Salary Slips in Small Firms: Are They Legally Required in Mumbai?

Hi, we are a software-based firm with 10 employees located in Mumbai. I would like to know if it is mandatory to issue salary slips to employees, and if yes, under what provision/law?

Hi, software companies fall under the Shops & Commercial Establishment Act. According to the regulations of Shops & Commercial Establishments, it is mandatory to issue payslips to employees.

Also, one must take care of the employees. Forget whether it is a mandate or not, the salary slips do come in handy when an employee applies for a loan or a credit card.

The Necessity of Providing Salary Slips

Nowadays, everybody is asking for salary slips for obtaining personal loans, vehicle loans, providing surety to others, housing loans, and acquiring consumer durable items on hire purchase, etc. It is a necessity to provide salary slips to employees as it is mandatory.

Regards,
D. Gurumurthy
LL. HR & IR Consultant
Hyderabad.

Dear Friends, we are a construction company with 20 employees located in Gurgaon. I would like to know if it is mandatory to issue salary slips to employees, and if yes, under which provision/law?

Thank you.
Regards

Wage Slip Requirements Under Various Rules

As per the Minimum Wages Rules, Contract Rules, and Factories Rules, a wage slip is mandatory. The wage slip should be issued at least one day prior to the disbursement of wages. This is important because employees need to know the wages earned and deductions made. If there are any changes or mistakes in the respective month's wage, employees should report them to the HR Department.

Under Minimum Wage Rules:

26. Form of registers and records.

(2) A wage slip in Form XI shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages.

(3) Every employer shall obtain the signature or thumb impression of every person employed on the register of wages and wage slip.

Under CLRA Rule of Wage Slip:

78. Master Roll, Wages Registers, Deduction Register, and Overtime Register.

(1)(a) Every contractor shall, in respect of each work on which he engages contractor labour, maintain a Muster Roll and a Register of Wages in Form XVI and Form XVII, respectively.

(b) Every contractor shall, where the wage period is one week or more, issue wage slips in Form XIX to the workmen at least a day prior to the disbursement of wages.

Regards,
Channiga
Bangalore

Switching Companies Without Official Documents

Please tell me if the company is not issuing an offer letter, joining letter, and salary slip, will that create a problem when switching to another company? Please suggest what to do in that situation.

Regards,
Arsh

Importance of Salary Slips in Software Firms

Salary slips or wage registers are mandatory as per the Shops & Establishment Act, Factory Act, Minimum Wage Act, etc. Since your company is in software, you can easily develop a payroll package instead of maintaining a manual wage register. Some of your employees may fall under the income tax bracket; for filing an I.T. return, a consultant will require their salary slip. Therefore, it is advisable to provide a salary slip.

Regards,
Saji