Quick answer: A payslip is the statement you give an employee for each wage period, showing gross earnings, every deduction and the net amount paid. In India, the Wages (Central) Rules, 2026 require a wage slip in Form V on or before the day wages are paid, either on paper or electronically.
- Monthly wages are due before the 7th of the next month under section 17 of the Code on Wages.
- Rule 52 of the Wages (Central) Rules, 2026 prescribes Form V for the wage slip.
- Wage registers in Forms I, IV and IX must be kept for five years after the last entry.
- Maharashtra’s rules under the Code are still being finalised, and older state rules continue where they fit the Code.
What does an Indian payslip show?
Earnings at the top, deductions below, net pay at the bottom. That’s the skeleton of every salary slip.
Form V sets the legal minimum. Taxmann’s guide to the Wages (Central) Rules, 2026 walks through the form and the registers behind it.
A useful payslip goes further. It carries the employee’s PAN and UAN, days paid, any loss of pay days and year-to-date totals, because employees reuse it for home loans, rent agreements and visa applications.
How does an ₹80,000 Pune payslip break down?
Let’s say an engineer in Pune earns ₹80,000 a month, with basic at half of gross. PF is restricted to the ₹25,000 ceiling. She uses the new tax regime.
| Payslip line | Amount |
|---|---|
| Basic salary | ₹40,000 |
| House rent allowance | ₹16,000 |
| Special allowance | ₹24,000 |
| Gross earnings | ₹80,000 |
| Employee PF (12% of ₹25,000) | ₹3,000 |
| Professional Tax (Maharashtra) | ₹200 |
| TDS on salary | ₹0 |
| Net pay | ₹76,800 |
TDS is nil for a simple reason. Her yearly gross salary of ₹9,60,000, minus the ₹75,000 standard deduction, leaves ₹8,85,000, which sits under the ₹12 lakh rebate limit.
ESI doesn’t apply above ₹21,000 a month. In February, though, Professional Tax rises to ₹300, so her net salary dips by ₹100.
What payslip mistakes do foreign employers make?
Timing is the most common one. A payslip sent a week after the salary credit breaks the “on or before payday” rule.
The second is a mismatch. Twelve payslips should add up to the annual TDS certificate: Form 16 for FY 2025-26, then Form 130 from tax year 2026-27. If they don’t, expect questions. The employee asks first, and the tax department asks later, usually when it matches TDS statements against what each employee declared in the return.
Third, the employer name. Under an employer of record, the payslip names the EOR as employer, so tell your team before the first one lands. Our guide on how to pay employees in India covers the full pay run.
How does Remunance issue payslips for your India team?
Remunance issues every payslip under its own Indian entity, on or before payday. Every month. Payslips carry salary, PAN and bank details, so they sit inside our ISO/IEC 27001:2022 certified systems (see our ISO certifications). Raise a query on any line and we answer within 2 working days. To see the format your team would receive, book a payroll walkthrough with our India team.
What else do people ask about payslips?
Is a payslip mandatory in India?
Yes, for employers covered by the Wages (Central) Rules, 2026, which require a Form V wage slip by payday. Maharashtra’s own rules are still being finalised, but a payslip stays your best proof of on-time payment.
Can payslips be sent by email in India?
Yes. Rule 52 allows electronic issue, so a PDF by email or a download from an employee self-service portal both work.
What is the difference between a payslip and Form 16?
A payslip covers one month. Form 16, renamed Form 130 from tax year 2026-27, is the annual TDS certificate, due by 15 June after the tax year ends.