Itemized payslips are provided to the employeeseither in soft copy or hard copy that clearly states the segregation of their monthly salary/wage payment. If anyone is being paid for extra work or deducted for any reason such as tax, court-ordered, superannuation, etc, it is clearly stated in such slips. According to the Employment Act providing itemized payslips are compulsory to the employees from 1st April 2016. Though it is considered that showing balances in the payslips are the best practices but it is not legal accordingly.
Benefits of ItemisedPayslips
- Itemised payslips help the employees to understand the segregation of their salary which creates a transparent relationship between employer and the employee.
- It exposes the employees to real rights also which puts the employers in a mandatory situation to provide the minimum wage to their employees.
- It is the best practice for the workers as the additional hours will be mentioned in the payslips and they will be paid additional wage accordingly.
- But there is no retrospective effect on these payslips. Before 2016 the amount of salary/ wage already distributed should not be changed in any manner and additional information is not required to be placed in there which is a relief for the employers.
It can be maintained in hardcopy as well as in software. In small organizations where the number of workers and employees are less in number, they can opt for physical copies of such payslips, but in large organization maintaining pay slips in digital form becomes necessary for various reasons.
- It is easy to handle and can access 24×7 from anywhere anytime, can be mailed to anybody and it also becomes hassle-free to deal with such itemized payslips.
- Maintaining in digital form to save the costly expense of the copy to a large extent.
- Historical salary details can be verified at any time while applying for certain loans or mortgages.
- When digitally maintained pay slips, it is also a contribution to the environment as paper wastage reduces.
To conclude, introducing itemisedpayslips has created a win-win situation for both the employers as well as the employees. Where the employers can keep complete and detailed information on their employees’ pay and their work in a scheduled manner, the employees also get an opportunity to fight for their rights and their deductions. Since the status of the worker is also clearly mentioned in these payslipsalong with the segregation of salary/wage, it not only provides security to the employee but also supports them for their further increment. Moreover, when such payslips are maintained in digital form they are more beneficial to both the parties. The administrative burden is reduced to a large extent when maintained electronically.