Having knowledge of salary slips and their components can help an employee take advantage of the tax deductions available, hence allowing them to plan their taxes efficiently. It also acts as a negotiating agent for salary hikes while changing new jobs.
Choosing the Next Job Smartly:Ī salary slip assists in choosing jobs smartly from different companies while switching jobs. It is very important to understand salary slips and their components as it can help employees take advantage of the situations around them: 1. It also helps in filing income tax returns and applying for loans and mortgages and negotiating for a salary hike when applying for a new job. Also, the salary slip acts as proof of employment. A Salary Slip or Payslip is legal proof of income for an employee.
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