Thing you need to know about your salary slip

Every month, your finance department will send you a salary slip once the salary gets paid out.

For most people, the importance of salary slip is only when they apply for a loan or a new credit card.

Otherwise, the confusing terms and figures seem like a puzzle you don’t want to solve.

But here’s why you might want to understand your salary slip better.

• Choose smartly from competing offers when you are looking to switch jobs

• Optimize tax liability by making full use of the deductions available

• Understand what percentage of your salary is forced savings (EPF, ESI etc.)

Things to keep in mind when comparing salary slips in offers:

# 1. Your basic salary is critical as most of your allowances will be based on that figure.

# 2. Look for special allowances and check whether they are performance or event based.

#3. Do not focus only on the in-hand salary. Look at the other benefits the company provides (health insurance, accident insurance, free food, bus transport, better career growth) which might outmatch a higher in-hand salary offer from some other company.