Why Salary Slip Is Essential for an Employee

Salary slip is an important document in the hands of an employee. It is authentication of the amount he would get from the company at the end of the month. Preparing a pay structure is not difficult as the Accounts departments feeds every single detail about the employee, his perks and allowances in the computer.

Keep track of expenses

Salary is the only weapon in the hands of employee to meet the monthly expenses. The pay slip has adequate segregation of payment received by him. It helps the employee prepare a list of savings and investments. It allows him to keep aside certain funds to meet emergency situation. The employee is able to gather idea about using money on entertainment, holiday or other personal commitments. He gets a fair idea of spending money on home, children, children’s education, home loan and car loan. It helps him to economize each month as the growing demands of family continue to rise in the face of recession.

Looking for a job change!

If the employee is searching for a new job, he needs to show the original documents containing information about his qualifications, current job and its specifications, salary last withdrawn and training received while serving in the previous company. His intention is to receive a good pay from the new company. Thus, he could ask for a better package at the place of his interview. Interviewers often ask about the pay and how much the candidate is willing to negotiate. However, they don’t depend on the word of mouth to receive confirmation about the current income structure at the previous or present company of work. They need a solid and genuine proof which stands as an assurance. It is an assurance that the prospect is, in fact, drawing the said amount at his current place of work or received during the previous employment. This also proves he is a genuine and honest person to recruit. The salary slip acts as a genuine evidence of his annual income. The Accounts department gets a precise idea about the amount segregated under different heads of income from the pay slip.

The goal of every employee is to get hike in current package either in the same company or by changing job. The pay structure has details like days of work, the amount drawn and the allowances, if any. The pay slip also acts as an armor of his honesty and integrity towards the job. Either way he can expect to get good increment from his current levels revealed through salary slip.

By Neerja Mehta