How to Read a Salary Slip in India: Every Line Explained

Last updated: 8 October 2026 · By the Asuraa Team

Quick answer: A salary slip shows your earnings (basic, HRA, allowances), your deductions (employee PF, professional tax where applicable, and income tax deducted at source) and the net pay credited to your bank. According to EPFO, the employee PF deduction is 12% of basic plus DA. The employer's PF share usually does not appear as a deduction, so check it in your EPF passbook.

Key takeaways

• An Indian salary slip has three parts: identification details, earnings and deductions, ending with net pay credited to your bank.
• According to EPFO, the employee PF deduction is 12% of basic wages plus dearness allowance, or Rs 1,800 a month when calculated on the Rs 15,000 ceiling.
• The employer's 12% PF contribution is paid on top of salary, with 8.33% going to the pension scheme, and can be verified in the EPF passbook.
• Under the new tax regime, taxable income up to Rs 12 lakh attracts no tax after the rebate, so many freshers see zero TDS.
• The government says the labour codes in force since 21 November 2025 require IT and ITES salaries to be released by the 7th of every month.

A salary slip (payslip) is the monthly statement your employer issues showing what you earned, what was deducted and what was finally credited to your bank account. Reading it properly lets you catch errors early, confirm that PF and tax are being handled correctly, and use it as proof of income for loans, rental agreements and visa applications.

This guide explains each part of a typical Indian payslip. Layouts differ between companies, but the logic is the same everywhere.

What does a salary slip in India contain?

A salary slip has three parts: employee and company details, earnings, and deductions, ending with net pay. Here is a typical layout with illustrative figures for a fresher:

Illustrative only. The PF figure assumes 12% of full basic; your employer may calculate it differently.

What do the header details on a payslip mean?

The header identifies you, the pay period and the accounts your salary and benefits are linked to. Check these fields every month:

• Employee name, ID, designation and department
• Pay period and the number of paid days or loss-of-pay (LOP) days
• PAN, which links your TDS to your tax records
• UAN (Universal Account Number) for your PF
• Bank account where net pay is credited
• Date of joining, which affects your first month's pro-rated pay

If PAN or UAN is missing or wrong, ask HR to fix it immediately. A wrong PAN means TDS credit may not show against your name, and a wrong UAN means PF may go into the wrong account.

What are the earnings on a salary slip?

Earnings are every component paid to you before deductions, and together they make up gross salary.

• Basic salary: the core of your pay. PF and gratuity are calculated on it, so it matters more than its size suggests.
• House Rent Allowance (HRA): paid towards rent. It is partly tax-exempt only under the old tax regime if you pay rent; the Income Tax Department lists the HRA exemption among benefits not available in the new regime.
• Special allowance or flexible pay: a balancing figure that makes up the rest of fixed pay. Fully taxable.
• Conveyance, medical, meal or telephone allowances: names vary; tax treatment depends on the regime and company policy.
• Leave Travel Allowance (LTA): usually claimed against travel and relevant only in the old regime.
• Bonus, incentives, overtime or arrears: appear only in months when they are paid.

What are the deductions on a salary slip?

Deductions are the amounts subtracted from gross salary before it is credited, and for most freshers there are three main ones.

1. Employee Provident Fund (EPF): According to EPFO, employees contribute 12% of basic wages plus dearness allowance. If your employer calculates PF on the Rs 15,000 statutory ceiling, this is Rs 1,800 a month.
2. Professional tax (PT): a tax levied by certain state governments on employment. Whether it applies, and how much, depends on the state where you work, so the amount differs between, say, Bengaluru and Delhi.
3. Income tax (TDS): your employer's monthly deduction towards your estimated annual income tax.

You may also see employee contributions to ESI (for lower-salaried employees), voluntary PF, group insurance top-ups, loan recoveries or canteen charges. Ask HR about any line you do not recognise.

Why is the employer's PF not shown as a deduction?

The employer's PF is paid on top of your salary, not out of it, so it usually does not appear among deductions. EPFO says the employer also contributes 12%, of which 8.33% goes to the Employees' Pension Scheme and 3.67% to your EPF account.

Some payslips show the employer contribution as an information line. Either way, the reliable check is your EPF passbook, which you can download from the EPFO Member Portal after activating your UAN. Compare the passbook with your payslips every few months to confirm deposits are arriving. Our guide to PF and gratuity for freshers explains the full split.

How is TDS on your salary slip calculated?

Your employer estimates your full-year taxable salary under the tax regime you chose, calculates the annual tax and deducts it in monthly portions. Under the new regime, which is the default, a rebate removes tax entirely when taxable income is Rs 12 lakh or less (Income Tax Department). Many freshers will therefore see a TDS line of zero.

