Salary slips in Bangladesh are not just printed papers anymore. Many companies still give offline slips, but a lot of workplaces now also let employees download their salary slips online through HR software or mobile apps. By 2026, this online system will become more common across different industries.
A salary slip usually shows employee details, working hours, overtime, allowances, and deductions. These parts help explain how the final salary is calculated and follow basic labour rules in Bangladesh. Earlier, everything was handled on paper or Excel files. Now, most companies prefer digital systems because they are quicker and easier to manage.
Still, whether it is printed or online, the purpose stays the same, to clearly show how the salary is made and what the employee receives at the end of the month.
What Is a Salary Slip?
A salary slip is a monthly document your employer provides that shows how your salary is calculated. It lists your earnings, allowances, deductions, and the final amount you receive.
When you go through it, you can understand exactly how much you earned and what has been deducted. This helps avoid confusion and keeps salary calculations clear.
You may also need your salary slip as proof of income or employment. Banks often ask for it when you apply for a loan. It is also required during visa processing, income tax return filing, or when changing jobs.
In Bangladesh, many companies now provide both printed and digital salary slips. You might receive it by email or access it through HR software or an employee portal. This makes it easier to check and download your records whenever needed.
What Are the Components of a Salary Slip in Bangladesh?
Before generating, you must know the components of the salary pay slip format in Bangladesh. It has various components ranging from employee details, earnings, deductions, and net salary. Apart from that, company contributions are important too.
Employee and Employer Details
The main component is the details of the provider and the receiver. Otherwise, the pay slip would be of no use.
The employee information includes his name, ID (if available), and designation. Along with this, the permanent account number is also a must when receiving payments.
The employer details are also provided for authenticity. Company name, address, and contact details are often provided, along with the tax account number. It makes it easy for the employees to track and store it.
Earnings
Earnings include all payments you receive from your employer before any deductions. These include basic pay, House Rent Allowance (HRA), Dearness Allowance (DA), medical allowance, and other bonuses.
Basic Allowance
Basic allowance is the base amount that the employee gets paid without the extra allowances and deductions. This is the fixed amount; other amounts are calculated based on this. Usually, it is 40-50% of the total amount of the salary.
House Rent Allowance (HRA)
House rent allowance, commonly known as HRA, is the expense allocated for the accommodation of the employees. This amount can vary depending on the employee’s basic allowance.
The rule of thumb is to provide 50% of the basic pay as HRA. However, this can also vary based on cities. Like in Dhaka city, the HRA is calculated as 65% of the basic salary as per government laws.
Dearness Allowance (DA)
Dearness allowance is specially provided to employees in the government or public sector. This is the extra allowance provided, keeping the inflation rate into account. It’s just an added amount, 20-30% of the base salary, to reduce the impact of the high price of goods.
Conveyance Allowance
It is the cost of the transportation from home to work and vice versa. Often provided by the company as a conveyance allowance, it holds 10% of the basic salary. Companies lacking this payment often provide transportation systems, which is also a great benefit.
Medical Allowance
As the name suggests, it is an extra part of the salary provided for the medical support of the employees. The best part is the employees don’t need to provide any medical proof for this. This is the fixed amount provided monthly to the employees. For instance, in the public sector, it is 700 BDT for every official.
Other Allowance
There are other payments mentioned in the salary slip. It can include overtime payments, leave, and travel allowances. Again, employees with at least one year of service period receive festival bonuses twice a year.
Deductions
Payslips in Bangladesh usually include two main types of deductions. One is statutory deductions, and the other is salary adjustments or voluntary deductions. These apply across both government and private sector payroll systems.
Statutory Deductions
Statutory deductions are mandatory. These are required by law, and employers must deduct them from salaries and deposit them with the relevant government authorities or approved funds. –
Income Tax: Income tax is the main statutory deduction for employees in Bangladesh, whether in government or private jobs. It is managed under the National Board of Revenue (NBR) system.
