Salary Slip Format: Payslip Example + Free Generator

The short answer

A salary slip (also called a payslip or wage slip) is the statement an employer gives an employee for each pay period. It shows what the employee earned, what was deducted and the net pay that reached the bank account.

A good salary slip format has six parts:

1. Employer details: business name and address.
2. Employee details: name, employee ID, designation, UAN (if covered by PF), ESI number (if covered by ESI) and PAN.
3. Pay period: the month, the days in the month, paid days and LOP (loss of pay) days.
4. Earnings: basic and DA, HRA, other allowances, overtime, bonus.
5. Deductions: PF, ESI, professional tax, TDS, advances recovered.
6. Totals: gross earnings, total deductions and net pay, with net pay in words.

If you just want the slip, the free salary slip generator prints all of this on one A4 page. The rest of this guide explains each row, with a worked example.

Is a salary slip compulsory?

Yes. Section 50(3) of the Code on Wages, 2019, one of the four labour codes now in force, says every employer shall issue wage slips to employees in the form and manner prescribed. The Ministry of Labour’s summary of the Code adds that, under the rules, slips can be given electronically or on paper, on or before the day wages are paid.

There is one exception. Section 50(4) leaves out an employer who employs not more than five persons for agriculture or domestic purposes, though that employer must still show proof of wage payment when an inspector asks.

The exact form comes from the rules, and states make their own. Check the rules of your state before you settle on a format. Apart from the law, employees need slips for home loans, credit cards, rent agreements, visa files and their next job.

Salary slip components, row by row

Component	What it is	The rule (as of November 2026)
Basic + DA	The fixed core of the pay. PF is worked out on it.	Under the labour codes, if allowances left out of “wages” (such as HRA and conveyance) are more than half of total pay, the excess counts as wages (Code on Wages, section 2(y)). That is why many employers keep basic + DA at half of gross or more.
HRA	House rent allowance.	Part of it can be tax-free under the old tax regime, depending on the rent and the city.
Other allowances	Conveyance, special or any other fixed allowance.	Usually taxable salary.
PF (employee share)	Employees’ Provident Fund.	12% of PF wages (basic + DA), in establishments covered by EPF (generally 20 or more employees). Wage ceiling for mandatory coverage: ₹25,000 a month from 17 September 2026.
ESI (employee share)	Employees’ State Insurance.	0.75% of wages, for employees earning up to ₹21,000 a month (₹25,000 for persons with disability) in covered establishments.
Professional tax	A state tax on employment.	Set by each state. Gujarat: nil up to ₹12,000 a month, ₹200 a month above ₹12,000.
TDS	Income tax deducted from salary.	Section 392 of the Income-tax Act, 2025 (section 192 of the 1961 Act until 31 March 2026).

The employer’s own PF and ESI share is not a deduction. The employer pays 12% of PF wages on top of the salary (8.33% goes to the Employees’ Pension Scheme and the rest to PF), plus 0.5% for EDLI insurance, and 3.25% of wages for ESI. Some slips print the employer’s share in a separate box for information; it never reduces net pay.

The PF ceiling moved to ₹25,000

The PF wage ceiling had been ₹15,000 a month since September 2014. The Union Cabinet approved ₹25,000 on 16 September 2026, notified with effect from 17 September 2026. What this means on a slip:

• An employee whose PF wages are up to ₹25,000 must now be enrolled in EPF, EPS and EDLI, even if they were left out before because they earned more than ₹15,000.
• For PF wages above ₹25,000, the contribution can generally be limited to 12% of ₹25,000, which is ₹3,000 a month (it was ₹1,800 at the old ceiling). Contributing on the full, higher wage is allowed where the PF scheme permits it.
• Many salary slip templates online still say ₹15,000 or ₹1,800. Update yours.

Salary slip example: October 2026, Gujarat

A trading firm in Gujarat with 25 employees, so it is covered by both PF and ESI. Here are the October 2026 slips for a helper and a supervisor, both with a full month and no LOP:

Row	Helper	Supervisor
Basic + DA	₹10,000.00	₹20,000.00
HRA	₹4,000.00	₹8,000.00
Other allowances	₹6,000.00	₹12,000.00
Gross earnings	₹20,000.00	₹40,000.00
PF: 12% of basic + DA	₹1,200.00	₹2,400.00
ESI: 0.75% of gross	₹150.00	Nil (gross above ₹21,000)
Professional tax (Gujarat)	₹200.00	₹200.00
TDS	Nil	Nil
Total deductions	₹1,550.00	₹2,600.00
Net pay	₹18,450.00	₹37,400.00

Net pay in words: “Rupees Eighteen Thousand Four Hundred and Fifty Only” and “Rupees Thirty Seven Thousand Four Hundred Only”.

