meant for your retirement expenses or when you leave the company and it is listed under tax exemptional case.
Income Tax:
Every employer deducts Income tax amount from the salary paid to his/ her employee from the basic salary. It is mandatory to provide tax saving papers like health, life insurance premiums so that you can escape from excess deductions from your basic salary.
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Conveyance Allowance:
If you are traveling to any places for company work then conveyance allowance amount will be paid by adding to salary. If conveyance amount is less than Rs:1600 then it will be under tax exemption and if it is more then you need to check the impact on your basic pay.
Hope you got the required points about Salary slip and the deductions from the points listed above.