Your employer deducts tax monthly as Advance Income Tax (AIT) based on estimated annual income. In Bangladesh, income from employment or profession is taxed under the progressive income tax system managed by NBR, with rates ranging from 0% to 30%. At the end of the financial year, your final tax liability is adjusted when you file your tax return.
Professional Tax: Professional tax is given to the state due to their profession or employment. The tax rate can be 0 to 20% based on the annual income.
Employee Provident Fund (EPF): A Provident Fund is a retirement savings system offered by some organizations. It is not mandatory for every employee in Bangladesh. If 75% of employees apply in writing, the employer must create a PF. If your organization provides PF, both you and your employer may contribute a fixed percentage of your salary, usually 7% to 10% of your basic salary.
Salary Adjustments
Apart from taxes, salary slips also include certain adjustments. These are not government taxes but are part of HR and payroll management.
Unpaid Leave Deduction: If you take leave without pay, your salary is reduced accordingly. The deduction is usually calculated based on your daily salary rate and applied to the number of unpaid leave days.
Late Attendance or Absence Deduction: Some organizations reduce salary if an employee is frequently late or absent without approval. This depends on internal HR policies and attendance rules.
Loan EMI Recovery: If you have taken a loan from your employer or through a company-arranged facility, the monthly installment is deducted directly from your salary based on the agreed repayment plan.
Salary Advance Adjustment: If you receive an advance on your salary, it is recovered gradually through monthly deductions until the full amount is adjusted.
Voluntary Deductions
These deductions depend on company policy and employee agreement. They are not required by law, but many organizations offer them as part of employee benefits.
Health Insurance: Some companies provide health insurance and deduct a small amount from the salary for it. This usually covers medical expenses and sometimes includes family members, depending on the policy.
Pensions: Pensions are common deductibles for salary slips in Bangladesh. This is more like a retirement salary scheme that is deducted from salary. Often, the public sectors of Bangladesh offer this.
Maintenance or Service Fee: This is optional; many companies do not include it in their salary structure. Service fees are used to compensate for mobile bills, transportation, and internet bills.
Unpaid Leaves: The unpaid leaves taken during the month are deducted from the salary under this segment.
Other Employee Benefits: In some cases, companies may adjust small amounts related to employee facilities. This can include things like mobile allowances, internet support, or transport-related costs, depending on company policy.
Net Salary and Gross Salary
Various calculation methods are used to calculate the gross and net salary in system generated salary slips. You can use any of them if it is convenient for you. Below are some of the popular formulas which can streamline the process.
Add up the basic allowance, HRA, DA, and other allowances for gross salary.
Gross Salary = Basic Allowance + HRA + DA (if applicable) + Medical Allowance + Conveyance Allowance Other Allowance
However, the net salary calculation is a bit different. For that, you need to subtract the statutory deductions from the total salary.
Net Salary = Gross Salary – (Income Tax + Provident Fund (if applicable) + Other Deductions)
Let’s take a simple example of an employee’s monthly salary in Bangladesh.
The employee earns:
- Basic Salary: BDT 30,000
- HRA: BDT 10,000
- DA: BDT 5,000
- Medical Allowance: BDT 3,000
- Conveyance Allowance: BDT 2,000
So, his Gross Salary
= BDT 30,000 + 10,000 + 5,000 + 3,000 + 2,000
= BDT 50,000
Now let’s look at the deductions:
- Income Tax (AIT): BDT 2,500
- Provident Fund (if applicable): BDT 3,000
- Other Deductions: BDT 500
Now, Net Salary
= BDT 50,000 – (2,500 + 3,000 + 500)
= BDT 50,000 – 6,000
So, the employee’s net salary is BDT 44,000
Company Contributions
Company contributions are the benefits a company provides without any deductions from the salary. To put it simply, it is the overall compensation package that the company bears entirely. This is provided in different sections in the pay slip for transparency and clear breakdown.
