Payslip Template In Excel

Updated on March 29, 2024
Article byJeevan A Y
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What Is 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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Key Takeaways

  • A payslip template in Excel is a tool used by corporate companies to prepare employee salary receipts. While sophisticated software is used, Excel can still be used to create these receipts, ensuring accurate and timely payment.
  • Secretaries are not responsible for deductions in small, unregistered industries, and they can easily create payslips. Additionally, a payslip template is provided for these unorganized industries.
  • The payslip is visually appealing, but the payroll team must calculate net pay using advanced software. However, if the organization’s structure differs, the template must be modified, and TDS calculations are complex.

Example 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

  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

Pay Slip 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 template 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

Important Things To Note

  • The payslip looks beautiful, but the payroll team must put much effort into arriving at the net pay amount.
  • In today’s sophisticated software, we can design anything and everything with the help of automation.
  • We must download the template and modify the contents; if the organization’s salary structure is different.
  • Remember to keep ourselves up-to-date. It is because of complex TDS calculations.

Frequently Asked Questions

1. How do I download a payslip PDF?

To download a payslip, first ensure your organization has an employee portal or HR software. Access your account in the payroll or salary area and find a link to download your wage slip. If not, request a digital copy from HR.

2. How do you write a payslip format?

A payslip must include the organization’s information, the employee’s basic details, pay period, gross pay, salary components, deductions, net pay, and payment date.

3. What is the basic payslip?

A payslip is a document provided by employers to employees detailing their earnings, including gross pay, deductions, and net pay, and serves as evidence of earnings and proof of employment.

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: –