A salary slip (payslip) records what an employer paid for a particular pay period and what was deducted. The exact format differs between employers. Read it alongside your offer letter, employment contract and applicable payroll policies.
CTC, gross salary and take-home pay
- CTC (Cost to Company): the employer's stated annual cost of employing you. It may include fixed pay, employer contributions, insurance, gratuity estimates and variable compensation.
- Gross earnings: salary components earned for the pay period before employee-side deductions.
- Net or take-home pay: the amount payable after deductions shown in payroll.
CTC divided by 12 is not necessarily the monthly bank credit. Some components are annual, conditional or paid separately, and employer-side benefits may be included in CTC but not paid as monthly cash.
Common earnings sections
Depending on the employer, earnings may include basic pay, house rent allowance (HRA), special allowance, conveyance or other allowances, incentives, overtime and reimbursements. Check which components are fixed, variable, taxable or conditional under your employment terms.
Common deductions
- Employee provident fund (EPF): contribution under the applicable provident fund rules and salary basis.
- Professional tax: where applicable under the relevant state law.
- Income-tax TDS: tax withheld based on payroll declarations and applicable tax rules.
- ESI: where the employee and establishment are covered and eligibility conditions apply.
- Other authorised deductions: for example, employee insurance contributions or recoveries permitted by policy and law.
How to check a payslip
- Confirm your name, employee ID, employer and salary period.
- Compare paid days, leave without pay and attendance with your records.
- Check each earnings component against your offer letter or revised compensation letter.
- Review PF, tax and other deductions and ask payroll for the calculation basis if unclear.
- Compare net pay with the bank credit, allowing for payment timing or separately paid reimbursements.
- Keep monthly payslips and annual tax documents securely.
Questions to ask HR or payroll
- Which salary components are fixed and which depend on performance?
- What salary amount is used for PF calculation?
- How are tax declarations and proofs reflected in TDS?
- When are reimbursements, incentives and annual components paid?
- How can I obtain a corrected payslip if an error is found?
Important: Payroll rules and tax treatment can change and depend on individual circumstances. This guide is general information, not tax or legal advice. Verify current requirements with official government sources or a qualified tax professional.
Keep your records safe
Store payslips, Form 16, tax declarations and offer letters in a private, access-controlled location. Avoid sharing full salary documents publicly because they can contain personal and employment information.