What Is a Payslip and Why It Matters?

What is a Payslip? Why Is It Important for Employees and Employers?

A payslip is a document detailing an employee's periodic income and the deductions and payments made from it. Through this payslip, issued by the employer, employees can learn how much they receive, what tax and insurance deductions are made, and what their additional payments and deductions are. A payslip is an important document for both employers and employees to fulfill their legal responsibilities.

A payslip is also an official record of an employee's income and deductions during their employment. It ensures regular tax payments, accurate payment of insurance premiums, and the protection of legal rights. Additionally, a payslip may be requested for transactions such as applying for a bank loan.


What Information is Included in a Payslip?

  • Employee Information: This includes personal information such as the employee's name, surname, Turkish ID number, and position at the workplace.
  • Period of Employment: The payslip is issued monthly. The payslip indicates the month and period for which the salary is received.
  • Gross Salary: This is the employee's total salary before all legal deductions. This is the starting value used to calculate net salary.
  • Income Tax: Income tax is the type of tax an employee is obligated to pay to the government based on their earnings.
  • Insurance Premiums: This refers to the amount deducted from the employee's SSI (Social Security Institution) premiums.
  • Unemployment Insurance: This is the deduction made from the employee's insurance premium to provide income security in the event of unemployment.
  • Other Deductions: Loans, membership fees, meal allowances, or similar fees may also be included in the payslip.
  • Net Salary: The amount of salary actually received by the employee, calculated by subtracting all legal deductions from gross salary.
  • Additional Payments: In some workplaces, additional payments may also be included in the payslip. For example, overtime, bonuses, meal allowances, or transportation allowances are shown in this section.
  • Leave Status: Information such as the employee's leave days taken during the year and the remaining leave days can also be found on the payslip.
  • Employer Information: Information such as the employer's name, title, and tax ID number are included on the payslip.


Payslip Example

A simple payslip example is provided below:

This payslip example reveals the employee's net salary after taxes, insurance premiums, and other legal deductions from gross pay. Overtime pay is also included in the total earnings. Such documentation ensures transparent salary calculations and helps both the employee and the employer fulfill their legal obligations.


The Importance of a Payslip

It is a document that officially documents information about an employee's wages and fosters trust and oversight between employers and employees. With this document, employees have the right to know the details of their wages and any legal deductions made. This document can be consulted in the event of any dispute. A payslip also ensures the accurate calculation of an employee's insurance and tax liabilities.


The Importance of Payslips for Employees

Tracking Rights

Thanks to the information contained in the payslip, employees can verify the accuracy of their pay, any deductions made, and whether any additional compensation, such as overtime, has been reflected.

Use in Official Transactions

Payslips are used as proof of income in official transactions; they are required for bank loans, visa applications, lease agreements, and similar situations.

Legal Assurance

Payslips are strong evidence for employees' rights and are considered official documents in labor courts.


Importance for Employers

Meeting Legal Responsibilities

It is an obligation under labor law for employers to issue payslips for each employee and to retain these documents for a specific period.

Transparency in Tax and Social Security Institution (SGK) Inspections

Payslips are essential documents that demonstrate employers' compliance with their tax and insurance obligations during official inspections.

Corporate Reliability

Accurate and timely payslips demonstrate that the employer acts responsibly towards its employees.


Serpil KARAKAYA