Every month, your employer must issue a salary slip — it is not a favour, it is a legal obligation. Under the Code on Wages 2019, which became enforceable on 21 November 2025, your payslip must show every earning and every deduction. If yours doesn’t, or if you’re not getting one at all, you have formal remedies. Here is exactly what your salary slip must contain, how to read it, and what to do when something is wrong.
What Is a Salary Slip and Why Does It Matter
A salary slip (also called a payslip or wage slip) is a monthly document issued by your employer that breaks down what you earned, what was deducted, and what you were actually paid. It is simultaneously a compliance document for your employer and an asset for you.
You will need your salary slips for: applying for a home loan or personal loan (most banks ask for the last three months), filing your ITR filing for salaried employees return, claiming tax deductions on PF, HRA and other components, verifying your background check at a new employer, and as evidence if you ever raise a wage dispute.
The Code on Wages 2019 — which replaced the Payment of Wages Act 1936 and three related laws — requires every employer to issue a wage slip for every pay period. The format can be written or electronic (a password-protected PDF emailed to you is fully compliant). The slip must reach you on or before the day wages are paid, and in no case later than the 7th of the following month.
The Three Sections of Every Payslip
A compliant Indian salary slip has three sections: Earnings, Deductions, and Net Pay.
Earnings Section
These are the amounts your employer is paying you before any deductions.
Basic Salary is the foundation. Under the Code on Wages, basic pay plus dearness allowance together must equal at least 50 per cent of your total CTC. This rule, in force since November 2025, matters because PF, gratuity calculation formula and several other entitlements are calculated as a percentage of basic salary. A higher basic means higher PF contributions, more gratuity, and often higher leave encashment. If your payslip shows a very low basic (say, 20–25% of CTC) with large “special allowances” making up the rest, ask HR to confirm the structure complies with the Code on Wages.
House Rent Allowance (HRA) is typically 40–50% of basic (40% for non-metro cities, 50% for Delhi, Mumbai, Chennai, Kolkata under IT rules). HRA is partially exempt from income tax if you are actually paying rent — the exempt portion is the lowest of: actual HRA received, actual rent paid minus 10% of basic salary, or 50%/40% of basic. If you rent a home, ensure your payslip shows HRA separately; a combined figure makes it harder to claim the exemption.
Dearness Allowance (DA) applies primarily to government employees and some PSU workers. In private-sector employment it is often nil or nominal, but it must be shown if paid.
Special Allowance is a catch-all component many private employers use for the remainder of CTC after all other components are set. It is fully taxable with no exemption. There is no statutory requirement for this component, but there is also no prohibition — however, if its size pushes basic below 50% of CTC, the employer is non-compliant under the Code on Wages.
Other allowances may include transport allowance, medical allowance, children’s education allowance, or performance-linked pay. Each should appear as a separate line item.
Gross Salary is the total of all earnings before deductions.
Deductions Section
Employee Provident Fund (EPF) is deducted at 12% of your basic salary plus dearness allowance (subject to a statutory wage cap of ₹15,000/month for mandatory coverage). Your employer contributes a matching 12%, of which 8.33% goes to EPS (pension) and 3.67% to EPF. Both contributions appear on your payslip — the employee’s deduction on the deductions side, the employer’s contribution sometimes shown as a separate CTC line. For a deeper look at how EPF works, see our guide to EPF and UAN in India 2026.
ESI (Employee State Insurance) is deducted at 0.75% of gross salary for employees earning up to ₹21,000/month (the current wage ceiling). If your gross exceeds ₹21,000, ESI does not apply and will not appear on your payslip.
Professional Tax (PT) is a state-level tax deducted monthly. It ranges from ₹0 to ₹200/month depending on your state and salary slab. Maharashtra, Karnataka, West Bengal, Gujarat, Tamil Nadu, Andhra Pradesh and Telangana levy professional tax; many other states do not. It appears on your payslip as “PT” or “Professional Tax.”
TDS (Tax Deducted at Source) is income tax deducted at source by your employer. From FY 2025-26, the New Tax Regime is the default for all employees unless you submit a declaration opting for the Old Regime. Under the New Regime, TDS is calculated on your gross annual income minus the ₹75,000 standard deduction. Under the Old Regime, you can also reduce taxable income by HRA exemption, Section 80C investments (up to ₹1.5 lakh), NPS, home loan interest and so on. If the TDS line on your payslip looks wrong, cross-check using the tax computation your employer should provide under Form 12BB.
Total Deductions is the sum of all deductions.
Net Pay
Net Pay (or In-Hand Salary) = Gross Salary − Total Deductions. This is the amount credited to your bank account. For a full breakdown of how CTC maps to your in-hand figure, see our guide on CTC vs in-hand salary and job offer letters in India 2026.
