Salary Slip, About Company Obligations and Employee Rights
Salary slips , when viewed from the format, are details regarding income and deductions in employee salaries or wages, so that employees know exactly how much wages should be received, how many deductions or additions are made, what are the subtraction and addition variables, and some other details. Apart from being obliged to be given as stipulated in the PP, slips are also a form of company transparency to its employees.
Examples of subtraction and addition variables from one's own wages include sales commissions, reimbursement costs , incentives related to certain activities, employee absences related to absences, penalties or fines due to certain problems, allowances, income taxes, insurance contributions, and so on. Each of these details is listed systematically and coherently on the pay slips given to employees each month, along with the final amount received by the employee. There are at least three benefits of paying your employees a pay slip.
As Evidence of a Legal Work RelationshipIf you have a company that employs a number of employees, you can make this document a form of a legal cooperative relationship. With routine pay slips on behalf of every employee you employ, the company officially and legally has employees.
Salary slips can also be a clear basis for cooperation that occurs when unwanted problems occur in the future. When there may be individuals who claim their rights as employees, you can ask for the relevant files that have been provided regularly for basic evidence that the person is your employee. If he does not have the slip, then the status of the cooperation can be doubted.
Of course this applies if you as an entrepreneur also carry out the obligation to provide paychecks correctly and on time. For both permanent and non-permanent employees, it is your obligation to provide a salary slip. Isn't a healthy company a company that is transparent and respects its employees?
Estimated Employee Financial Capability Related to Loans or LoansApart from being proof of cooperation, giving slips also allows your employees to make loans or credit to related institutions. Applications for credit and loans usually require a paycheck, as a measure of the financial capacity of your employees. Of course, by providing carefully recorded slip details, you can help employees get credit according to their abilities.
Relevant institutions that will provide credit or loans will usually ask for copies of the salary slips of the last few months to assess the financial capacity of your employees. This is important, so that the credit or loan provided does not exceed the capacity of the employee so that it does not become a burden in the future.
As a basis for correction & monitoring of the salary givenIn addition to the two benefits above, the salary slips given to employees also have other benefits, namely as a basis for correction and supervision of the delivery of wages by the company. Ideally, the recorded details are the real income and deductions that occur in relation to employee wages provided by the company.
If at any time there is a discrepancy between the details and the reality, the employee can file a complaint with the company regarding the discrepancy. This is at the same time supervising the order and regularity of salary payments. Good relations between employees and the company can be established so that everything can be done in a professional and open manner.
Seeing these three benefits, of course the obligation to provide slips is actually not only beneficial for clarity of employee wages but also other benefits for the company.