It also helps them negotiate salary with new employers or for new roles.
It is an important document to avail loans, credit, mortgage and other borrowings from banks and financial institutions.Įmployees can compare offers from new employers based on their previous salary slips. Salary slips provide lenders with assurance that their lendings will be repaid.
The salary slip gives employees access to various free or subsidised facilities provided by the government such as medical care, subsidised food grains, etc. It helps to prepare the Income Tax Returns (ITR) and determine how much tax is to be paid or how much refund is to be claimed by the employee for the year. The salary slip forms the basis for income tax calculation. However, the basic template for a salary slip includes the following: The format of salary slips differs for different companies.
