SALARY
Salary
Salary refers to the total monetary compensation paid by an employer to an employee at regular intervals in exchange for the services rendered by the employee. Usually, salaries are paid monthly in many payroll systems, including the Indian Payroll system. Salary is a critical component of the employer-employee relationship, representing the financial agreement for the services provided.
Salary calculation involves deducting statutory deductions like Provident Fund and Income Tax from the gross salary. After these deductions, the employee receives the net pay or take-home salary. After each salary payment, employees receive a document known as a salary slip or payslip. A detailed breakdown of the total earnings and deductions for the given month is provided in the slip, and it serves as proof of payment.