Who this payslip is for
Large companies run payroll software. This generator is for everyone else: a shop or bakery with a few staff, a clinic, a small agency, a family paying a driver or cook, or a startup before it buys an HR tool. A clear monthly payslip protects both sides. Your employee gets proof of income for a loan, a rental agreement or a visa, and you get a record of exactly what was paid and deducted.
How each line is worked out
Paid fraction = (working days − unpaid leave) ÷ working days
Each earning = monthly amount × paid fraction
Employee PF = 12% × basic + DA (capped at ₹15,000 unless you pay on full basic)
ESI = 0.75% × gross, only if gross ≤ ₹21,000
Net pay = gross earnings − PF − ESI − professional tax − TDSWith the example figures (basic ₹20,000, HRA ₹8,000, special allowance ₹9,000, no leave), gross is ₹37,000. PF is 12% of the ₹15,000 wage ceiling, ₹1,800, and professional tax is ₹200, so net pay is ₹35,000. Gross is above ₹21,000, so ESI doesn't apply.
The 50% wages rule
The Code on Wages, in force since 21 November 2025, defines "wages" as basic pay, dearness allowance and retaining allowance. If the excluded allowances such as HRA, conveyance and special allowance add up to more than half of total pay, the excess is treated as wages. In practice that means a salary structure with a tiny basic and a huge special allowance no longer shrinks PF and gratuity. The generator warns you when basic + DA is below 50% of pay so you can restructure before it becomes a compliance issue.
PF, ESI and professional tax in brief
- PF is compulsory for establishments with 20 or more employees. The employee's 12% is deducted from pay; the employer adds a matching 12%, which is shown on the slip but not deducted.
- ESI applies in notified areas to employers with 10 or more workers, for employees earning up to ₹21,000 a month. The employee pays 0.75% and the employer 3.25%.
- Professional tax is a state levy with its own slabs. Maharashtra, Karnataka, West Bengal and several other states charge up to ₹200 a month (₹2,500 a year at most); some states charge none. Enter the amount for your state.
- TDS is the income tax you deduct if the employee's annual salary is taxable. Use the TDS on salary calculator to work out the monthly figure.
Unpaid leave
Enter the days of leave without pay and every earning is reduced in proportion. Some employers deduct only from basic; if that's your policy, reduce the basic figure yourself and leave the unpaid days at zero.
Good payroll habits
Pay salaries by bank transfer or UPI rather than cash, keep a signed copy of each payslip, and give employees a Form 16 at year end if you deducted TDS. If you're a freelancer billing clients, you need an invoice rather than a payslip: use the GST invoice generator.
Frequently asked questions
Is a payslip from this generator valid for a loan application?
Banks accept payslips from any employer as long as they show the employer and employee details, the month, earnings, deductions and net pay, and match the salary credits in the bank statement. A company seal or signature helps.
Should PF be calculated on the full basic or ₹15,000?
The statutory contribution is 12% of wages up to ₹15,000 a month. Employers can choose to contribute on the full basic; both options are available.
Why is ESI not showing?
ESI applies only when gross monthly pay is ₹21,000 or less. Above that the employee is outside ESI.
Does it save my employees' details?
The last payslip you made is saved in your own browser to speed up next month. Nothing is sent to our server.
Official references: EPFO · ESIC · Ministry of Labour & Employment