Keep a track on the new pay slip every month for salary details towards income, deduction, take home, net pay etc. And it is essential to know how important for an employee to download the e-payslip that will come with all pay details with bank account number and PF accounts with PAN number
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The benefits of the Salary Pay Slip
- Pay Slip is also known as the Salary slip which is a document that is issued to the employees from their employers or from the organization. It contains the usual breakdown of the details of monthly salary that is deposited to them. There are various particulars on the salary slip that would give a clear detail on how much the employee would be paid.
- The reason for a Pay Slip is to make sure that every employee receives the basic payment every month which is known as Basic pay. Particularly, the additional benefits that an employee receives are also added and tagged on the same salary slip for clear briefing, and one might assume that the pay slip is only important to an employee which is true but at the same time it is also important to the employer.
- The Pay slip or the Salary slip functions as an authentic proof that the employee has worked for a specific period of time mentioned in the slip and the employer has provided them with the salary up to date as well.
Why is the Salary Slip important to an Employee?
In simple terms a Pay slip or the Salary slip is the amount of money deposited by the employer to the employee’s account for the specific period of time mentioned in the slip. It will have all the particulars and elements listed out explaining how the salary has been revised and sent. The most important thing that an employee is expected to know is that when they apply for a new job at another company or another organization, then they will have to issue/submit the previous salary slips from the past 3 or 6 months salary slip to them for verification purposes for proof that you do have work experience in the past company.
Every Organization. or Employer will maintain an online payroll management system which they call Employee Management System (EMS). Anyone who uses SAP management, ERP and another one with another software wherever in the system, the user will be assigned a unique Employee ID for the company they work for and a password to log into the Management system and to also download the salary slips every month.
Salary slips and its Uses:
- Income Tax Filing : All the salaried employees and with a standard source of income are expected to file for Income Tax have to return and they will be expected to attach the salary slips with the forms for proof with other mandatory documents.
- Loans for Home, Car and more : If you want to apply for loans for various reasons like Home, car or construction loans, you will have to provide proof of the current employment which can only be completed by giving the salary slips.
- Proof of Employment : There is no evidence that you worked in a company or organization without providing the proof of the payslip for the month. It is advised to download the salary slips every month for future reference. In recent days, the only proof of employment is the payslip you receive from the company. Major IT employees submit their payslips as proof of employment from their previous company when they shift and get a job in another company.
The details mentioned in the payslip
The Payslip is generally a clear-cut documentation of the employee’s monthly payment from their employer which is briefly divided into different sections that explain how their salary would be calculated.
Income Section of the PaySlip
- Basic Salary : The basic salary is the minimum salary amount you will be offered without any of the additional benefits added for that month or that year, and also it is to be noted that this comprises only 40% to 50% of the total salary and not the whole.
- HRA : Home Rent Allowance is one of the largest benefits most of the IT and government employees get, In that Payslip you will be able to find a line with HRA and the amount would have been allotted as the HRA benefit to you for that particular month.
- LTA : The LTA amount that is deposited to your salary account for that month will be mentioned on the pay slip under LTA section
- Bonus : The Government of India has made amendments and stated that employers should give bonus to their employers and that the given bonuses should mandatorily be a part of their legal paperwork, So every bonus that you receive during festivals or the end of the year are mandatorily added to the Pay slip.
Payslips and deductions:
Deduction is a very crucial part of your pay slip which will contain the amount that is deducted from your total salary for a few reasons like PF, Professional Tax and TDS.
- Provident Fund : The employment provident fund usually deducts 12% of your basic salary every month towards their Provident fund act and this amount is actually saved in your own account, which you will be able to withdraw after you retire or during work in different cases.
- Professional Tax: Every company or Organization will deduct a certain amount of tax towards tax payment to the Government of India.
- Tax Deductible at Source (TDS) : TDS is a form of tax that is deducted from the employee’s account by the employer towards the PF act.
What is a ePayslip and its functions:
Online revolution is in its fast pace and all the companies, brands and organizations that manage a lot of employees have upgraded to online Payroll Management Systems.
In these systems every employee will receive an employee ID and password through which they will be able to access their Payslips online directly. This process of accessing payslips online is called an ePayslip or Electronic Payslip management system, and the Government Sector Organization is now using the facility of ePaySlips.
Generally, you will receive your Payslip physically (hard copy) and it will contain a stamp and a signature.But the e-Pay slip will not have any of those signatures or stamps, but there will be a note on the Payslip stating that this will operate as the original payslip.
Also Read: HRMS Odisha Portal Payslip 2021, Login Salary Slip at hrmsodisha.gov.in
The importance of Payslip to the Employers:
An employer or the organization considers the Payslip a very important thing for various reasons
- Employee Assessment: Organizations and companies assess their employees at the end of every year and they also provide them with the details of revised salary which they call an increment. In order to finalize the increment, they revise the previous salary or payslips and based on them, the improved increment is decided and finalized and mentioned in their latest salary slips.
- Convenient Employee Management: Certain organizations have 100 employees while others have 1000 or more. And this process of salary becomes challenging without the help of online Payroll Management Systems and payslips.