A Sample Payslip Structure
| Component | Amount (₹) |
|---|---|
| EARNINGS | |
| Basic Salary | 25,000 |
| HRA | 10,000 |
| Special Allowance | 8,500 |
| Gross Salary | 43,500 |
| DEDUCTIONS | |
| Employee PF (12% of Basic) | 3,000 |
| Professional Tax | 200 |
| TDS | 1,200 |
| Total Deductions | 4,400 |
| Net Pay | 39,100 |
*Note: ESI not applicable here as gross exceeds ₹21,000.*
Minimum Wage Compliance on Your Payslip
Your gross salary must not fall below the applicable minimum wage for your state, skill category and sector. The 2026 minimum wages vary significantly — from around ₹8,000/month in some states to over ₹18,000 in Delhi and Maharashtra for skilled workers. Your payslip is the easiest way to verify this. If your gross pay is below the minimum wage, your employer is in violation of the Code on Wages — see our state-wise minimum wages guide for India 2026 for current figures.
Gratuity and Your Payslip
Gratuity does not appear as a deduction on your payslip — it is an employer liability, not a salary deduction. However, it may appear as a line in your CTC breakup. Gratuity is calculated on basic salary plus DA and is payable after five years of continuous service (or from Day 1 if you are on a fixed-term contract under the new Labour Codes). For the full formula and eligibility rules, see our gratuity guide for India 2026.
What the Law Says About Issuing Salary Slips
Under Section 50 of the Code on Wages 2019, every employer — including firms with only one employee — must maintain wage records and issue a wage slip each pay period. There is no minimum establishment size threshold for this obligation.
Digital payslips are fully legal. A password-protected PDF emailed to your official email address satisfies the requirement. A printed payslip handed over is equally valid.
Penalties for non-compliance. If an employer fails to maintain wage records or does not issue payslips, Section 54 of the Code on Wages provides for: – First offence: fine up to ₹50,000 – Repeat offence: fine up to ₹1,00,000 and/or imprisonment up to 3 months
What to Do If Your Employer Does Not Give You a Salary Slip
Step 1: Request in writing. Email HR or your manager requesting your payslips for the past three months. Keep the sent email. In many cases this resolves the issue immediately.
Step 2: File a complaint with the Labour Inspector. Every district has a Labour Inspector empowered under the Code on Wages to inspect wage registers and compel compliance. You can file a complaint in writing at the Labour Commissioner’s office for the district where you work.
Step 3: Use the SAMADHAN portal. The Ministry of Labour and Employment operates an online complaint portal at samadhan.labour.gov.in. You can register a complaint online, upload evidence (appointment letter, bank statements, emails), and track resolution with a reference number. There is no filing fee.
Documents to keep ready: appointment letter, bank statements showing salary credits, any written communication about your salary, and copies of any payslips you have already received.
Special Considerations for Women Employees
Women employees in India often use salary slips for a specific additional purpose: career re-entry after a career break or maternity leave. A complete salary slip history — showing your last drawn salary, PF number (UAN) and employer details — makes it easier to negotiate at a new employer, verify past employment, and prove continuity of contributions to EPF.
If you are returning to work after maternity leave, check that your payslip during maternity leave shows your full salary (not partial) as required under the Maternity Benefit Act 1961. Your employer cannot reduce your salary during the 26-week paid leave period.
For guidance on job search and salary negotiation after a career break, see our guide on salary negotiation for women in India 2026.
FAQ
Q: Can my employer give me a payslip in a different format each month? A: The Code on Wages does not prescribe a standard template, but the slip must show all mandatory components every month. The format can vary, but omitting PF, ESI or TDS deductions is non-compliant.
Q: My payslip shows a very low basic salary. Is that legal? A: Not if basic + DA is less than 50% of your total CTC. This rule came into force on 21 November 2025 under the Code on Wages. If your basic is below this threshold, the employer is non-compliant and you can raise it with HR or the Labour Inspector.
Q: Can I use a digital payslip for a home loan application? A: Yes. Password-protected PDF payslips emailed by your employer are accepted by all major banks and NBFCs in India. Bring three to six months of payslips as required by the lender.
Q: Is professional tax the same everywhere in India? A: No. PT is a state levy and only about half of Indian states impose it. Where it applies, the rate depends on your monthly salary slab. Karnataka charges ₹200/month for salaries above ₹15,000; Maharashtra charges ₹200/month above ₹10,000; some states charge less or nothing at all.
Q: My previous employer is not giving me old payslips. What can I do? A: The Code on Wages requires employers to retain wage records for at least three years. You can request payslips formally in writing and, if the employer refuses, file a complaint with the Labour Inspector or on the SAMADHAN portal (samadhan.labour.gov.in).
Q: Does a freelancer or gig worker get a salary slip? A: Traditional payslips apply to employees with a wage relationship. Freelancers operating as independent contractors typically receive invoices and TDS certificates (Form 16A) rather than salary slips. Gig platform workers may receive earnings summaries through the platform app.
The 4 new Labour Codes have directly changed how salary slips look — the 50% Basic Pay rule and revised PF contributions affect every employee. See the complete breakdown in New Labour Codes India 2026: what the 4 new laws mean for your salary, PF and leave.
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