Salary Slip vs Payslip: PF, ESI, PT & TDS Explained (2026)
Salary slip and payslip mean the same thing — here's what each earning and deduction line on an Indian payslip actually means in 2026, from PF and ESI to Professional Tax and TDS.
"Salary slip" and "payslip" are two names for the same document — the monthly statement of how an employee's pay was calculated. There is no difference; "payslip" is simply the more common term internationally and "salary slip" in India. What matters is understanding the lines on it, especially the statutory deductions. This guide explains each one.
Quick answer: salary slip = payslip = pay stub. Same document, different names.
The earnings side
- Basic — the core of the salary; most statutory calculations (like PF) are based on it.
- HRA (House Rent Allowance) — an allowance for rent; partly tax-exempt if you pay rent.
- DA (Dearness Allowance) — a cost-of-living component, common in government and some private jobs.
- Special / other allowances — the balancing components that make up the rest of the pay.
The deductions side
| Deduction | What it is | Typical basis |
|---|---|---|
| PF (Provident Fund) | Retirement savings; employee + employer both contribute | 12% of PF wages (Basic + DA), up to the ₹15,000/month ceiling |
| ESI | State insurance for medical/health benefits | 0.75% of wages, if gross ≤ ₹21,000/month |
| Professional Tax (PT) | A state-level tax on employment | State slab — e.g. up to ₹200/month |
| TDS | Income tax deducted at source by the employer | As per the employee's annual tax computation |
PF and ESI have both an employee share (shown on the payslip) and an employer share (a cost to the company, usually not deducted from the employee).
See it on a real payslip
- Salary Slip Generator — make one and see the lines
- Salary Slip Format in India — components & sample
- How to Make a Salary Slip (step by step)
- Automate payroll for your whole team (KukBook)
General information only, not tax or legal advice. PF/ESI/PT/TDS rates and thresholds vary by state and change over time — verify the current position for your case. Last reviewed: September 2026.
