Glossary

This glossary defines key terms, abbreviations, and concepts used throughout the Udyamo HRMS User Guide. Terms are organized alphabetically for quick reference.

Accrual

The gradual accumulation of leave balance over time. For example, an employee may accrue 1.5 days of Privilege Leave per month, resulting in 18 days over a full year. Accrual rules are defined in leave policies.

Annual CTC

See Cost to Company (CTC).

Attendance Policy

A set of rules that govern how attendance is tracked and evaluated for employees. Attendance policies define acceptable check-in/check-out times, grace periods for late arrivals, half-day thresholds, and penalties for absences. Policies are assigned to employees based on their department, office, or shift.

Bank Advice

A file or report generated by the payroll system that lists all salary payments for a given payrun period. The bank advice file is uploaded to the organization's bank to process bulk salary transfers to employee bank accounts. Formats vary by bank (typically CSV or Excel).

Basic Pay

The fixed, base component of an employee's salary, before any allowances or deductions are applied. Basic pay is typically 40-50% of the CTC and serves as the calculation basis for several statutory components, including EPF, gratuity, and leave encashment.

Carry-Over

The transfer of unused leave balance from one fiscal year (or leave period) to the next. Carry-over limits are configured in the leave policy — for example, a policy may allow up to 10 days of Privilege Leave to be carried forward. Any balance exceeding the carry-over limit is forfeited or encashed, depending on the policy.

Check-In

The act of recording an employee's arrival at work. In Udyamo HRMS, check-in can be performed via the web application, a biometric device, facial recognition, or the MS Teams bot. The check-in time is used for attendance calculation and overtime tracking.

Check-Out

The act of recording an employee's departure from work. Check-out captures the end of the work day and is used to calculate total hours worked. Missed check-outs may require manual correction by an administrator.

Compensatory Off (Comp Off)

A paid day off granted to an employee who has worked on a scheduled holiday or weekly off day. Compensatory off is earned (not allocated in advance) and typically has an expiry period within which it must be used.

Cost to Company (CTC)

The total annual expenditure an organization incurs for an employee. CTC includes gross salary (basic pay + all allowances), employer contributions to EPF and ESI, gratuity provisions, and any other benefits. CTC is the headline compensation figure used in offer letters and HR reporting.

DA (Dearness Allowance)

A salary component designed to offset the impact of inflation on employees' purchasing power. DA is calculated as a percentage of basic pay and is common in government and public-sector organizations. In the private sector, DA may be included or substituted by other allowances.

Deduction

Any amount subtracted from an employee's gross pay to arrive at net pay. Deductions include statutory items (EPF employee contribution, ESI employee contribution, Professional Tax, TDS) and non-statutory items (loan EMIs, advance recovery, voluntary PF contributions).

Department

An organizational unit that groups employees by function or business area (e.g., Engineering, Human Resources, Finance, Sales). Departments are used for filtering, reporting, leave policy assignment, and approval routing.

Designation

The job title or position held by an employee within a department (e.g., Software Engineer, HR Manager, Accounts Executive). Designations may be linked to specific salary structures, leave policies, or notice period configurations.

Earning

Any amount added to an employee's compensation. Earnings include basic pay, HRA, DA, special allowances, bonuses, overtime pay, and other variable components. Total earnings before deductions constitute the gross pay.

ECR (Electronic Challan-cum-Return)

The monthly return filed by employers with the EPFO (Employees' Provident Fund Organisation) that details employee-wise PF contributions. The ECR is uploaded to the EPFO Unified Portal and triggers the PF payment challan.

EMI (Equated Monthly Installment)

A fixed monthly payment made by an employee to repay a loan. In Udyamo HRMS, EMIs for employee loans are automatically deducted from salary during payroll processing. Each EMI consists of principal and interest components (if interest is applicable).

Employee ID

A unique alphanumeric identifier assigned to each employee within the organization. The Employee ID is used across all modules — attendance, leave, payroll, and reporting — as the primary reference for the employee. It is distinct from the system-generated database ID.

