A-Z Compliance Glossary
Payroll, labour law and statutory compliance come with their own vocabulary — here's what the common terms actually mean, in plain language, with a few HR terms included along the way.
A to Z
Every Term, in Plain Language
Payroll, statutory and HR vocabulary — defined the way we would explain it on a call.
Audit Trail
The chronological list of actions performed in the payroll or compliance system.
Arrears
Amounts owed to employees from prior periods due to salary changes or corrections.
Allowance
A fixed addition to salary — HRA, conveyance, medical — paid on top of basic pay.
Cost to Company (CTC)
The total amount an employer spends on an employee's employment.
Contractor Compliance
Ensuring third-party vendors follow labour regulations.
Compliance Audit
A structured review of payroll and statutory records against current law.
Employee State Insurance (ESI)
A statutory program providing medical and financial benefits.
Employee Lifecycle
All employment stages from recruitment through final settlement.
Earnings
The gross components of pay before any statutory deduction is applied.
ESOP
Employee Stock Option Plan — the right to buy company shares at a set price later.
Factory Act Compliance
Adherence to manufacturing facility regulations.
Full & Final Settlement
Resignation procedures including pending salary and leave encashment.
Form 16
The annual TDS certificate an employer issues showing salary paid and tax deducted.
Gratuity
A lump sum payment for long-service employees.
Gross Salary
Total salary before deductions — the starting figure for every payslip calculation.
Gig Worker Compliance
Statutory obligations that apply to platform and gig-economy workers.
Labour Welfare Fund
A statutory employer/employee contribution.
Labour Law Compliance
Meeting the full set of central and state employment law obligations.
Leave Encashment
Payment for unused earned leave, typically at exit or year-end.
Provident Fund
A mandatory employer/employee savings contribution.
Professional Tax
A state-mandated employee deduction.
Payroll Processing
The end-to-end cycle of calculating, deducting and disbursing salary.
Payroll Outsourcing
Handing the payroll process to a specialist partner like PayrollStaff.
Payslip
The itemized statement of an employee's earnings and deductions for a period.
Statutory Compliance
Following government-mandated laws and reporting.
Salary Structuring
Designing the mix of basic pay, allowances and benefits within a CTC.
Tax Deducted at Source (TDS)
Advance salary tax withholding.
Take-Home Salary
Net compensation after all deductions.
Timesheet
The record of hours or attendance a payroll cycle is calculated against.