If you’re business owners, or the one who is working as an HRD, making a salary slip is something familiar. But for those who are new to it, may have no idea how to design a salary slip template. In your salary slip, it has to mention several components including the basic salary, allowance, the perquisites, and also the likes. The structure of the salary mentions every detail of the compensation, and also the specific details of the compensation’s components.
The Components of the Salary Slip
The formats of the salary slip may vary depending on the business and the employer. Yet, the components that need to be available are the deduction amount, the allowances, the net pay, gross pay, number of days your employees attend, total working days, the employee ID, the name of the employee, the name of the organization, and the code of it. Besides, it also has to mention the PF number, the ESI number, details of the employee, and also the stamp and signature of the employer.
The income and allowance of the salary slip will mention the basic salary and the allowances for the employees. Besides, it also has to contain allowances.
There are several forms of allowances, which include Conveyance Allowance or the travel allowance. Another one is HRA or House Rent Allowance which is usually up to 50% of the salary. Employers also offer Dearness Allowance, Medical Allowance, and also Performance Allowance.
When creating a salary slip, do not forget to give space for the income deductions. Some of the components including Tax Deducted at Source, the EPF or employee provident fund, professional tax, tax slab, and also other deductions that are defined by the state government. These are steps on how to design a salary slip template.
Acceptable Pay Slips
If you want to use your play slips for the home loan application, you have to provide two consecutive payslips. Just make sure that the payslips you have are acceptable by the lender. To make it approved, the payslips must meet the standard requirements.
Before applying for a home loan make sure that the slip is dated less than four weeks from the date of your application. The old payslips are not accepted. You also have to show the date range of your payday.
Acceptable Pay slip also mentions your name as the employee, the name of the employer, and also the YTD income.
Also, your payslips must mention the taxable income and also net income. The deductions are also shown includes high education debt, tax, superannuation contribution, and other debts that you pay directly from the income like salary packaging expenses. Some payslips may not show you your personal leave, annual leave, or long service leave that you have even though you’re working full time. If you experience this case, some lenders will ask you to have an employment letter that confirms that you’re employed full time, or that you already pay the tax income you earn.
The reason why banks ask you for two consecutive payslips is so that they can use the YTD or year to date income to see if your current income is consistent throughout the years. Consider this before you think about how to design a salary slip template.