The Definitive HR & Payroll Glossary
Authoritative, machine-readable definitions, mathematical calculation blueprints, and statutory rules for modern HR leaders.
HRMS (Human Resource Management System)
An HRMS (Human Resource Management System) is an integrated software suite that automates end-to-end human resource processes, including employee onboarding, biometric attendance, statutory payroll, leave policies, and performance management.
Cost to Company (CTC)
Cost to Company (CTC) is the total annual expenditure an employer incurs on an employee, comprising gross salary, employer statutory contributions (PF, ESI, Gratuity), allowances, and indirect benefits.
Biometric Attendance System
A biometric attendance system uses unique biological characteristics-such as fingerprints, facial geometry, or iris scans-to record employee clock-in and clock-out timestamps with fraud prevention.
Geofencing Attendance
Geofencing attendance is a location-based digital tracking technology that creates a virtual geographic perimeter around a work site, enabling employees to punch in via mobile only when physically inside the designated zone.
Employees Provident Fund (EPF)
Employees Provident Fund (EPF) is a mandatory social security scheme in India managed by the EPFO, where both employee and employer contribute 12% of basic salary towards retirement savings.
Employee State Insurance (ESI)
Employee State Insurance (ESI) is an integrated social security and health insurance scheme in India mandatory for employees earning a gross monthly wage of ₹21,000 or less.
Gratuity & Payment of Gratuity Act
Gratuity is a statutory monetary lump-sum benefit paid by an employer to an employee upon exit after completing at least 5 years of continuous service in the organization.
House Rent Allowance (HRA) Exemption
HRA Exemption is an income tax deduction under Section 10(13A) of the Indian Income Tax Act that allows salaried employees living in rented accommodation to reduce their taxable salary.
Full and Final (F&F) Settlement
Full and Final (F&F) Settlement is the comprehensive reconciliation process conducted upon an employee resignation or termination to clear all dues, unpaid salaries, leave encashment, gratuity, and asset recoveries.
Applicant Tracking System (ATS)
An Applicant Tracking System (ATS) is recruitment software that automates job posting, candidate resume parsing, interview scheduling, scorecard evaluations, and offer letter rollouts.