HR Glossary India

HR Glossary: Indian Payroll, Compliance, and HR Terms Explained

Short, India-first definitions for CTC, EPF, ESI, Professional Tax, TDS, gratuity, Form 16, leave encashment, notice period, and more. Built for HR teams, payroll teams, and employees.

41 India-focused terms 4 categories Direct link per term
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Start with salary, statutory compliance, leave, or attendance clusters. Each link jumps to the full term card below.

Most Searched

Terms Indian HR and Payroll Teams Search Most

The salary, statutory, and compliance terms that show up in offer letters, payslips, and employee questions every month.

Payroll

CTC (Cost To Company)

CTC is the total annual amount a company budgets for an employee, including fixed pay, allowances, bonuses, and employer-side benefits or contributions.

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Payroll

Gross Salary

Gross salary is the total earnings paid to an employee before deductions such as PF, ESI, professional tax, loan recovery, or income tax withholding.

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Payroll

Take-Home Salary

Take-home salary is the amount actually credited to the employee bank account after all payroll deductions are applied.

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Compliance

EPF (Employees Provident Fund)

EPF is a retirement savings and social security scheme in which eligible employers and employees contribute a prescribed share of wages toward long-term savings.

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Compliance

ESI (Employees State Insurance)

ESI is a social security and health insurance scheme that provides medical and related benefits to eligible employees in covered establishments.

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Compliance

Gratuity

Gratuity is a terminal benefit payable to eligible employees as a mark of service tenure, usually when they resign, retire, or leave after completing the qualifying service period.

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Compliance

Professional Tax

Professional tax is a state-level levy charged in certain Indian states on employment or profession, usually deducted through payroll in applicable salary slabs.

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Compliance

TDS (Tax Deducted At Source)

TDS is the tax an employer deducts from salary at source and deposits with the government on behalf of the employee.

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A to Z Directory

Full A to Z HR and Payroll Glossary for India

Click any term to open an India-specific definition, example, and related HR keywords.

A

A Terms

3 terms

HR Operations

Appraisal Cycle

An appraisal cycle is the fixed review period a company uses to assess employee performance, finalize ratings, and decide salary revisions or promotions.

Payroll

Arrears

Arrears are salary amounts paid later for a past period because an increment, revision, correction, or policy change was applied with retrospective effect.

Leave & Attendance

Attendance Regularization

Attendance regularization is the process of correcting attendance records when an employee misses a punch, marks the wrong shift, or needs a justified exception.

B

B Terms

2 terms

Payroll

Basic Salary

Basic salary is the core fixed portion of pay on which several allowances, deductions, and statutory calculations are built.

Payroll

Bonus

Bonus is an additional amount paid over regular salary, either as a statutory payment, festival payout, or performance-linked reward.

C

C Terms

2 terms

Leave & Attendance

Casual Leave

Casual leave is short-duration leave usually used for urgent personal work, brief planned absences, or one-day leave requirements.

Payroll

CTC (Cost To Company)

CTC is the total annual amount a company budgets for an employee, including fixed pay, allowances, bonuses, and employer-side benefits or contributions.

E

E Terms

6 terms

Leave & Attendance

Earned Leave

Earned leave is leave that accumulates over time based on service, attendance, or company leave rules, and is commonly used for planned time off.

Compliance

ECR (Electronic Challan Cum Return)

ECR is the electronic return and contribution filing process used for remitting EPF-related contributions and member wage details to EPFO.

HR Operations

Employee Self Service (ESS)

Employee Self Service is a portal or app where employees can view payslips, apply leave, mark attendance, update profile details, and download tax documents.

Compliance

EPF (Employees Provident Fund)

EPF is a retirement savings and social security scheme in which eligible employers and employees contribute a prescribed share of wages toward long-term savings.

Compliance

EPS (Employees Pension Scheme)

EPS is the pension component linked to EPF contributions for eligible employees under the EPFO framework.

Compliance

ESI (Employees State Insurance)

ESI is a social security and health insurance scheme that provides medical and related benefits to eligible employees in covered establishments.

F

F Terms

3 terms

Payroll

Form 12BB

Form 12BB is the employee declaration format used for claiming eligible deductions and exemptions from salary for TDS calculation purposes.

Payroll

Form 16

Form 16 is the annual certificate issued by an employer showing salary paid and tax deducted at source during the financial year.

Payroll

Full And Final Settlement

Full and final settlement is the final payroll computation done when an employee leaves, covering unpaid salary, leave encashment, recovery, bonus, and other dues.

G

G Terms

2 terms

Compliance

Gratuity

Gratuity is a terminal benefit payable to eligible employees as a mark of service tenure, usually when they resign, retire, or leave after completing the qualifying service period.

Payroll

Gross Salary

Gross salary is the total earnings paid to an employee before deductions such as PF, ESI, professional tax, loan recovery, or income tax withholding.

