Last Updated on October 13, 2026 by Abhijit Divekar
A payslip is the one HR document every employee reads every month. When it is clear, people trust their pay. When it is wrong, you get questions on payday and, sometimes, problems with PF, ESIC or inspections.
With the new PF wage ceiling changing deductions for many employees this year, now is a good time to check your payslip format. Here is the payslip format in India every small business should follow, and the mistakes to avoid.
Why payslips matter
- Proof of payment: what you paid and what you deducted.
- Compliance record: labour laws and the new Labour Codes expect employers to issue wage slips and keep wage records.
- Needed by employees: for loans, rent agreements, visas and tax returns.
- Builds trust: clear pay means fewer questions on payday.
Payslip format in India: what it must show
1. Employer and employee details
- Company name and address
- Employee name, ID and designation
- PAN, PF UAN and ESIC number, where they apply
2. Pay period and attendance
- Month and year
- Working days, days paid and loss of pay days
3. Earnings
- Basic pay and DA, if any
- HRA and other allowances
- Overtime, incentives, bonus or arrears for the month
- Gross earnings
4. Deductions
- Employee PF and ESIC, where they apply
- Professional tax, as per your state
- TDS (income tax)
- Labour welfare fund, salary advance or loan recovery, if any
- Total deductions
5. Net pay
- Net pay in figures and in words
- Payment mode and date
Tip: showing the employer PF and ESIC contribution is optional, but it helps employees understand their full CTC. You can plan salary structures with our free CTC calculator.
What changes with the new PF wage ceiling
With the PF wage ceiling now at ₹25,000 a month, payslips may show:
- A higher employee PF deduction for staff above the old limit
- Lower take home pay, if CTC stays the same
- New PF lines for employees who were not covered earlier
Update your payroll software or spreadsheet, and tell employees before payday if their net pay will change. For full details, read our EPF wage ceiling founder’s guide.
7 common payslip mistakes
- Old PF ceiling still in the payroll formula
- Missing UAN or ESIC number
- Wrong loss of pay days
- Wrong professional tax slab for the state
- Allowances that change every month without explanation
- Sending pay details only on WhatsApp instead of a proper payslip
- Not keeping a copy of payslips and wage records
Paper or digital?
- Digital payslips by email or an HR app are fine, as long as employees can access and download them
- Use a password protected PDF, as payslips contain personal data
- Store copies securely for inspections and disputes
Frequently asked questions
Is it mandatory to give payslips in India?
Yes. Employers are expected to issue wage slips every month and keep wage records, even in very small teams.
Can payslips be digital?
Yes, as long as employees can access and download them easily.
What should I change after the PF ceiling change?
Use the new ceiling in payroll, add PF for newly covered staff, and explain any change in take home pay before payday.
Let HRTailor handle payroll and payslips for you
HRTailor.com runs payroll for small businesses across India:
- Accurate payslips every month
- PF, ESIC and professional tax filed on time
- Simple answers when your team has questions
Related resources
- EPF Wage Ceiling Is Now ₹25,000: A Founder’s Guide to What Changes
- Small Business Payroll India: How to Run Payroll for Growing Teams
- Free CTC Calculator and Salary Structure Template for India
- Payroll Compliance Audit India: A Simple Checklist for Employers
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