What to notice:

• PF is on basic + DA, not on gross. The helper’s PF is 12% of ₹10,000, not of ₹20,000.
• The supervisor’s PF is new. Her PF wages are ₹20,000. Under the old ₹15,000 ceiling, a person joining at that wage could stay out of PF. From 17 September 2026 she must be covered, so ₹2,400 comes off her slip and the employer adds its own ₹2,400.
• ESI stops at ₹21,000. The helper’s gross is ₹20,000, so ESI applies. The supervisor’s ₹40,000 is above the limit.
• TDS is nil for both. At about ₹2.4 lakh and ₹4.8 lakh a year, no income tax is payable under either tax regime, so nothing is deducted.

The employer’s cost for the helper is more than ₹20,000: it also pays ₹1,200 PF (₹833 to the pension scheme, ₹367 to PF), ₹50 EDLI, PF admin charges and ₹650 ESI. None of that appears in the deductions.

If an employee has LOP days, earnings are usually reduced by paid days ÷ days in the month, and PF and ESI follow the reduced wages. The generator can prorate each earning for you.

How TDS gets onto the slip

TDS is the one row the employer has to estimate. Under section 392 of the Income-tax Act, 2025, the employer deducts tax at the time of payment, at the average rate of tax on the employee’s estimated salary income for the whole year, taking into account the declarations the employee gives.

An example with assumed figures: say the employer estimates a sales manager’s tax for the 2026-27 tax year at ₹84,000, after the tax regime that applies to her and the deductions she has declared. If ₹42,000 was deducted from April to September, the remaining ₹42,000 is spread over October to March, which is ₹7,000 on each slip. If her pay or her declarations change, the employer works out the estimate again.

After the year, the employer issues the TDS certificate in Form 130 (earlier Form 16) and files the quarterly TDS statement for salaries in Form 138 (earlier Form 24Q). The tax rates, the regime choice and an individual employee’s deductions are for your CA; the slip only shows the month’s figure.

How to make a salary slip in 5 steps

1. Fix the salary structure. Split the monthly pay into basic + DA, HRA and allowances, keeping basic + DA at half of gross or more.
2. Close the month’s attendance. Note the days in the month, paid days and LOP days.
3. Work out the deductions. PF on basic + DA (up to the ₹25,000 ceiling if you limit it), ESI if gross is ₹21,000 or less, your state’s professional tax, and the month’s TDS.
4. Fill in the slip. Type everything into the salary slip generator. It adds the rows to the paisa, writes net pay in words and gives you an A4 page to print or save as a PDF. Press “Next employee” and the company details stay for the next slip.
5. Pay, hand over, keep a copy. Give the slip on or before the day you pay, check that net pay matches the bank transfer, and keep a copy of every slip with your salary register.

Mistakes to avoid

• Taking PF on gross salary instead of basic + DA, or still capping it at ₹15,000 after 17 September 2026.
• Deducting ESI from an employee whose wages are above ₹21,000, or forgetting it for one who is below.
• Using another state’s professional tax slab.
• Printing the full bank account number. The last four digits are enough.
• A net pay that does not match the amount actually transferred.
• Issuing a slip for salary that was not paid. A salary slip is a record of a real payment; banks and landlords rely on it.

For the other side of the counter, money you receive, the guide to payment receipts and receipt vouchers explains what a receipt must show, and the free payment receipt generator makes one in the same way.

Where VyapRise fits

VyapRise is GST billing, inventory and accounting software. It keeps an Employees list, but it has no payroll module: it does not calculate salaries, file PF or ESI returns or make salary slips inside the app. The free salary slip generator on our website is separate, free and runs in your browser; only your company name, address and logo are remembered there, and employee details are never sent to our server.

If you keep your books in VyapRise, record each month’s salary payment as an expense, so it appears in your profit and loss. Expenses and the full accounts are on the Pro plan.

This guide reflects the Code on Wages, the EPFO wage ceiling notification, ESIC rates, Gujarat’s profession tax schedule and the Income-tax Act, 2025 as of 1 November 2026. Rates and ceilings change by notification; confirm PF, ESI and TDS for your own business with your CA.

Sources

The official text behind this guide, on government sites (links checked 1 November 2026):

• Ministry of Labour and Employment: the Code on Wages, 2019, including section 50 on wage slips and section 2(y) on wages (PDF)
• PIB backgrounder, 23 November 2025: Code on Wages, wage slips under section 50(3) read with rule 34 (PDF)
• PIB, 16 September 2026: Cabinet approves EPFO wage ceiling of ₹25,000 from 17 September 2026
• PIB, 23 September 2026: EPFO wage ceiling raised from ₹15,000 to ₹25,000, gazette notification dated 17 September 2026
• EPFO: frequently asked questions (12% employee and employer shares, 8.33% to pension, 0.5% EDLI)
• ESIC: rates of contribution (0.75% employee, 3.25% employer)
• ESIC: coverage and the ₹21,000 wage limit
• Gujarat Commercial Tax Department: rate of profession tax (PDF)
• Income Tax Department: FAQs on tax deducted at source, section 392 on salaries (PDF)
• Income Tax Department: Form No. 130 (earlier Form 16)