Payslips
A payslip is the monthly statement each employee gets: what they earned, what was deducted, and what reached their bank.
Generating and publishing payslips
Payslips are created when you compute a payroll run — every employee gets one automatically. See running payroll.
Once the run is approved and disbursed, publish the payslips so employees can see them. Each person then finds their payslip in the employee portal under My Payslips, and can download a PDF.
Publish payslips only after the run is disbursed, so employees see the final, paid figures — not a draft that might still change.
How to read a payslip
A payslip has two sides — what you earned, and what was taken off — and a net figure at the bottom.
Earnings — what you earned
| Line | What it is |
|---|---|
| Basic | The core of the salary. |
| House Rent Allowance (HRA) | The rent-support part. |
| Special Allowance | The flexible, fully taxable part. |
| Other allowances | Any extra allowances configured for the employee. |
| Overtime (N hrs) | Extra pay for hours worked beyond the shift, if the employee earns it. When overtime needs approval, only the approved hours appear here. |
| Arrears | Back-pay from a raise dated earlier, shown as its own lines. |
| Reimbursements / Bonus | One-off amounts paid this month. |
| Total earnings | Everything above, added up. |
Deductions — what was taken off
| Line | What it is |
|---|---|
| Provident Fund (PF) | The employee's retirement-savings share. |
| ESI | Health-insurance share, if the employee is covered. |
| Professional Tax (PT) | A small state tax on salary, where it applies. |
| Income tax (TDS) | Tax deducted at source, based on the employee's declarations. |
| Loan / advance recovery | This month's instalment on any staff loan. |
| Late deduction (N days) | A pay cut for late arrivals beyond the monthly free count, if you deduct for late marks. |
| Other deductions | Recurring items like canteen or transport. |
| Total deductions | Everything above, added up. |
Loss of Pay
If the employee had unpaid days that month, their earnings are reduced for those days. This shows as a Loss of Pay reduction, and it's applied before PF, ESI, and tax are calculated — so those are worked out on the reduced amount.
Late deduction vs Loss of Pay
A Late deduction is different from Loss of Pay. It's charged as its own line after PF, ESI, and tax — so those are still worked out on the employee's full salary. The late penalty only reduces the final take-home. The employee sees exactly how much was cut and for how many days, rather than it quietly shrinking their earnings.
Net pay
Net pay = total earnings − total deductions. This is what lands in the bank.
A payslip may also list employer contributions — the company's PF and gratuity — for the employee's information. These are the company's cost, not deducted from the employee.
What's next
- Understand the full monthly cycle: running payroll
- Pay the salaries: bank file
- What employees see: employee guide to payslips and salary