A salary slip or pay slip is a form of a written document that shows the total salary of an employee that he or she earned in a month. Every salaried individual gets his or her payslip right after he/she receives the monthly salary. It may seem like a small piece of paper but it usually comes in handy for a number of purposes. While some use it for the approval of a loan, others use it as proof while they seek a new job.
Pay slip has numerous advantages that we will talk about in this blog. If you do not have a clear understanding of this document, you are certainly at the right place now. Let’s dive in and learn about salary slips.
Usage
Every person out there wishes to work just to earn a living. Let’s face it, money is one of the most important elements in today's world. We all need money to meet our day-to-day requirements.
In times like now, people can even face a financial crisis or they can also require extra money to purchase a home or a vehicle. In such a scenario, an individual turns to banks or any financial institution to apply for a loan. Now, to get this loan approved and to acquire the total amount, an individual is asked to submit several documents to the bank. Now, a salary slip is one of the most important documents to avail a loan.
Normally, the financial institutions ask the applicant to show only his or her payslips. That means they treat the pay slip as proof of the applicant's financial stability.
A pay slip also helps an applicant to apply for a big amount of money. In fact, even the credit limit of a person depends on his or her pay slip.
Format
For those who do not know, a salary slip is also considered a crucial legal document. The Law of the state has given a particular format of the payslips. Taking the same format into consideration, employers should follow the format while issuing a payslip to their workforce.
Several details are compulsory for issuing a pay slip. While it is the duty of employers and HRs to include all those details, it is also the responsibility of employees to check and ensure about such details. Not many will know that there are various banks and financial institutions in India that reject the salary slip that does not have all the necessary information and proper format.
Must-Have Details
The name of the employee as well as the employer should be correctly written in the salary slip.
The permanent address of the individual should also be clearly written on the pay slip.
The date on which the payroll was due should also be included on a salary slip. Likewise, HR managers should include a host of other details such as the deductions, net salary, and gross salary in it. HR managers can even mention the leave balance as well as the total leaves granted on the payslip of the person.
Today, preparing salary slips is no longer a big deal. Technologies like HR software allows HR professionals to prepare salary slips for every employee in just a few clicks. Besides, employees can also download and print the same on their own. So, gone are the days when HRs spent hours, even days to prepare pay slips for employees. Now, all a company needs to do is invest in the right software, it will take care of the preparation and generation of pay slips.
That is it, we have come to the end.
These are some interesting facts about salary slips. We hope now you know why your pay slip is acutely important for you.
Lastly, try to not lose it. Still, if you lose your salary slip by any chance, do not hesitate to ask your organization to provide a duplicate payslip.
