What's on your salary slip? Every component explained
A salary slip packs a dozen abbreviations onto one page. Here's what each line means — split into what you earn and what's deducted — and how they combine into the figure that actually reaches your bank.
The two halves of a payslip
Almost every Indian salary slip has two sections. Earnings (what you're paid) and Deductions (what's taken out). The maths is simple:
- Gross salary = total of all earnings;
- In-hand (net) salary = gross salary − total deductions.
Common earnings
- Basic salary — the fixed core of your pay and the base for PF, gratuity and HRA limits. See what basic salary is.
- HRA (House Rent Allowance) — can be partly tax-free if you pay rent. See how HRA works.
- Dearness Allowance (DA) — a cost-of-living component, common in government and PSU pay; often a percentage of basic.
- Special / other allowances — the balancing component that makes up the rest of your pay; fully taxable.
- LTA, conveyance, bonus / variable pay — periodic or conditional earnings that may appear depending on your employer.
Common deductions
- Employee PF — 12% of basic, your own contribution to your EPF retirement account.
- Professional tax — a small state levy, typically up to ₹200 a month.
- TDS (income tax) — tax your employer deducts and deposits with the government. See why TDS is deducted.
- ESI — only if your gross is within the ESI wage limit (₹21,000 a month); most salaried professionals above that don't see it.
Gross, net and CTC
Your payslip shows gross and net, but your offer letter shows CTC — a bigger number that also includes the employer's PF and gratuity. The difference between all three is explained in CTC vs take-home salary.
See your own breakdown
Put your numbers into the take-home salary calculator for a full component-by-component breakdown, or decode your actual payslip line by line.
Frequently asked questions
What is the difference between earnings and deductions on a payslip?
Earnings are what your employer pays you — basic, HRA, allowances and any bonus. Deductions are what's taken out — your PF contribution, professional tax and TDS (income tax). Total earnings is your gross salary; gross minus deductions is your in-hand (net) pay.
What does gross salary mean on a salary slip?
Gross salary is the sum of all your earnings (basic, HRA, DA, allowances) before any deductions. It is usually your CTC minus the employer's PF and gratuity contributions, which don't appear as cash earnings on the slip.
Why does a salary slip have so many allowances?
Salaries are split into components partly for structure and partly for tax: some allowances (like HRA) can be partly exempt in the old regime. The split doesn't change your gross — it just affects how much of it is taxable.
What is professional tax on my payslip?
Professional tax is a small tax levied by some Indian states on salaried income, typically up to ₹200 a month (₹2,500 a year). It's deducted by your employer and is unrelated to income tax/TDS.
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