What is a salary slip? A salary slip is a document that gives details about the pay earned by an employee during a specific period. It notifies the employer about the payment of salaries, allowances, and gratuities of the employees. The information on the salary slip includes name, designation, designation code and date of service, type of employment and last drawn salary with deductions. It is a constant proof of record hence you can use things like a gratuity calculator online to cross-check the values in the slip anytime you want. However, a salary slip is extremely important. Let’s go ahead and check the most important functions of a salary slip:
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Important for future jobs
When looking for a new job, hiring managers can easily verify whether you meet their requirements by checking your salary slip. If you are unable to provide one, it can put you at a disadvantage since your employer will be able to check your credentials before proceeding with any further hiring process.
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Proof of employment
Salary slips are important as they serve as proof of employment to the employee and his/her family members. An employee must submit his/her salary slip along with other documents during the application process for a new job when applying for a change in job location when applying for a promotion or increase in pay and on many other occasions too.
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For getting loans and credit cards
The salary slip is a document that can be used for all kinds of applications. One of the most important uses of the salary slip is to apply for loans from banks and other financial institutions. The bank will ask you to fill out your application form, but this will be done at the end of the month and there is no need to pay any attention to it until then. You can also use your salary slip as an application for a credit card so that you can spend money freely whenever you need it.
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Essential for filing income tax returns
If you have been employed for one year or more, then you have to file an income tax return with your employer every year. If you want to file a tax return online, then you will be required to provide proof of employment and your salary slip will help in this process. Your employer also has a copy of this document and they can send it along with their copy of your tax return if they wish so (they do not need to do this).
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Give access to government-sponsored welfare schemes
Salary slips are the most important document in an employee’s life. It gives the right to claim benefits under government-sponsored welfare schemes.
Salary slips are the only documents that can provide proof of income and taxes paid by employees. In case of any dispute, they are used as evidence to support the claim made by an employee before any other document, such as a passport and PAN card.
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To find out provident fund contribution
A salary slip is commonly used to determine provident fund contributions. Obtain it from your employer directly or through the HR department. Additionally, considering financial options like payday loans can provide short-term assistance during emergencies, ensuring financial stability amidst unforeseen circumstances.
Your provident fund account number is on the top right-hand corner of the slip, while your date of birth and Aadhaar number is at the bottom right-hand corner. The amount that you’ll get by contributing to your provident fund (PF) will be shown in that column, which is not to be confused with an employee’s gross amount earned per month or year (i.e., gross salary). You can also check if the number is accurate by using a reliable epf calculator 2022 or whichever is the latest.