How to make a salary slip (payslip format for small business)

A salary slip is the monthly record of what you paid an employee and why. Getting the format right keeps staff informed and your payroll compliant. Here is how to make one.

Step 1: Add employer and employee details

Business name and address, employee name, ID, designation, month, and days paid. This heads every payslip.

Step 2: List the earnings

Basic pay, HRA, and any allowances (conveyance, special, etc). These add up to gross earnings.

Step 3: List the deductions

Employee PF contribution, ESI if applicable, professional tax, and TDS on salary. These reduce the gross.

Step 4: Show net pay

Gross earnings minus total deductions equals net pay, the amount actually credited. Show it clearly and in words.

Step 5: Add PF/ESI/UAN numbers

Include the employee's UAN and ESI number where relevant, so the slip doubles as a compliance record.

Step 6: Generate it every month

Issue a slip each month, ideally from payroll software so PF, ESI and TDS are calculated automatically and the slip is consistent.

Frequently asked questions

Is a salary slip legally required?

Employers are expected to provide wage records, and a payslip is the standard proof of salary. Employees also need it for loans, visas and rentals, so issuing one is good practice.

What deductions go on a salary slip?

Commonly employee PF (12 percent of basic), ESI (if the employee is covered), professional tax (state-specific), and TDS on salary above the taxable limit.

Can I make salary slips without software?

For a couple of employees a template works, but past a handful, payroll software that auto-calculates PF, ESI and TDS and generates slips saves time and errors.