The common examples of company contributions are –
- Premium medical insurance
- Retirement funds
- Professional development cost
- Learning and training compensation
- Provident fund
Examples of Salary Slip Formats in Bangladesh
You can create salary slips in both Word and Excel. Also, you can use the PiHR format to do that. The format isn’t exactly the same everywhere, but the basics don’t really change — you’ll still see your salary breakdown, deductions, and the final amount you take home.
If a company uses HR software, you can just log in to your account and download the salary slip from the payroll section. It usually takes a few clicks, and the file is ready as a PDF for that month.
In smaller companies, things are more manual. HR teams often prepare the salary slip in Excel or Word and send it over by email or print it out for employees.
Different industries also handle it a bit differently. Garment factories, for example, often include overtime and attendance bonuses in the slip. IT companies usually add things like performance bonuses or remote work allowances. Banks tend to show a more detailed breakdown of salary and deductions.
Simple Salary Slip Format in Word
Salary Slip Format Example #1 (Microsoft Word & Google Doc Supported)
Salary Slip Format Example #2 (Microsoft Word & Google Doc Supported)
Salary Slip Format Example #3 (Microsoft Word & Google Doc Supported)
Simple Salary Slip Format in Excel
Salary Slip Format Example #1 (Microsoft Word & Google Doc Supported)
Salary Slip Format Example #2 (Microsoft Word & Google Doc Supported)
Salary Slip Format Example #3 (Microsoft Excel & Google Sheet Supported)
Salary Slip Format in PiHR
PiHR is a HR and payroll software to manage HR processes of a business. This is one of the best HR software companies in Bangladesh that automates administrative works like generating salary slips.
To create pay slips easily, PiHR presents you with an intuitive pay slip format. It provides a proper breakdown of the salary with deduction options. By following this format, the entire salary slip generation is done with a few clicks.
How to Create a Salary Slip?
Creating a salary slip isn’t complicated once you understand the basics. Companies usually follow one of two approaches. Either they prepare it manually or use payroll software.
Manual Method: Word / Excel / PDF
In many small and mid-sized companies, salary slips are still prepared manually using Word or Excel. It takes a bit more effort, but the process is straightforward.
For manual salary generation, companies usually follow the steps below.
- Keep records of the employee details (name, PAN, tax information, etc.).
- Understand the basic components of the salary slip, like basic allowance, net salary, and deductibles.
- Calculate the gross salary of the employees.
- Calculate overtime and include it in the gross salary where applicable.
- Calculate the deductibles like income tax, EPF, and insurance.
- Find out the net salary using the mathematical formula.
- Format the entire slip in Word or Excel, keeping the signature space.
Automated Method: HR software / Payroll software / ESS portal
With payroll software, the process becomes much simpler. Many growing companies usually don’t calculate everything manually. Instead, they use payroll software or HR systems.
For that, you just need to –
- Choose a payroll software according to your business needs.
- Configure it and add all the company details to the system.
- Customize the salary components according to your company policies.
- Input your data for automated calculations and deductibles, and generate the salary slip.
- Review and send it to employees in one touch.
Why Should You Use HR Software to Prepare Salary Slips?
HR software is increasingly popular nowadays as more businesses are using it. It mostly comes down to saving time and avoiding the monthly headache of handling salary calculations. Globally as well, HR tools are already widely used, with around 85% of organizations using some form of HR technology, so it’s not really a new thing anymore.
Once a company starts using HR software, salary work becomes much easier. Instead of calculating everything step by step, the system takes care of basic salary, allowances, tax, and deductions using employee records. It simply reduces a lot of manual work every month.
Employees also don’t need to depend on HR for salary slips anymore. They can just log in to a self-service portal and download it whenever they need. Most systems now even work on mobile, so checking salary details becomes very easy.
Tax handling is another area where it helps. Income tax and other deductions are updated automatically based on current rules, so HR teams don’t have to keep checking changes all the time. Overall, it just makes payroll easier to manage for everyone involved.
