Payslip that is also known as a Wage slip or Salary slip is a document given by an employer to an employee after the payment of salary. A Payslip includes details about salary such as deductions and total earnings. It also acts as proof that an employee got paid for the particular month. Payslip is very useful to employees when they need to submit their earning proof. Mostly while applying for any type of loan, Payslips are analyzed and the loan amount is decided.
Generally, the items on a payslip can be broken down into three parts:
- Basic pay
- Taxes, deductions, and contributions
- Net pay
As per the Payment of Wages Act 1991, all employees are entitled to receive a payslip.