H

H Terms

1 term

Payroll

HRA (House Rent Allowance)

HRA is a salary component designed to support rent expenses and can influence income tax calculations when employees live in rented accommodation.

L

L Terms

3 terms

Compliance

Labour Codes

Labour Codes refers to the four consolidated labour law codes intended to streamline wage, social security, industrial relations, and occupational safety provisions in India.

Leave & Attendance

Leave Encashment

Leave encashment is the cash payout made against eligible unused leave balance, usually during separation or as part of company policy.

Payroll

LTA (Leave Travel Allowance)

LTA is a salary component intended to support travel expenses for leave journeys and may have tax relevance under applicable rules.

M

M Terms

2 terms

Leave & Attendance

Maternity Leave

Maternity leave is the legally recognized leave provided to eligible women employees around childbirth and related care needs.

Compliance

Minimum Wages

Minimum wages are the legally prescribed wage floors that employers must pay for applicable categories of work, skill level, and location.

N

N Terms

2 terms

Payroll

Net Salary

Net salary is the final amount an employee receives after all applicable payroll deductions have been made from gross salary.

HR Operations

Notice Period

Notice period is the contractual period between resignation or termination communication and the employee's final working day.

O

O Terms

1 term

HR Operations

Onboarding

Onboarding is the structured process of moving a candidate into active employment through documentation, policy acknowledgement, payroll setup, and role readiness.

P

P Terms

5 terms

Compliance

Payroll Compliance

Payroll compliance is the practice of processing salaries while meeting all statutory, tax, wage, recordkeeping, and reporting obligations that apply to the employer.

Payroll

Payslip

A payslip is the salary statement shared with an employee showing earnings, deductions, net pay, and other key payroll details for a pay period.

Compliance

POSH

POSH stands for the prevention of sexual harassment framework that employers must follow to create a safe workplace and handle complaints lawfully.

HR Operations

Probation

Probation is the initial employment period during which the company evaluates performance, conduct, attendance, and fit before confirmation.

Compliance

Professional Tax

Professional tax is a state-level levy charged in certain Indian states on employment or profession, usually deducted through payroll in applicable salary slabs.

S

S Terms

5 terms

Payroll

Salary Structure

Salary structure is the way total compensation is broken into components such as basic salary, HRA, allowances, bonus, employer contributions, and deductions.

Leave & Attendance

Shifts And Shift Allowance

Shift allowance is additional compensation linked to working in a particular shift pattern, such as night shifts, rotating shifts, or difficult operational hours.

Compliance

Shops And Establishments Act

The Shops and Establishments Act is the state-level law framework that governs working conditions for many commercial establishments such as offices, shops, and service businesses.

Leave & Attendance

Sick Leave

Sick leave is leave taken when an employee is unwell, recovering, or medically unfit to work for a temporary period.

Payroll

Special Allowance

Special allowance is a balancing salary component often used in compensation structures after allocating basic salary and named allowances.

T

T Terms

2 terms

Payroll

Take-Home Salary

Take-home salary is the amount actually credited to the employee bank account after all payroll deductions are applied.

Compliance

TDS (Tax Deducted At Source)

TDS is the tax an employer deducts from salary at source and deposits with the government on behalf of the employee.

U

U Terms

1 term

Compliance

UAN (Universal Account Number)

UAN is the permanent account number allotted to EPF members for linking and managing PF records across employers.

V

V Terms

1 term

Payroll

Variable Pay

Variable pay is the portion of compensation that changes based on performance, targets, incentives, commissions, or company-linked outcomes.

FAQ

Common HR Glossary Questions in India

Quick answers to the search queries behind most HR and payroll glossary lookups in India.

What is the difference between CTC, gross salary, and take-home salary?
CTC is the total cost a company spends on an employee, gross salary is earnings before deductions, and take-home salary is the net amount paid after deductions such as PF, ESI, professional tax, or TDS where applicable.
Is PF mandatory for employees in India?
PF applicability depends on establishment coverage and wage conditions under EPF rules. In practice, many Indian employers treat EPF as a standard payroll deduction once the establishment is covered and the employee falls within the applicable rules.
Who is eligible for ESI in India?
ESI generally applies to eligible employees working in covered establishments and drawing wages within the prescribed ESI wage ceiling. Employers use ESI for medical, sickness, maternity, and related social security benefits under the scheme.
When does gratuity become payable?
Gratuity is generally payable to eligible employees after completing the required continuous service period, commonly understood as five years, subject to exceptions and the terms of the Payment of Gratuity Act and related case law.
What is Form 16 used for in payroll?
Form 16 is the annual TDS certificate issued by an employer to employees. It summarizes salary paid and tax deducted at source during the financial year, making it a key document for income tax return filing.
Why is professional tax shown on some salary slips and not others?
Professional tax is a state-level levy and is not applicable in every state or union territory. Whether it appears on a salary slip depends on the employee work location, state rules, and the applicable salary slab.

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