AOZO
HR & Payroll

Leave, comp-off and payroll basics for Indian teams

By the AOZO Team · · 5 min read

The short answer

Clear leave and comp-off rules, accurate attendance, and a repeatable monthly payroll run with the right statutory deductions keep HR calm.

The three pieces

Most HR work in a growing business comes down to attendance, leave and payroll. They depend on each other. Attendance feeds leave, and leave and attendance both feed payroll.

Leave and comp-off

  • Write down each leave type, how it accrues and whether it carries forward.
  • Decide how comp-off is earned, approved and when it expires.
  • Keep a ledger so every balance can be explained.

What goes into payroll

  • Salary structure: basic pay, allowances and other components.
  • Attendance and leave without pay for the period.
  • Statutory deductions such as provident fund, ESI where applicable, professional tax and TDS on salary.
  • Reimbursements and one-time items.

Keep it repeatable

  1. Lock attendance and leave for the month.
  2. Run payroll and check the totals against last month.
  3. Generate payslips and the bank file.
  4. Pay and record it, then file statutory returns on time.

A note on rules

Rates, ceilings and rules vary by state and change over time, including under the new labour codes. Always check the current rules with your accountant or a compliance specialist.

AOZO Teams keeps the directory, attendance, leave with comp-off, shifts and payroll in one workspace, with Indian statutory deductions and a bank batch export.

This article is for general information and is not legal, tax or financial advice. Rules change, so check current requirements with a qualified professional.