How to Generate a Salary Slip in India: Complete Guide with PF & PT Calculation
A salary slip (also called payslip) is an essential document for every employee in India. It serves as proof of employment, income verification for loans and visas, and helps employees understand their earnings and deductions. For employers, issuing proper salary slips is a legal requirement under various labour laws.
In this comprehensive guide, we'll explain every component of a salary slip, show you how PF and Professional Tax are calculated, provide real examples, and help you generate professional payslips instantly.
Generate a Salary Slip Instantly
Use our free Salary Slip Generator to create professional payslips with auto PF calculation at 12%, PT deduction, and instant PDF download.
Open Salary Slip GeneratorTable of Contents
Salary Components Explained
A typical Indian salary slip includes the following earnings components:
| Component | Description | Percentage of Basic |
|---|---|---|
| Basic Salary | Core salary — forms the base for PF, gratuity, and other calculations | 40-50% of CTC |
| House Rent Allowance (HRA) | Housing allowance — partially or fully exempt from tax under Section 10(13A) | 40-50% of Basic |
| Dearness Allowance (DA) | Cost of living adjustment — paid to offset inflation (common in government & PSUs) | Variable |
| Conveyance Allowance | Travel allowance — up to ₹1,600/month exempt from tax | Fixed amount |
| Medical Allowance | Medical reimbursement or allowance — up to ₹15,000/year exempt | Fixed amount |
| Special Allowance | Balancing component to make up the gross salary — fully taxable | Remaining amount |
PF (Provident Fund) Calculation
Employee Provident Fund (EPF) is a mandatory retirement savings scheme in India regulated by the EPFO. Both employee and employer contribute 12% of the Basic Salary.
Employee Contribution
12% of Basic Salary
Example: Basic = ₹25,000
Employee PF = ₹3,000
Employer Contribution
12% of Basic Salary
Split: 8.33% to EPS + 3.67% to EPF
Example: Basic = ₹25,000
EPS: ₹2,083 | EPF: ₹917
Important PF Rules:
- PF is mandatory if Basic + DA ≤ ₹15,000/month
- Employees can voluntarily contribute above 12% (VPF — Voluntary PF)
- PF interest rate for FY 2025-26 is 8.25% (tax-free)
- Our Salary Slip Generator auto-calculates PF at 12% of Basic
Professional Tax (PT) in India
Professional Tax is a state-level tax levied on salaried employees and professionals. Not all states levy PT — it's applicable in about 16 states including Karnataka, Maharashtra, Tamil Nadu, West Bengal, and Gujarat.
| State | Maximum PT per Month | Maximum per Year |
|---|---|---|
| Karnataka | ₹₹200 | ₹₹2,400 |
| Maharashtra | ₹₹300 | ₹₹3,500 |
| Tamil Nadu | ₹₹208 | ₹₹2,500 |
| West Bengal | ₹₹250 | ₹₹3,000 |
| Gujarat | ₹₹200 | ₹₹2,400 |
| Andhra Pradesh | ₹₹200 | ₹₹2,400 |
TDS on Salary
Tax Deducted at Source (TDS) on salary is calculated based on the employee's applicable income tax slab — either the Old Regime or New Regime. The employer deducts TDS every month and deposits it with the government.
TDS on salary depends on:
- The employee's chosen tax regime (Old vs New)
- Declared investments under Section 80C, 80D, HRA, etc. (for Old Regime)
- Standard deduction (₹50,000 for Old, ₹75,000 for New Regime)
- Form 16 is issued annually as proof of TDS deducted
Tip:
Use our Income Tax Calculator to compare Old vs New regime and determine the exact TDS amount for your salary.
CTC vs Gross Salary vs Net Salary
Understanding these three terms is essential for both employers and employees:
CTC (Cost to Company)
The total amount the employer spends on an employee in a year. Includes gross salary, employer PF contribution, gratuity, bonus, insurance premiums, and other benefits.
CTC = ₹6,00,000 (includes all costs)
Gross Salary
CTC minus employer-side contributions (employer PF, gratuity, etc.). This is the total earnings before any employee deductions.
Gross = ₹5,40,000 (CTC minus employer PF & gratuity)
Net Salary (Take-Home)
Gross Salary minus employee deductions (employee PF, Professional Tax, TDS). This is the actual amount credited to the employee's bank account each month.
Net = ~₹4,60,000/year | ~₹38,333/month
Example: Complete Salary Slip
Here's a sample salary slip for an employee with a ₹6,00,000 CTC in Karnataka:
Tech Solutions Pvt Ltd
Salary Slip — July 2026
Employee: Rajesh Kumar | Emp ID: EMP-042
Earnings (₹)
Deductions (₹)
How to Generate a Salary Slip Online
Enter Employee Details
Enter the employee name, designation, department, and pay period (month & year). These details appear at the top of the salary slip.
Add Earnings Components
Enter Basic Salary, HRA, DA, Conveyance Allowance, Medical Allowance, and any special allowances. Our generator auto-calculates the gross salary.
Review Auto-Calculated Deductions
PF is automatically calculated at 12% of Basic. Professional Tax is applied based on the selected state. Enter TDS or other deductions manually.
Preview & Download PDF
Preview the complete salary slip with all earnings and deductions. Download as a professional PDF instantly — no sign-up required.
Create Salary Slips for Your Employees
Generate professional payslips with auto PF calculation, PT deduction, and PDF download. Free to use — no subscription needed.
Frequently Asked Questions
What components are included in a salary slip?
How is PF calculated in a salary slip?
What is Professional Tax (PT) and how is it calculated?
What is the difference between gross salary, net salary, and CTC?
Can I generate a salary slip without a payroll subscription?
Conclusion
Generating accurate salary slips is essential for both compliance and employee satisfaction. A well-structured salary slip helps employees understand their compensation and serves as critical documentation for loans, visas, and tax filing.
- Understand the difference between CTC, Gross, and Net salary to avoid confusion
- Calculate PF at 12% of Basic Salary accurately
- Apply correct Professional Tax based on the employee's state
- Deduct TDS based on the employee's chosen tax regime
- Use our Salary Slip Generator for instant, error-free payslips
Ready to create a payslip? Try our free Salary Slip Generator — auto-calculates PF, PT, and generates a professional PDF in seconds.