Salary slip explained: how do you read a salary slip in India?
Salary slip explained under Indian central rules as of 31 October 2026.
A salary slip lists what you earned (basic pay, allowances, any variable pay), what was deducted (such as your PF contribution, professional tax and income-tax TDS) and the net amount credited to your bank. The Ministry of Labour's handbook says employers must issue wage slips in the prescribed form on or before payment of wages.
At a glance
- Net pay = total earnings minus deductions. It is smaller than your monthly CTC share.
- Employer contributions such as employer PF and gratuity are part of CTC but may not appear as money you receive.
- Check the number of paid days, leave balance and deductions every month.
- Ask HR in writing if something looks wrong.
What does a typical slip contain?
| Section | Typical items | Notes |
|---|---|---|
| Employee details | Name, employee ID, designation, PAN, bank, UAN | Check the spelling and numbers |
| Earnings | Basic, HRA, special allowance, other allowances, variable pay | Defined in your appointment letter |
| Deductions | Employee PF, professional tax, TDS, other recoveries | Statutory and company deductions |
| Employer contribution (sometimes shown) | Employer PF, gratuity provision | Part of CTC, not paid to you monthly |
| Net pay | Amount credited | Should match your bank credit |
| Attendance | Paid days, loss-of-pay days, leave balance | Check against your records |
How does the slip link to CTC?
CTC (cost to company) is the yearly employer cost. Divide by twelve and you get a monthly CTC share, but the slip shows earnings and deductions, not employer-only items. See the full walkthrough in CTC vs in-hand salary.
How are wages defined?
Under the Labour Codes, "wages" means basic pay, dearness allowance and retaining allowance, with a rule that allowances above 50% of total remuneration are added back. The Ministry's FAQs say the definition applies from 21 November 2025. Read the 50% wage rule to see why your basic pay share can matter for PF and gratuity.
When should wages be paid?
The handbook states that for a monthly wage period, wages must be paid before the expiry of the seventh day of the next month, and that when an employee leaves, due wages must be paid within two working days. If your employer is late, raise it in writing with HR first.
What should you check every month?
- Paid days match your attendance.
- Earnings match the structure in your offer or appointment letter.
- Deductions are explained. PF deduction should match the rate in your PF details; see PF and gratuity explained.
- TDS looks right for your tax declaration.
- Net pay equals the bank credit.
What if something is wrong?
Email HR or payroll with the month, the line, what you expected and the document that supports it. Keep the reply. If the issue is not resolved, check your company's grievance process, and the labour authority's process for your state.
Frequently asked questions
Is a salary slip mandatory? The Ministry's handbook says employers must issue wage slips in the prescribed form. Ask for yours if you do not receive one.
Why is net pay lower than CTC divided by twelve? CTC includes employer-side items and deductions reduce what you receive.
Why did my TDS change? It depends on your tax regime choice and declarations. Ask payroll for the working.
Can I use slips for a loan or visa? Lenders and embassies often ask for recent slips. Keep copies.
Next step: compare your last slip with your offer letter.
Related guides
Sources
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes: https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf (accessed 31 October 2026)
- Ministry of Labour and Employment, Additional FAQs on Labour Codes (16 March 2026): https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf (accessed 31 October 2026)
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.