Free Salary Slip Generator India 2026 PDF Payslip with PF, HRA & Professional Tax

Salary Slip Format India — What Every Payslip Must Contain

A salary slip, also called a payslip or pay stub, is a formal document issued by an employer to an employee every month. It serves as official proof of income and documents the breakdown of an employee's earnings and deductions for a given pay period. In India, while there is no single universally mandated format for salary slips under central law, various statutory regulations including the Payment of Wages Act 1936, Minimum Wages Act 1948, EPF Act 1952, and state-level Shops & Establishments Acts collectively require employers to maintain detailed wage records that can be verified by inspectors and employees.

A complete and compliant salary slip typically includes the following elements: the company name and address (sometimes with PAN and GSTIN for GST-registered entities); the employee's full name, designation, department, and employee ID; the pay period (month and year); a comprehensive earnings section listing Basic Salary, HRA, DA, and all applicable allowances; a deductions section covering PF, ESI, Professional Tax, TDS, and other recoveries; a summary showing Gross Earnings, Total Deductions, and Net Take-Home Pay; and ideally, the employer's contributions to PF and ESI (for total CTC transparency).

Understanding HRA — House Rent Allowance Rules 2026

House Rent Allowance (HRA) is one of the most significant salary components for salaried employees in India, both in terms of its size and its tax exemption potential under the Old Tax Regime. HRA is paid by the employer to help employees meet their rental expenses. The amount varies by employer and city type.

For metro cities — Delhi, Mumbai (including Navi Mumbai and Thane for this purpose), Kolkata, and Chennai — HRA is typically set at 50% of Basic Salary. For all other cities (non-metro), HRA is 40% of Basic Salary. This split forms the basis of most salary structures across Indian companies.

The HRA exemption under Section 10(13A) of the Income Tax Act is calculated as the least of: (a) actual HRA received from the employer; (b) 50% of Basic + DA for metro cities or 40% for non-metro cities; and (c) actual rent paid minus 10% of Basic + DA. If you live in your own house or do not pay rent, the entire HRA received is taxable. Under the New Tax Regime (which became the default from FY 2024-25), HRA exemption is not available — the full HRA received becomes part of taxable salary.

To claim HRA exemption from your employer, you must submit rent receipts (typically monthly) and, if annual rent exceeds ₹1 lakh, you must also provide the landlord's PAN. This declaration is made through Form 12BB at the start of the financial year. The employer will then exclude the eligible HRA from TDS calculations.

PF Deduction Rules — How Provident Fund Works on Your Payslip

The Employees' Provident Fund (EPF) is one of the most important retirement savings schemes for salaried employees in India, governed by the Employees' Provident Fund and Miscellaneous Provisions Act 1952. All establishments with 20 or more employees are mandatorily covered under EPF. Employees earning up to ₹15,000 per month (Basic + DA) must be enrolled; those above this threshold may also be covered voluntarily or as per employer policy.

The contribution structure is: Employee contributes 12% of Basic + DA (this amount is deducted from the salary and shown as a deduction on the payslip). Employer contributes a matching 12% of Basic + DA, but this amount is split: 8.33% goes to the Employees' Pension Scheme (EPS) — capped at ₹1,250 per month if basic exceeds ₹15,000 — and 3.67% goes directly to the EPF account.

Additionally, the employer pays 0.50% of Basic + DA towards the Employees' Deposit Linked Insurance (EDLI) scheme, which provides life insurance cover to the employee. The employer's PF contribution is NOT deducted from the employee's salary — it is an additional cost to the employer that increases the total CTC. On your salary slip, you should see the employee's 12% shown as a deduction, while the employer's contribution may be listed separately for CTC transparency.

The employee's PF contribution qualifies for deduction under Section 80C of the Income Tax Act (up to ₹1.5 lakh per year combined limit) under the Old Tax Regime. EPF interest is currently 8.25% per annum (for 2025-26), and withdrawals after 5 continuous years of service are exempt from tax.

Professional Tax — State-wise Slabs for 2026

Professional Tax (PT) is a state-level tax levied by certain Indian states on income earned from professions, employment, or trades. It is deducted by the employer from the employee's salary and remitted to the respective State Government. The maximum Professional Tax that can be levied in any state is ₹2,500 per year, as per the Constitution of India (Article 276). Not all states levy Professional Tax — notably, Delhi, Uttar Pradesh, Rajasthan, Haryana, Himachal Pradesh, and several northeastern states do not have a Professional Tax Act.