EPF (Employees' Provident Fund)

A mandatory retirement savings scheme under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Both the employee and employer contribute 12% of the employee's basic pay (plus DA, if applicable) to the fund. The employee's contribution goes to the EPF account; the employer's contribution is split between EPF (3.67%) and EPS (8.33%).

ESIC (Employees' State Insurance Corporation)

The statutory body that administers the Employees' State Insurance (ESI) scheme — a social security program providing medical, sickness, maternity, disability, and dependent benefits. Applicable to employees earning below the ESI wage ceiling.

ESI (Employees' State Insurance)

A social security scheme providing medical and cash benefits to employees and their dependents. Employees contribute 0.75% and employers contribute 3.25% of the employee's gross wages. Applicable to employees earning up to the ESI wage ceiling (currently INR 21,000 per month).

Facial Recognition

A biometric attendance method that identifies employees by scanning their facial features. Udyamo HRMS supports facial recognition through compatible attendance devices and the mobile application, providing a contactless check-in/check-out mechanism.

Fiscal Year

The 12-month accounting period used by the organization for financial reporting, tax calculations, and leave year processing. In India, the standard fiscal year runs from April 1 to March 31. Udyamo HRMS uses the configured fiscal year for payroll, TDS calculations, and leave year-end processing.

Full-and-Final Settlement (F&F)

The financial closure process when an employee exits the organization. The F&F calculation accounts for all pending earnings (salary, leave encashment, gratuity, reimbursements) and all recoveries (outstanding loans, advances, notice period buyout). The net amount determines the final payment or recovery.

Geo-Fencing

A location-based attendance feature that restricts employee check-in to a defined geographic area around the office. When geo-fencing is enabled, the system uses the employee's device GPS to verify they are within the permitted radius before accepting the check-in.

Gratuity

A statutory benefit payable to employees who have completed five or more years of continuous service, as per the Payment of Gratuity Act, 1972. Gratuity is calculated as: (Last drawn basic + DA) x 15 x (Years of service) / 26. The current maximum gratuity payable under the Act is INR 20,00,000.

Gross Pay

The total earnings of an employee before any deductions are applied. Gross pay is the sum of all earning components — basic pay, HRA, DA, special allowances, overtime pay, bonuses, and other variable earnings for the payroll period.

Half Day

An attendance status indicating that the employee worked for only half of the scheduled shift duration. Half days may be voluntary (half-day leave) or marked by the system when the employee's working hours fall below the full-day threshold but above the absent threshold defined in the attendance policy.

Holiday

A calendar date on which employees are not required to work, as declared by the organization. Holidays include national holidays (Republic Day, Independence Day), state-specific holidays, and company-specific days off. Holidays are configured in the holiday calendar and affect attendance tracking, leave calculations, and notice period computations.

HRA (House Rent Allowance)

A salary component provided to employees to meet rental housing expenses. HRA is partially or fully exempt from income tax under Section 10(13A) of the Income Tax Act, subject to conditions. HRA is typically calculated as a percentage of basic pay (commonly 40-50%).

IFSC (Indian Financial System Code)

An 11-character alphanumeric code assigned by the Reserve Bank of India to every bank branch in India. The IFSC is required in employee bank details for processing salary transfers via NEFT, RTGS, or IMPS. Format: first four characters identify the bank, fifth is 0, and the last six identify the branch.

Leave Balance

The number of leave days available to an employee under a specific leave category at any given point. Leave balance is determined by the leave policy (accrual rules, carry-over), reduced by approved leave consumption, and may increase through accruals or carry-over credits.

Leave Category

A classification of time off available to employees (e.g., Casual Leave, Sick Leave, Privilege Leave, Maternity Leave). Each leave category has a name, type (paid or unpaid), and is associated with leave policies that define entitlement, accrual, and usage rules.

Leave Policy

A set of rules governing how leave is earned, consumed, and managed for a specific leave category. Leave policies define annual entitlement, accrual frequency, carry-over limits, maximum accumulation, encashment eligibility, and other leave behavior rules.

