Payslip Format India 2026 — Components, Legal Requirements & Free Template
A payslip (also called salary slip or wage slip) is a document issued by the employer to the employee detailing their salary components, deductions, and net pay for a specific pay period. In India, issuing payslips is a legal requirement under the Payment of Wages Act, and the format must include specific mandatory information.
Mandatory Payslip Components
Employee Information
Every payslip must include: employee name, employee ID/code, designation, department, date of joining, PAN number, UAN (Universal Account Number), ESI number (if applicable), bank account number (masked), and pay period.
Earnings (Gross Salary Components)
The earnings section breaks down the gross salary into components: Basic Salary (typically 40–50% of CTC), House Rent Allowance (HRA), Dearness Allowance (DA) if applicable, Special Allowance, Conveyance Allowance, Medical Allowance, Leave Travel Allowance (LTA), and any other fixed or variable components. Each component must be listed separately with its amount.
Deductions
All deductions must be clearly listed: Employee PF contribution (12% of basic + DA), Employee ESI contribution (0.75% of gross, if applicable), Professional Tax (state-wise), Income Tax (TDS), and any other deductions like loan recovery or voluntary PF. The total deductions must be clearly shown.
Net Pay
The net pay (take-home salary) is calculated as Gross Earnings minus Total Deductions. This is the amount credited to the employee’s bank account. Both the numerical amount and amount in words should be shown.
Employer Contribution Section
While not deducted from the employee’s salary, the payslip should also show employer contributions: Employer PF contribution (12% of basic + DA, split into EPF and EPS), Employer ESI contribution (3.25% of gross), and Gratuity provision (4.81% of basic + DA). This gives employees a complete picture of their total cost to company.
Legal Requirements
Under the Payment of Wages Act and the new Code on Wages, employers must issue payslips to all employees within the prescribed time after salary payment. The payslip must be accurate, detailed, and provided in a format the employee can retain (paper or electronic). Employers who fail to provide payslips can face penalties.
How INDPayroll Generates Payslips
INDPayroll generates professional, compliant payslips automatically for every pay cycle. Payslips include all mandatory components, are available in PDF format, and can be accessed by employees through the self-service portal 24/7. Employers can customize the payslip format with company logo, additional fields, and language preferences (English, Hindi, and regional languages). Start your free trial to generate professional payslips for your entire team.