Maharashtra: Levied under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act 1975. Monthly salary up to ₹7,500: Nil. ₹7,501 to ₹10,000: ₹175 per month. ₹10,001 and above: ₹200 per month for all months except February, which is ₹300 (to make the annual total ₹2,500). Total annual deduction: ₹2,500.

Karnataka: Under the Karnataka Tax on Professions, Trades, Callings and Employments Act 1976. Monthly salary below ₹15,000: Nil. ₹15,000 to ₹29,999: ₹150 per month. ₹30,000 and above: ₹200 per month. Total annual maximum: ₹2,400.

West Bengal: Under the West Bengal State Tax on Professions, Trades, Callings and Employments Act 1979. Simplified slabs: Up to ₹10,000 monthly: Nil. ₹10,001–₹15,000: ₹110/month. ₹15,001–₹25,000: ₹130/month. ₹25,001–₹40,000: ₹150/month. Above ₹40,000: ₹200/month.

Andhra Pradesh & Telangana: Monthly salary up to ₹15,000: Nil. ₹15,001–₹20,000: ₹150/month. Above ₹20,000: ₹200/month.

Tamil Nadu: Professional Tax is effectively Nil for most salaried employees in Tamil Nadu. The state levies PT on certain professions (like lawyers, doctors in private practice) but for regular employees under employment, it is generally ₹0.

Goa: Monthly salary up to ₹10,000: Nil. Above ₹10,000: ₹200/month.

Professional Tax paid by the employee is allowed as a deduction from gross salary under Section 16(iii) of the Income Tax Act, even under the New Tax Regime. The employer is also entitled to deduct Professional Tax paid on behalf of employees as a business expense.

ESI — Employees' State Insurance Deduction Guide

Employees' State Insurance (ESI) is a social security and health insurance scheme administered by the Employees' State Insurance Corporation (ESIC) under the ESI Act 1948. It applies to factories and establishments covered under the Act where 10 or more persons are employed (10 or more in some states, 20 in others — depending on state notifications).

ESI applicability is based on the employee's gross monthly salary. As of 2026, employees whose gross monthly salary is ₹21,000 or less (₹25,000 or less for persons with disability) are covered under ESI. The contribution rates are: Employee: 0.75% of gross wages. Employer: 3.25% of gross wages. If an employee's salary in any month exceeds ₹21,000, contributions stop from that month, and the employee continues to avail benefits for the remainder of that contribution period (April-September or October-March).

ESI provides extensive benefits: medical care for the employee and family (through ESIC hospitals and dispensaries), maternity benefit (26 weeks' paid leave), sickness benefit (70% of daily wages for up to 91 days), disablement benefit, and dependant's benefit. Employees and their families can avail medical treatment free of cost at ESIC hospitals across India.

How to Calculate Net Take-Home Salary — Step by Step

Calculating your net take-home salary requires understanding the difference between CTC (Cost to Company), Gross Salary, and Net Salary. Here is the complete step-by-step process:

Step 1 — Start with Gross Monthly Salary. Gross Monthly Salary = CTC ÷ 12 (approximately, if CTC includes employer's PF and other contributions, you need to subtract those first to get true gross). For simplicity, many tools use CTC ÷ 12 as gross.

Step 2 — Break down Gross into components. Typically: Basic = 40-50% of Gross. HRA = 50% of Basic (metro) or 40% (non-metro). DA = varies by employer/sector. Special Allowance = Gross minus (Basic + HRA + DA + other allowances).

Step 3 — Calculate deductions. PF Employee = 12% of Basic (or 12% of ₹15,000 = ₹1,800 if capped). ESI Employee = 0.75% of Gross (only if Gross ≤ ₹21,000). Professional Tax = As per state slab. TDS = As calculated by employer based on annual tax liability ÷ 12.

Step 4 — Net Take-Home = Gross Earnings − Total Deductions. For example: Gross ₹50,000 − PF ₹2,400 − PT ₹200 − TDS ₹3,000 = Net ₹44,400.