A payslip format explained line by line: what each earning and deduction means, CTC vs gross vs net, how to check your pay slip, and a sample you can edit.
Payslip format, line by line
| Component | Type | What it is |
|---|---|---|
| Basic salary | Earning | The fixed core of pay. Many other items (PF, HRA, gratuity) are worked out from Basic, so it is set with care. |
| House rent allowance (HRA) | Earning | Paid towards rent. Under the old tax regime an employee who pays rent may claim part of it as exempt with rent receipts. |
| Conveyance, medical, special allowance | Earning | Fixed allowances that make up the rest of gross pay. Names vary by employer. |
| Overtime, bonus, incentive | Earning | Variable pay for the month. |
| Provident fund (PF), employee share | Deduction | Retirement saving deducted under the EPF scheme where it applies. Enter the figure from your payroll. |
| ESI, employee share | Deduction | Health insurance contribution for employees covered by ESI. Enter the figure from your payroll. |
| Professional tax | Deduction | A state tax on employment, only in states that levy it. Amount depends on the state slab. |
| Income tax (TDS) | Deduction | Tax deducted at source from salary based on the employee declarations and regime. |
| Loan or advance recovery | Deduction | Instalment of any salary advance given. |
| Net pay | Result | Gross earnings minus total deductions. This is what reaches the bank account. |
CTC, gross and net pay
| Term | Meaning | Example |
|---|---|---|
| CTC | Total yearly cost to the employer, including employer PF and benefits | Shown in the offer letter |
| Gross salary | Monthly earnings before deductions | 37,500.00 |
| Total deductions | PF, professional tax, TDS and recoveries | 2,650.00 |
| Net pay | Gross minus deductions, paid to the bank | 34,850.00 |
Payslip sample
SALARY SLIP FOR OCTOBER 2026
Aarav Electricals Pvt Ltd
14, Sunrise Complex, CG Road, Ahmedabad 380009
| Employee name | Priya Sharma | Employee ID | AE-0142 |
| Designation | Accounts Executive | Department | Finance |
| Date of joining | 12 Jun 2023 | PAN | ABCPS1234K |
| UAN | 100000000000 | Bank A/c | XXXXXX5678 |
Days in month: 31 Paid days: 30
| Earnings | Amount | Deductions | Amount |
|---|---|---|---|
| Basic salary | 22,000.00 | Provident fund | 1,800.00 |
| House rent allowance | 8,800.00 | Professional tax | 200.00 |
| Conveyance allowance | 1,600.00 | Income tax (TDS) | 650.00 |
| Special allowance | 5,100.00 | ||
| Gross earnings | 37,500.00 | Total deductions | 2,650.00 |
Net pay: ₹34,850.00
Net pay in words: Rupees Thirty Four Thousand Eight Hundred Fifty Only
Authorised signatory
How to check your payslip
- Paid days. Match against your attendance and leave.
- Earnings. Same as your salary structure, adjusted for loss of pay.
- PF. Check the amount against your PF passbook.
- TDS. Matches your Form 16 or the tax statement for the year.
- Net pay. Matches the bank credit.
Reading a payslip: a worked example
Priya earns Basic 22,000, HRA 8,800, conveyance 1,600 and special allowance 5,100: gross 37,500. Deductions are PF 1,800, professional tax 200 and TDS 650: total 2,650. Net pay is 37,500 minus 2,650 = 34,850, which should match the credit in her bank account on pay day.
Payslip vs salary certificate vs Form 16
| Document | Covers | Issued by | Used for |
|---|---|---|---|
| Payslip | One month | Employer payroll | Loans, monthly proof |
| Salary certificate | Current salary on a date | Employer HR on letterhead | Visa, rental, bank |
| Form 16 | Full financial year TDS | Employer as deductor | Income tax return |
Red flags on a payslip
- Net pay does not match the bank credit.
- PF deducted but missing in the PF passbook.
- TDS deducted but not visible in your annual tax statement.
- Paid days lower than your attendance record.
- Components change without a revision letter.
Frequently asked questions
Why do lenders ask for 3 months of payslips?
To confirm regular income. They usually match the slips to bank statements.
Is HRA always tax free?
No. Under the old tax regime part of HRA may be exempt if you pay rent and meet the conditions. HRA exemption is not available in the new tax regime.
Checked and updated 14 Oct 2026. Independent template site; not tax or legal advice.