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How to read your Payslip - Part 1

My first post had to be about the most requested topic - SALARY. As much as we all love the feeling of money getting credited into our account every month, we are also worried about all the deductions from our salary. Here's an attempt to breakdown the components in a payslip, with the help of a PIE. That's right :)

“Imagine if your entire salary was a PIE”

“Just like the pie, your salary is made of different ingredients. Let's assume each slice of the pie is a component of your salary”

Salary Components - A closer look:


Now if you go back and look at your actual payslip, you will notice two columns - Earnings and Deductions. You can now correlate the terms used in the payslip with the pie image used here.

Stay tuned for Part 2 of this post, to understand these terminologies better.



Hi, thanks for stopping by!

I'm Shikha Rao, a Chartered Accountant and a Social Media Enthusiast.

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