A payslip is a receipt made by an employer to an employee on payday. It outlines earning, deductions, and net pay for certain amount of time. Run of the mill payslips consist of gross salary, tax deductions, pension contributions and bonuses/overtime if applicable. They are relevant for financial transparency for helping employees understand their compensation. Because payslips also act as proof of income, they can be used in applying for loans, mortgages or leasing property. Precise payslips allow following labor laws and preventing wage disputes between employers and employees.