Payslip Template in Excel

Article byJeevan A Y
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Excel Payslip Template

As an employee, we all get salary receipts, the so-called “payslip,” from our employers, which is an acknowledgment of salary credited to the employee account. In the modern world, corporate companies use sophisticated software to prepare their employees’ payslips, but we can still rely on Excel to prepare them. This article will show you how to build a free payslip template in Excel.

Payslip or salary slip template in Excel is the receipt given by the employer to their employees every month upon payment of salary to the employee for the services rendered in the month. A payslip consists of all kinds of earnings and deductions under various heads as per the norms given by the government in the respective financial year.


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Examples of Free Payslip Template in Excel

Let us follow the below steps to build a free payslip Excel template on your own.

You can download this Payslip Excel Template here – Payslip Excel Template

Let us follow the below steps to build a free payslip Excel template on your own.

  1. You first need to set up general information about the company. For example, we should include the company name, address, phone number, and logo. After that, you can have any other information regarding the company.

    Pay Slip Template Example 1

  2. Next, you need to specify which month your salary is paid for.

    Pay Slip Template Example 1-1

  3. Next, you have to include all the information related to employees. Employee information should consist of the following items.

    Employee name, ID, designation, department, gender, date of joining, and location.

    Pay Slip Template Example 1-2

  4. Once the employee information is provided, we need to show the employee’s bank account number, bank name, UAN number, ESI number, and PAN number.

    Pay Slip Template Example 1-5

  5. Next, you need to show the period of paid days, LOP days, and days in a month.

    Pay Slip Template Example 1-3

  6. Once employer and employee information is inserted, we need to insert salary details per the break-up.

    First, include gross salary as per break-up.

    The salary structure includes “basic salary,” “HRA,” and “special allowances.” These elements are common elements of a fixed salary.

    Pay Slip Template Example 1-4

  7. We need to include other earnings like incentives, bonuses, overtime, etc.

    Pay Slip Template Example 1-6

  8. Once the earning part is decided, we need to mention the deductions under various heads per the government’s rules.

    The deduction may include Provident Fund, ESI, Professional Tax, Income Tax (TDS), or salary advance (If any). Of course, you can also consist of any other deductions.

    Pay Slip Template Example 1-7
    When you include deductions, you must be careful about Professional Tax, Provident Fund, and income tax calculations.

    The Provident Fund will be 12% of basic pay. The Professional Tax will be ₹200 if the gross salary is more than ₹15,000 or ₹150.

    The income tax calculations should be as per the rules and regulations of the government. You need to calculate TDS after deducting exemptions, so maintain an individual working for this. It is always a good practice to hire a good professional or consultant who is an expert in these matters.

  9. Next, we need to arrive at the net pay amount. To calculate this, apply the formula: Total Earnings – Total Deductions.

    Pay Slip Template Example 1-8

  10. So, once the net payment arrives, the payslip format is ready to use. It looks like this.

    Pay Slip Template Example 1-9

Payslip for Not Registered Companies

For small industries not registered with the company, secretaries will not have any TDS, PF, or ESI deductions. For them, it is simple to make a payslip.

Keeping in mind those unorganized industries, we also provide a payslip templatePayslip TemplatePayslips or salary slips are issued by every organization to its employees whenever the employer clears the salary for the period. A payslip offers a breakdown of the earnings and deductions of an employee in more for them.

Small industries include basic salaries as part of their salary structure.

Example 2

In small industries, employees work overtime most of the time. In such cases, factories pay overtime wages at 1.5 times of regular payment.

The overtime amount is calculated hourly, so it is important to mention OT hours, rate, and amount.

Payslip Template in Excel Example 2-1

So, the basic and OT payment gives the total payment.

Payslip Template in Excel Example 2-2

Next, in small industries, the deduction part includes only “salary advances,” so provide this column under deductions.

Payslip Template in Excel Example 2-3

So, now arrives the final net pay.

Payslip Template in Excel Example 2-4

Things to Remember

This article is a guide to the Payslip Template in Excel. We discuss building a free payslip template in Excel using formulas with a downloadable Excel sheet. You can also learn more about Excel from the following articles: –