A payroll slip, as you may be aware of, is a professional and informal document in the form of a slip that contains the salary details about an employee. According to law, the employer is responsible for issuing the salary slips either periodically or within a certain time interval. Usually, this time interval has a month’s duration. The payroll slip must contain the logo of the company, organisation or the issuing authority along with its name and address.
Elements of the payroll slip hong kong
Essentially, income or earnings, and deductions are the two major components that form the payroll slip hong kong. Let us have a detailed look at both of these components.
It is divided into the following sections: –
- Basic salary: This is the most important component of the payroll slip
- Performance-related special allowances
- HRA: Human Resource Allowances
- Additional/other allowances
- Dearness allowance (DA)
This section of the payroll slip contains the amount that is deducted from the base salary. It essentially has three parts: –
- EPF: Employee Provident Fund. It is 12% of your basic salary
- TDS: Tax deductible at source. A certain amount will be deducted by your employer from your every salary as an essential deduction on behalf of the Income Tax Department.
- Professional tax.