The excitement that comes with receiving your salary every payday might overshadow a few things—impulse control, for example, when you buy something you don't really need, or spend a little more on Friday night drinks than you intended to. One thing that shouldn't take the backseat on payday? Checking out your payslip. You might feel tempted to let your eyes glaze over the rows of numbers, but don't: Your payslip can be used as documentation if you apply for loans, credit, or insurance—any purpose where proof of income is required.
Futhermore, your payslip contains all your essential pay period information. In case you're taken aback because the amount being credited to you is less than you were promised when you signed your contract, you can look at your payslip to see the exact breakdown of your salary.
Below are the components and an example of a standard payslip:
1. Your basic information: This includes your name, position, date of hire, and employee number. Some payslips even include the employee's address, TIN number, and bank account number.
2. Pay period: This includes the period start date, period ending date, and the payable date.
3. Your basic gross pay for that particular period: Some companies also indicate both the monthly and hourly rate as well.
4. Overtime: Payslips also list down how many hours were spent working overtime, as well as the hourly rate under that condition.
5. Bonuses: Any company-specific bonuses given to you during the pay period will be recorded in the corresponding payslip. Though not quite a bonus because it is mandated by law, your 13th month pay will also be listed on your payslip if it is included in that month's payment.
6. Allowances: Extra payments such as rice, transportation, cost-of-living, clothing/laundry, and mobile allowances, whether taxable or non-taxable, are also listed under your earnings for the month.
7. Deductions: Perhaps the most painful part of your payslip—this includes your PhilHealth, Social Security System, and Pag-IBIG contributions, as well as withholding tax and loan payments (if you ever took out a company loan). Additional deductions include any purchases (say, hardware) you made with the company, as well as union dues or stock option payments.
8. Net pay: The final (and most important) number on your stub is your net pay—the actual amount you receive for that period after the bonuses, additional payments, and deductions have been taken into account.