If you chose the old regime, the Income Tax Department explains that you submit Form 12BB to your employer with evidence for claims such as HRA and LTC, so the employer can compute TDS (Income Tax Department). Missing proofs often cause a sudden jump in TDS in the last quarter of the financial year.

At year end, your employer issues Form 16, the certificate of tax deducted at source on salary. TDS credited against your PAN can also be checked in Form 26AS and the Annual Information Statement on the income tax portal (Income Tax Department). Our guide to the new vs old tax regime for freshers helps you pick the right regime.

How do you check whether your salary slip is correct?

Run a short monthly check that takes five minutes:

1. Paid days: confirm working days and any loss-of-pay match your attendance and approved leave.
2. Earnings: compare each component with the annual breakup in your offer or appointment letter, divided by 12.
3. PF: check it is 12% of basic, or Rs 1,800 if capped, and matches your EPF passbook.
4. Professional tax: confirm it matches your state of work, not your home state.
5. TDS: confirm it reflects the regime you chose and any declarations you submitted.
6. Net pay: match it with the amount credited to your bank account.
7. Identifiers: PAN, UAN and bank details are correct.

Keep every payslip as a PDF. Banks, landlords, background verification agencies and new employers often ask for the last three to six months. Our guide on background verification in India explains what is checked.

What do most guides on reading a salary slip get wrong?

Most guides treat gross salary as your CTC divided by 12, but a payslip only shows what is paid monthly. Employer PF, gratuity provision, insurance premiums and annual variable pay are part of CTC yet usually absent from the monthly slip. That is why the gross on your payslip is lower than your CTC suggests. Our guide to CTC vs in-hand salary walks through the full conversion.

Another common mistake is ignoring salary timing. Under the labour codes that took effect on 21 November 2025, the government says salaries for IT and ITES workers must be released by the 7th of every month (PIB). If your salary is regularly late, raise it with HR in writing.

What should you do if there is a mistake on your payslip?

Raise it with HR or payroll in writing, attaching the payslip and the document that shows the correct figure. A short email works:

• the month and line item in question
• what you expected and why (offer letter, attendance record, declaration submitted)
• a request for correction in the next payroll cycle, with arrears if money is owed

Most errors, such as wrong LOP days, missed allowances or an incorrect tax regime, are fixed in the next month's payroll as arrears. If PF deposits are missing from your passbook for several months, escalate it promptly, since this affects your long-term savings.

FAQ

What is the difference between gross salary and net salary on a payslip?

Gross salary is the total of all earnings for the month, such as basic, HRA and allowances, before any deductions. Net salary is what remains after deductions like employee PF, professional tax and income tax deducted at source, and it is the amount credited to your bank account. Both are smaller than CTC divided by 12, because CTC also includes employer costs.

How much PF is deducted from salary every month?

EPFO sets the employee contribution at 12% of basic wages plus dearness allowance. If your employer calculates PF on the Rs 15,000 statutory ceiling, the monthly deduction is Rs 1,800. If it uses your full basic pay, a Rs 25,000 basic means Rs 3,000. Check your offer letter or HR policy to see which method applies.

Why is there no TDS on my salary slip?

Most likely your estimated taxable income is within the new regime's rebate limit. The Income Tax Department lists a rebate that removes tax entirely when taxable income is Rs 12 lakh or less, and salaried people also get a Rs 75,000 standard deduction. If you have other income, such as interest, you may still owe tax when filing your return.

Why does my salary slip not show the employer PF contribution?

Because the employer's contribution is paid on top of your salary rather than deducted from it. It is part of your CTC but not your monthly pay. EPFO says the employer contributes 12%, with 8.33% going to the pension scheme. You can confirm the deposits by downloading your EPF passbook after activating your UAN.

What is professional tax on a salary slip?

Professional tax is a tax some state governments levy on people earning from employment, deducted by the employer and paid to the state. Whether it applies and how much you pay depends on the state where you work, and some states do not levy it. Check that the deduction matches your work location rather than your home state.

How many months of salary slips do I need for a new job or loan?

Requirements vary, but banks, landlords and new employers commonly ask for the last three to six months of payslips as proof of income or employment. Save each month's slip as a PDF, along with your Form 16 every year, so you can respond quickly during background verification or a loan application.

Final thoughts

A payslip takes five minutes a month to check, and doing so catches PF, tax and attendance errors before they pile up. Keep every slip, compare it with your EPF passbook, and question anything that does not match your offer. If you are planning your next salary step, the Asuraa career path planner can help you map the skills that lead there.