LOP (Loss of Pay)

A payroll deduction that occurs when an employee is absent without available paid leave balance. LOP days reduce the employee's gross pay on a pro-rata basis: the salary is calculated for actual paid days (working days minus LOP days). LOP may also result from unapproved absences or exhausted leave balances.

Net Pay

The amount credited to the employee's bank account after all deductions are subtracted from gross pay. Net Pay = Gross Pay - (EPF + ESI + Professional Tax + TDS + Loan EMI + Other Deductions). This is the take-home salary.

Notice Period

The duration an employee must continue working after submitting their resignation, as defined by the employment contract and the organization's resignation settings. Common notice periods in India range from 30 to 90 days. The notice period allows the organization to plan for knowledge transfer and replacement hiring.

Off-Cycle Payroll

A payroll run conducted outside the regular monthly payroll schedule. Off-cycle payrolls are used for one-time payments (bonuses, incentives), salary corrections, arrears, or final settlement payouts for departing employees.

Office

A physical location or branch where employees are based. Offices are configured with an address, timezone, and may have location-specific settings (holiday calendars, professional tax slabs, attendance policies). Employees are assigned to one or more offices.

One-Time Payment

A non-recurring payment made to an employee outside the regular salary structure. Examples include performance bonuses, festival allowances, referral bonuses, or ad-hoc reimbursements. One-time payments are typically processed through off-cycle payroll.

Overtime

Hours worked by an employee beyond their scheduled shift duration. Overtime may be voluntary or mandatory and is subject to approval. Overtime compensation is calculated based on the overtime policy (e.g., 1.5x or 2x the hourly rate). Overtime requests are submitted by employees and approved by managers.

PAN (Permanent Account Number)

A 10-character alphanumeric identifier issued by the Indian Income Tax Department to individuals and entities. PAN is mandatory for salary payments exceeding the taxable threshold and is used for TDS filing, Form 16 generation, and income tax return filing. Format: ABCDE1234F.

Pay Schedule

The frequency at which an organization processes payroll and pays employees. The most common pay schedule in India is monthly (typically at the end of each calendar month). Udyamo HRMS supports monthly payroll processing.

Payroll Record

The detailed salary calculation for a single employee for a specific payroll period. Each payroll record contains the employee's earnings (each component), deductions (each component), gross pay, net pay, LOP days, paid days, and any special adjustments.

Payrun

The process of calculating and finalizing salaries for all employees for a given payroll period. A payrun involves computing each employee's earnings and deductions, applying statutory rules, generating payroll records, and producing payslips and bank advice files. See Chapter 28: Running Payroll.

Payslip

A document issued to each employee after a payrun that itemizes their earnings, deductions, and net pay for the payroll period. Payslips are accessible through the employee self-service portal and can be downloaded as PDF files.

Permission

A granular access right assigned to a role that determines what actions a user can perform in the system. Examples include "can approve leave," "can run payroll," "can view salary reports," and "can manage employees." Permissions are grouped into roles for easier administration.

Professional Tax (PT)

A state-level tax levied on salaried individuals and professionals in India. Professional tax rates and slabs vary by state. The employer is responsible for deducting PT from the employee's salary and remitting it to the respective state government. The maximum PT in any state is INR 2,500 per year.

Pro-Rata

A proportional calculation based on the number of days or months actually worked versus the full period. Pro-rata calculations are used for salary (when an employee joins or leaves mid-month), leave accrual (when joining mid-year), and other time-dependent computations.

Reimbursement

A payment made by the organization to an employee for expenses incurred on behalf of the company. Reimbursement categories include travel, medical, communication, and other business expenses. Employees submit claims with receipts, which are reviewed and approved before disbursement.

Resignation

A formal notice by an employee of their intention to leave the organization. In Udyamo HRMS, resignations follow a workflow: submission, review (pending), approval or rejection, notice period, offboarding, and completion. See Chapter 39: Resignations & Notice Period.

Role

A named collection of permissions that defines what a user can do in Udyamo HRMS. Standard roles include Administrator, HR Manager, Team Manager, and Employee. Custom roles can be created with specific permission combinations. See Chapter 9: Roles & Permissions.

