The Crew blog

Plain guides to attendance, payroll and Indian statutory compliance, written for business owners and HR teams.

HR and payroll terms

The Indian HR and payroll terms people search for most, explained in a sentence.

Provident Fund (PF)

12% of basic pay plus DA from employee and employer, for retirement savings.

Employee State Insurance (ESI)

Health insurance for employees earning up to ₹21,000 a month.

Professional Tax (PT)

A small state tax on salaries, deducted monthly by slab.

TDS on salary

Income tax the employer deducts from salary every month.

Gratuity

A lump sum paid after 5 years of service under the Gratuity Act.

Labour Welfare Fund (LWF)

A small state contribution from employer and employee for worker welfare.

Shops and Establishments Act

State law on working hours, holidays and registration for shops and offices.

Payment of Bonus Act

The law on the yearly statutory bonus for eligible employees.

Contract Labour Act

Rules for companies that hire workers through contractors.

Cost to Company (CTC)

Everything an employer spends on an employee in a year.

Form 16

The yearly TDS certificate an employer gives each employee.

Full and final settlement

The last payment and paperwork when an employee leaves.

Leave Travel Allowance (LTA)

An allowance for travel on leave, tax-exempt under the old regime.

House Rent Allowance (HRA)

A salary allowance for rent, partly tax-exempt under the old regime.

EDLI

Life insurance for PF members, paid for by the employer.

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