A Salary Slip is a document that provides information about an employee’s salary. It includes information about all the allowances, deductions, and the net salary of the employee. It helps the employees to have a check on their every month’s salary. If a mistake happens in the given salary of the employee, then he can check the salary slip and ask the management to correct the mistake.
Salary slips are given to all the employees every month. Some people keep them and some just through them because they don’t know the value and effectiveness of this document. Salary slips have their importance but most of us are not aware of this fact. Perhaps, we have never used them. A salary slip is also known as a pay slip, that contains the details about the salary of a person. Not all organizations provide a salary slip but the employee can request a salary slip from the HR of the organization. I suggest you take care of your salary slip because it is a handy document and provides accurate information about your salary.
What you should compulsorily Include in a Salary Slip?
A salary slip is a vital document. It is legal proof that a person is an employee of a specific organization. This document helps you in many matters so you should care about that. Below we have listed some important things that you should include in a salary slip if you are going to create one.
Here are some things that you should compulsorily include in the salary slip:
- Name and contact details of the company.
- Logo of the company.
- Name of the employee.
- Employee ID number.
- The designation and the department of the employee.
- Bank account number of the employee.
- Employee’s provident fund details.
- Earnings and deductions.
- The gross and net pay of the employee.
One can easily form a salary slip with the help of salary slip templates. There are many templates available on the internet that one can use according to the need. However, it is necessary to choose a good template that provides the facility of customization. Searching for the right templates is a time-consuming task. So to help you out we have provided 10 free and customizable salary slip templates below. They are our own created templates. So you must give them a try and we are confident that they will accurately assist you to create the perfect salary slip.
Free Salary Slip Templates:
Here you can download these 10+ Free Salary Slip Templates in MS Word format.
Importance of a Salary Slip:
In this present time, a salary slip is very important. You should keep it safe. It enables you to maintain a record of all the paid salaries. In this way, the management can maintain a record with little effort.
Here we have listed some points to show the importance of the salary slip:
Proves that you are an Employee:
Suppose that you want to apply for a visa. In that case, you will have to provide a document to verify your employment. At this time your salary slip will help you out. It will help the authorities to recognize that you are a salaried employee in an organization.
Makes it easy to get a Loan:
If you go to the bank to get a loan then they may ask you to provide proof of your employees so they can decide whether they should provide the loan or not. By analyzing and verifying your document, they finally decide whether to give you the loan or not.
Helps to calculate the Income Tax:
A salary slip helps the management to calculate the amount of tax that will be deducted from the salary of the employee. It makes the work easier for them by providing a deep detail about the salary of a person. By using it you can easily prepare income tax returns.
Helps to maintain a Record:
A salary slip enables the management of the company to keep a record of all the salaries that they have paid in a year. By using this document they can easily reduce the risk of future disputes that may arise due to confusion or misunderstanding. This is the easiest and cheapest way to maintain a record and provide proof of employment to the employees.
Components of a Salary Slip:
Each month all the employees receive a salary slip with their salaries made by the other employees of the company. Most companies provide salary slips through email. But still, some companies use hard copies. Look at your salary slip, it will have all the essential components to make things easily understandable.
Here we have listed some important components of a salary slip.
Basic Salary:
A basic salary is an amount that is given to the employee according to the type of work without any allowance or bonus. This is also known as the base pay of the employee. It is the starting rate of the compensation excluding all the extra amounts.
Allowance:
The best component of a salary slip is the allowance that the company provides to the employees to accommodate them. There are different types of allowances such as home, travel, conveyance, variable, personal and medical, etc.
Deductions:
These are those amounts that are excluded or deducted from the employee’s salary. It could be in the form of tax, funds, leaves, etc. This information on the salary slip enables the reader to figure out how much amount is deducted and why it is deducted from the salary. This information is quite necessary to satisfy the employee.
Provident Fund:
A provident fund enables the employees to save an amount for the future. Many large firms use this scheme to accommodate their employees. In short, this scheme shows the company to cut a percentage from the salary of the employee. An equal amount is contributed to this fund. This amount is returned with an increase to the employees.
Tax:
Tax is the certain amount that is deducted from the salary. The person or the employee who receives the amount of the salary is responsible for paying the tax amount.