Salary Component

An individual element of an employee's compensation structure. Components are classified as earnings (basic pay, HRA, DA, special allowance, bonus) or deductions (EPF, ESI, PT, TDS, loan EMI). Each component has a name, type, calculation method (fixed or percentage-based), and statutory/non-statutory classification.

Salary Structure

A template that defines which salary components apply to a group of employees and how each component is calculated relative to the CTC. For example, a salary structure might specify that Basic Pay is 40% of CTC, HRA is 20% of CTC, and Special Allowance is the remaining balance. Salary structures are assigned to employees based on department, designation, or grade.

Self-Service

The capability for employees to perform common HR tasks themselves through the Udyamo HRMS web portal or MS Teams bot, without requiring HR staff intervention. Self-service actions include applying for leave, viewing payslips, submitting reimbursements, updating personal details, and checking attendance records.

Shift

A defined work schedule specifying the start time, end time, and break duration for a group of employees. Organizations may have multiple shifts (e.g., Day Shift: 9:00 AM - 6:00 PM, Night Shift: 10:00 PM - 7:00 AM). Shifts are assigned to employees and used for attendance tracking and overtime calculations.

SSO (Single Sign-On)

An authentication mechanism that allows users to log in to Udyamo HRMS using credentials from an external identity provider (Google Workspace or Azure Active Directory) instead of a separate Udyamo HRMS password. SSO simplifies login, reduces password fatigue, and enables centralized access control. See Chapter 45: Single Sign-On.

Statutory Bonus

A mandatory annual bonus payable to employees under the Payment of Bonus Act, 1965. The Act applies to establishments with 20 or more employees and to employees earning up to INR 21,000 per month. The minimum bonus is 8.33% of the employee's salary or INR 100, whichever is higher. The maximum bonus is 20% of the employee's salary.

Statutory Component

A salary component mandated by Indian labor law that must be included in the payroll calculation. Statutory components include EPF (employer and employee contributions), ESI (employer and employee contributions), Professional Tax, and TDS. These components have government-defined calculation rules, rates, and filing requirements.

Subscription

The licensing agreement between an organization and Udyamo HRMS that defines the plan (Free Trial, Basic, Pro, Enterprise), the number of employee licenses, the billing term, and the features available. See Chapter 47: License Management.

TDS (Tax Deducted at Source)

Income tax deducted by the employer from the employee's salary before payment, as mandated by Section 192 of the Income Tax Act, 1961. TDS is calculated based on the employee's projected annual taxable income and the applicable tax slab (Old Regime or New Regime). Monthly TDS is deposited with the government and reported through quarterly TDS returns (Form 24Q).

TOTP (Time-based One-Time Password)

A two-factor authentication method that generates a 6-digit code that changes every 30 seconds. The code is produced by an authenticator app (Google Authenticator, Microsoft Authenticator, Authy) using a shared secret key. TOTP provides an additional layer of security beyond passwords. See Chapter 44: Two-Factor Authentication & OTP.

Two-Factor Authentication (2FA)

A security mechanism that requires two forms of verification to log in: something you know (password) and something you have (TOTP code from an authenticator app). 2FA significantly reduces the risk of unauthorized access from stolen passwords.

UAN (Universal Account Number)

A 12-digit unique number assigned to each EPF member by the EPFO. The UAN remains constant throughout the employee's career, even when they change employers. It links all member IDs (one per employer) under a single umbrella number, enabling seamless PF transfer and tracking.

Work Week

The organization's standard working days configuration. A work week defines which days of the week are working days and which are weekly off days. Common configurations in India include Monday-Friday (5-day), Monday-Saturday (6-day), or alternate Saturdays (5.5-day). The work week affects attendance tracking, leave calculations, and notice period computation.

Worker Type

A classification that distinguishes between regular employees and external workers. Udyamo HRMS supports two worker types: Employee (on the organization's payroll, subject to all statutory deductions) and Contractor (external worker, may be excluded from standard payroll and statutory compliance).