Step by Step Guide
How to Create a Salary Slip
in India — 2026 Guide
A complete step-by-step guide to making a salary slip for any Indian employee — with correct PF, ESIC, HRA calculations and a free tool to generate it in 30 seconds.
Fastest Method — Use Our Free Online Generator
Skip all manual steps. Enter CTC and employee details → get professional PDF in 30 seconds.
3 Ways to Create a Salary Slip
| Method | Time Needed | Skill Required | Best For |
|---|---|---|---|
| Online Generator (PILOTEQ) | 30 seconds | None | Any employer — fastest & error-free |
| Excel Template | 5–10 minutes | Basic Excel | Bulk slips for multiple employees |
| Manual (Word/Design) | 30–60 minutes | Formatting skills | Custom branding requirements |
Step-by-Step: Create Salary Slip Manually
👤 Gather Employee Information
Collect all employee details before you start. You will need these for every salary slip:
- ›Full Name (as in employment records)
- ›Employee ID (assigned by company)
- ›Designation and Department
- ›Date of Joining
- ›PAN Number (mandatory for TDS compliance)
- ›Bank Name and Account Number
💡 Keep a master employee register in Excel or HR software to avoid re-entering details each month.
💼 Get the Annual CTC
CTC (Cost to Company) is the total annual cost to the employer. Find it in:
- ›Employee offer letter — usually stated as annual CTC
- ›HR software or payroll records
- ›Appointment letter or salary revision letter
Monthly CTC = Annual CTC ÷ 12💡 Monthly CTC = Annual CTC ÷ 12. This is the base for all calculations.
📈 Calculate Earnings
Break down the monthly CTC into salary components:
- ›Basic Salary = Monthly CTC × 50%
- ›HRA = Basic × 50% (metro) or Basic × 40% (non-metro)
- ›Medical Allowance = ₹1,250 (fixed)
- ›Conveyance Allowance = ₹1,600 (fixed)
- ›Special Allowance = Monthly CTC − Basic − HRA − Medical − Conveyance − Employer PF − Gratuity provision
Gross = Basic + HRA + Medical + Conveyance + Special💡 Gross Salary = Basic + HRA + Medical + Conveyance + Special Allowance.
➖ Calculate Deductions
Calculate statutory deductions from the employee side:
- ›Employee PF = MIN(Basic, ₹25,000) × 12% → Max ₹3,000/month
- ›ESIC = Gross × 0.75% → Only if Gross ≤ ₹21,000/month
- ›Professional Tax = as per your state slab (usually ₹200/month)
- ›TDS = as per employee's annual tax liability (if applicable)
Total Deductions = PF + ESIC + PT + TDS⚠️ Never deduct ESIC if the employee's gross salary exceeds ₹21,000/month.
✅ Calculate Net Pay
Net take-home pay is the final amount credited to the employee's bank account:
- ›Net Pay = Gross Salary − Total Deductions
- ›Write the net pay in words (e.g., "Forty Eight Thousand Only")
- ›Verify the calculation before finalising
Net Pay = Gross Salary − Total Deductions💡 Always cross-check: Gross − Deductions = Net. A ₹1 mismatch will cause issues at audit.
📄 Generate & Share the Slip
Once calculated, create the formatted salary slip document:
- ›Use our free online generator at piloteq.in/micro-tools/salary-slip
- ›Or use the Excel template (downloads from our template page)
- ›Print as PDF — File → Print → Save as PDF → enable Background Graphics
- ›Email or WhatsApp the PDF to the employee by the 5th of each month
💡 Digital salary slips are legally valid in India. No physical signature required.
Legal Requirements for Salary Slips in India
- › Employers must issue salary slips under the Payment of Wages Act 1936 and Shops & Establishments Act
- › Salary slip must show all deductions separately — no blanket deduction is allowed
- › PF contributions must be deposited with EPFO by the 15th of following month
- › ESIC contributions must be deposited by the 15th of following month
- › Maintain payroll records for minimum 5 years for audit compliance
Skip all manual steps — generate in 30 seconds
Free, professional, PDF-ready. No login. No Excel needed.
Frequently Asked Questions
How to make a salary slip for an employee in India?▼
Collect employee details (name, ID, PAN). Get annual CTC, divide by 12. Calculate Basic (50%), HRA (50% of Basic), Medical (₹1,250), Conveyance (₹1,600), Special (balance). Deduct PF (12%), ESIC (0.75% if ≤₹21K), PT. Net = Gross − Deductions. Use piloteq.in/micro-tools/salary-slip to generate a formatted PDF in 30 seconds.
Can I create a salary slip online for free?▼
Yes. PILOTEQ's free online salary slip generator at piloteq.in/micro-tools/salary-slip lets you create a professional salary slip in 30 seconds. Enter CTC and employee details, get a print-ready PDF — no login, no subscription, completely free.
Is it legal to create salary slip online in India?▼
Yes. Digital salary slips are completely legal in India. The Payment of Wages Act does not specify physical format. Computer-generated payslips are accepted for loan applications, visa processing, and income tax filing.
How to calculate net salary from CTC in India?▼
Monthly Net Salary = (Annual CTC ÷ 12) − PF (12% of Basic, max ₹3,000) − ESIC (0.75% of Gross if ≤₹21,000) − Professional Tax (state slab). Example: ₹6 LPA CTC → ₹50,000/month gross → minus ₹3,000 PF + ₹200 PT = ₹46,800 net take-home.
What is the difference between salary slip and payslip?▼
Salary slip and payslip are the same document — different terms used in different regions of India. "Salary slip" is more common in North India and in government contexts; "payslip" is more common in corporate and IT sectors. Both refer to the monthly document showing earnings, deductions, and net pay.