How Should We Reflect Voucher Payments in Employee Payslips? Seeking Guidance on Salary Details

In my organization, a new employee is joining as a driver. The issue at hand is that his salary is Rs. 10K per month, and our Head of Department (HOD) has advised giving Rs. 1,000 per month, to be paid in vouchers. Can we show 11K per month in the payslip? I have asked my HOD, and he mentioned it is not necessary. Should we proceed to show the same, or do we need to reflect it in the payslip separately?

Please guide me on this matter.

Thank you.

In this case, you should treat his salary as ₹10,000/- and the remaining amount as other expenses. Do not treat his salary as ₹11,000/-.

Amount can be paid over and above the salary. However, check with your HOD whether this is a part of CTC or not. Also, collect the offer letter and necessary documents, and try to file all documents regarding payment orders. If the HOD has instructed to pay the newly appointed driver Rs. 1000 without any document/mail communication, you need to collect and keep it for reference. During a financial audit, the auditor may request all these papers.

With the consultation of the HOD, only by mail or in writing, I am preparing the appointment letter and filing it. The issue is that we are mentioning Rs. 10,000/- as the salary in the Appointment Letter. We are not showing the remaining 1,000 Rupees anywhere except in the voucher generated by the accounts department. Instead of preparing any CTC structures, we are only following Gross Structures, and CTC is added only for PF.

Question on Gross Salary Representation

My question is, in the appointment letter, where we show the Gross salary as 10,000/- per month, can't we show the remaining 1,000/- per month in the Appointment Letter rather than in the Voucher so that it will be accurate for future reference? If we can show it in Gross Salary, in which component can we show it? Please guide me.

Regards

You need to show the cash amount of Rs. 1000 paid through a voucher in your cash book. If it is not a part of your salary as per the offer of appointment, it has to be shown as an expenditure reimbursement. It is better that you should get the offer of appointment revised or amended to Rs. 11,000 per month instead of Rs. 10,000 per month to avoid any audit objections.

Regards,
Mahavir Mittal

You can show Rs. 1000/- per month as conveyance reimbursement, travel reimbursement, lunch reimbursement, petrol reimbursement, mobile reimbursement, etc. You can choose to pay it under one category or split it into multiple expenses. Alternatively, you can display it every month as different expenses.

Regards,
Rathna

Hi Rathna, you are right that the amount can be shown in reimbursement (mobile, travel, food convenience, etc.), but can we also include it in the appointment letter? If yes, how can we do that?

Thank you.