Understanding Payslips: What They Include and Why CTC Might Be Listed

Please let me know - What is the meaning of a payslip? What is the format of a payslip? Will CTC appear on a payslip? If yes, why? If no, why? Please answer...

Sruthi

Hi Sruthi,

A payslip is given monthly, with details of that particular month's earnings, gross earnings, deductions, total deductions, and the total net pay. This structure of a payslip helps us understand how much we have earned and how much has been deducted in each category (such as basic, HRA, LTA, medical, PF, ESI, IT, etc.) from our monthly income.

Regarding CTC (Cost to Company): it is an annual figure, so it won't be reflected in the payslip.

I hope this information is sufficient.

Regards,
Padmini

Dear Sruti,

A payslip is a tabular representation of all salary/wage/compensation details. Every employer is bound to distribute the payslip before the disbursement of salary or on the day of issuing salary. The payslip format may vary from employer to employer. It shows all deductions, taxes, etc. Finally, it shows the net salary (i.e., take-home salary) for the employee.

Thank you and goodbye.

I am a budding HR professional in an upcoming IT firm. My MD has given me a new responsibility to create payslips for three categories of employees:

1. One for an employee who is in the probation period and has a salary less than 10,000 per month.
2. One for an employee who is in the probation period and has a salary more than 10,000 per month.
3. Payslip for a permanent employee whose salary is 12,000 per month.

Kindly help me to generate these payslips.

As Padmini suggested, a payslip is just a tabular format of all earnings and deductions. Moreover, there is no standard structure for payslips; you can design your own payslips. If needed, I can email you a few samples.

Understanding CTC and Payslips

CTC is only the structure and won't be reflected in payslips. CTC is reflected in appointment letters and increment letters only.

Regards