Whenever salary day comes around, we often concentrate our attention towards the money we’re receiving for our services, yet we do not look at on our Salary Slips.
It’s an efficient way to manage our finances from monthly earnings. The salary slip contains very vital information that could be used to settle any future conflicts and other legal issues with the employer.
The Relevance of Salary Slips
A salary slip, also known as a payslip or a salary receipt in certain organisations, is provided to employees to brief them, their monthly pay and allowances. Salary slip or Pay Slip is a relevant legal document that every employee receives from their organisation HR departments or employers. It serves as a proof and detailed statement of your monthly earnings, allowances and deductions.
A salary slip can also be used for different purposes, such as an information document for a bank loan and mortgage to ensure banks that one is financially stable to pay it back. The credit limit also granted on basis of individual’s salary slip.
Keep in mind that a salary slip can be an important document for future references. In different countries, employees compute their respective taxes. This decides whether you’re expected to pay any sort of income and other taxes, along with the amount you will need to spend every year. More than that a salary slip also guarantees access many specific government-provided services like medical care.
It can also be a good to negotiate a proposed salary with your new employer. This will serve as proof of your previous monthly earnings to help decide how much they propose to pay you. Unfortunately, salary slips are used as basis for lawful cases as well. It helps court to decide how much alimony and compensation must be granted to other half of couple when facing divorce proceedings.
Softcopy or Hardcopy?
Nowadays salary slips often provided over mails or accessible through HR management tools in employee sections. Printed salary slips can be very useful especially when you need a physical copy as proof of your monthly earnings to your employer.
Digital salary slips are shared through email by the organization’s human resources department or finance department. Sometimes it may not seem as professional as the printed copies, many companies still issue them for fast and easy sharing.
E-salary slips can easily be stored for future reference as all information is on email. There are negligible chances of losing salary slips on email. However, make sure the issuing officer in charge has signed your digital salary slips before submitting them for lawful needs.
On the other hand, if your employer issues a manual or digital copy of the salary slip, both documents possess the same lawful status. Keep in mind that tampering or altering your salary slip can also become a criminal offense, especially when resolving a dispute about your current salary or wage.
How Do I Get One?
It is your lawful right to request and receive a pay slip from your current employer, whether you’re working for a private organization or a small firm. If the company you work for does not have an official pay slip to start with, then you can ask for something of the same importance. It can be a simple piece of paper signed by your employer indicating your monthly salary, allowances and possible deductions.
As far as it is signed by your employer, then the pay slip provided will be acceptable by any organization. Apart from the HR department, you can also get your pay slip from the accounting and administration department. The payroll service provider is responsible for managing your wages on an outward basis, as well as the bank for monthly earnings that go directly into your salary account.
Essential Components of a Salary Slip
Every month, or after a month for certain organizations and in different countries, salary slips are generated once the salary gets paid out by your employer.
As of now, you get an idea of how these payslips may be used for different purposes. To many people, the salary slip is a relevant piece of document when applying for a new credit card or loan from a bank.
Sometimes salary slips can be too complicated for some people to understand. The compounded terms and figures may like an indefinite puzzle you wouldn’t defy to solve. But grasping your salary slip a lot better can be beneficial for some sort of manner.
As one, it can help you decide wisely from provided offers when you are looking for a new job opportunity. This will also help you compute on tax liability by using the deductions briefed on your pay slip. And if you want to understand more about your earnings to secure better savings, then the salary slip will help you calculate what salary percentage is mandatory savings.
Information specified on a salary slip may vary by organization and as per country rhymes, here are some basic indicators listed for what proper salary slip will contain:
- Number of days or Man-hours
- Official organization holidays (including national holidays, cultural festivals, and the weekends)
- Basic Salary as per your package
- Housing and rental allowance (if any)
- Medical allowance
- Outstation allowance
- Overtime incentives or allowances
- Additional allowances (Extra pay for additional work)
- Tax reductions
- Social Security fund deductions
- Workplace accident cover deductions
- Health care insurance deductions
- Adjustment on loans and other advanced payments
Apart from those briefed above, a salary slip may also contain other relevant information such as the employee’s full name or legal identity, residential address, employee ID in the company, and payment related details.
The date on which the salary was credited must also be included on the salary slip. The employer can also mention the current leave balance and the total leaves provided on the slip for the employee’s sake.
Be sure to check that your salary slip contains all the significant information as well. Otherwise, this may be rejected by your future employer you are applying for.
Learning about what a salary slip is and the role it plays in an employee’s life can be of utter importance in several ways. Due to its level of relevance, every working person has the right to accept a salary slip from their respective organisations for their personal or professional use.
As an employer, it is company’s responsibility to provide well-detailed pay slips that contain key information for employees to be fully aware of their monthly earnings, and to avoid potential lawful disputes with former or current members of the company.