What a payslip should show
- Company name and address, and the month the pay is for.
- Employee name, code, designation and department, and UAN and PAN where applicable.
- Days paid out of the days in the month.
- Each earning: basic and DA, HRA, allowances, overtime and arrears.
- Each deduction: PF, ESI, professional tax, TDS and any loan or advance recovery.
- Gross earnings, total deductions and net pay, with net pay in words.
How pro-rating works
When an employee is paid for fewer days than the month has, for example after unpaid leave or joining mid-month, each fixed earning is reduced in the same proportion:
Earned amount = monthly amount × days paid ÷ days in the month
Basic of ₹10,000 with 26 of 30 days paid gives ₹8,667. PF is then worked out on the earned basic, not the full-month figure. Employers differ on whether they divide by calendar days, 26 or 30; use your company's rule.
Worked example
With the default figures, a full month paid: gross earnings are ₹18,700 (basic ₹10,000, HRA ₹4,000, special allowance ₹3,500, overtime ₹1,200). PF is 12% of ₹10,000 = ₹1,200. Gross is under ₹21,000, so ESI applies at 0.75% = ₹140.25, rounded up to ₹141. With ₹200 professional tax, total deductions are ₹1,541 and net pay is ₹17,159.
For a whole team, payroll software is faster and safer than one slip at a time. See our guide to the payroll management system.