Glossary
What is a payslip?
What a payslip is, what every line on an Indian payslip means, and how one month's pay is worked out from earnings and deductions.
Updated
In short
A payslip is the monthly statement of an employee's paid days, earnings, deductions and net pay. SimpleERP builds payslips from salary structures and attendance, and employees open their own on their phones.
A payslip is the statement an employee receives for each pay period, showing paid days, each earning, each deduction and the net pay. It is the employee's proof of income for loans, rent and tax, and the employer's record of what was deducted for provident fund, professional tax and income tax on the employee's behalf.
Payslip: a worked example
Karthik R is the store keeper at Lakshmi Steel Furnitures in Coimbatore. His payslip PR-2026-27-0006/EMP-0007 for September 2026 covers 30 paid days of 30.
| Earnings | Amount | Deductions | Amount |
|---|---|---|---|
| Basic | ₹18,000 | Provident fund, 12% of Basic | ₹2,160 |
| HRA, 40% of Basic | ₹7,200 | Professional tax | ₹180 |
| Conveyance | ₹1,600 | TDS | ₹0 |
| Special allowance | ₹3,200 | ||
| Gross pay | ₹30,000 | Total deductions | ₹2,340 |
FAQ
Questions, answered
What must an Indian payslip show?
At least the employee's name and code, the month, paid days, each earning, each deduction and the net pay. Most also show the employer's name and address, PAN or bank details in masked form, and the net pay in words. Your state's shops and establishments rules may ask for more.
Is a payslip the same as a salary certificate?
A payslip is not a salary certificate. A payslip covers one month. A salary certificate is a letter from the employer confirming the employee's role and pay, often asked for by banks. Form 16 is a third document: the annual certificate of tax deducted on salary.
Can employees download their own payslips in SimpleERP?
Employees can download their own payslips in SimpleERP. With a self-service login, an employee sees their own payslips once the month's run is approved and can download each as a PDF from their phone. They cannot see anyone else's pay.
How long should a business keep payslip records?
Labour and tax laws expect wage records to be kept for several years, and the period differs by law and state. Keep payroll records at least as long as your books of account, and check the current rules with your CA.
Related
Keep reading
Gross vs net salary
Gross is total earnings before deductions; net is what reaches the employee's bank after them.
Read morePayroll register
One row per employee and one column per pay component for a month, with totals that match the salary journal.
Read morePayroll
Salary structures, monthly runs and payslips with PF, PT and TDS, posted to the books.
Read more
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