Salary Statement & slips

Salary Statements and Slips

Salary slip also known as a pay slip is provided to employees to record their monthly pay and allowances. It is a document that makes the employees aware of their incomes and deductions as it would differ from employee to employee. It is legally binding upon your employer to issue a salary slip as proof and statement of the employees earnings and deductions if any.

Importance of Salary Slip:

1) The salary slips act as evidence of employment.

2) It proves that the organization has permanently recruited an employee.

3) This is handy in negotiating with new employers for a better pay.

4) Salary slips aid to apply for loans in banks.

5) It is an authentic proof of income and used to file income tax returns.

6) It serves as a proof for PF and insurance deductions.