HR Glossary

Clear, India-focused definitions of the HR, payroll and compliance terms that come up most often when running people operations. Each entry is written for HR leaders, founders and finance teams who need a fast, accurate answer — and links to the deeper guides where it helps.

HRMS

A Human Resource Management System unifies HR records, payroll, attendance and compliance in one platform.

HCM

Human Capital Management is the broader strategy of treating people as assets — covering HRMS plus talent and workforce planning.

ATS (Applicant Tracking System)

Software that stores candidate profiles, parses resumes and manages the hiring pipeline from source to offer.

CTC (Cost to Company)

The total annual cost an employer bears for an employee, including pay, allowances, employer PF/ESI, gratuity and benefits.

Form 16

A TDS certificate issued by employers under Section 203 of the Income Tax Act, summarising salary paid and tax deducted.

Form 24Q

The quarterly TDS return employers file on salaries, detailing tax deducted and deposited each quarter.

HRIS

A Human Resource Information System — the data backbone for employee records, payroll history and benefits.

ESS (Employee Self Service)

A portal or app that lets employees view payslips, mark attendance, apply for leave and update personal data themselves.

Gratuity

A lump-sum end-of-service payment under the Payment of Gratuity Act 1972 for 5+ years of continuous service.

ECR

Electronic Challan-cum-Return — the monthly EPF filing combining employee-wise contribution data and payment.

FBP (Flexible Benefit Plan)

A tax-efficient salary structure letting employees allocate part of their CTC into reimbursable, less-taxed heads.

Attrition

The rate at which employees leave an organisation over a period — voluntary and involuntary.

Retention

The inverse of attrition — how well an organisation keeps its people over time.

Onboarding

The 30–90 day process of integrating a new hire into the role, team and organisation.

Offboarding

The structured exit process — F&F, asset return, knowledge transfer, statutory closures.

Induction

Week-1 orientation introducing a new joiner to policies, systems and culture.

PIP (Performance Improvement Plan)

A structured plan giving an under-performing employee a defined window to improve.

Gross Salary

Total pay before tax and statutory deductions — basic, HRA, allowances and bonuses.

Net Salary

Take-home after TDS, PF, PT and other deductions are removed from gross.

In-hand Salary

Monthly amount that actually lands in an employee’s bank account — same as net salary.

Basic Pay

The fixed core component of salary — anchor for PF, gratuity, HRA and bonus calculations.

HRA (House Rent Allowance)

Salary component for employees paying rent; partially exempt under Section 10(13A).

LTA (Leave Travel Allowance)

Travel reimbursement for employee and family within India; exempt under Section 10(5).

Special Allowance

The residual fully-taxable component balancing an Indian salary structure.

Bonus

Statutory bonus under the Payment of Bonus Act 1965 — 8.33% to 20% of eligible wages.

KPI (Key Performance Indicator)

A measurable value tracking how effectively a goal is being achieved.

KRA (Key Result Area)

A broad area of responsibility a role owns; KPIs measure performance within it.

OKR vs KPI

OKRs are objectives + key results; KPIs are ongoing metrics. They complement, not compete.

Performance Appraisal

A structured periodic review of an employee’s performance against goals.

360-degree Feedback

Multi-rater review gathering input from manager, peers, direct reports and self.

See it in action

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