Is It Legal to Replace Salary Slips with SMS Notifications? Seeking Advice on Compliance

Dear Friends,

I would like your advice on whether providing a salary slip to employees is mandatory, and if so, under which provision. Is sending details by SMS sufficient or not? In my organization, we plan to provide details via SMS instead of salary slips. Are there any legal implications for this decision?

Regards,
Govil Nanda

Salary slip is a record of the earnings from the employer every month, and it helps in tax planning, housing loan applications, etc. Under the Shops and Establishment Act, the employer shall maintain a salary register where the details of the employees and the salary paid are recorded every month. To maintain secrecy for the salary paid to employees, the pay slip is introduced, and a copy of such slips kept in record with the employer serves the purpose of the salary register as well.

SV Krishnan.

Salary or wage slips are mandatory as per the Payment of Wages Act and Minimum Wages Central Rule 1950 - Rule 26(2), Form XI.

Thanks with Regards,

Kamlesh K