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
- Lock attendance and leave for the month.
- Run payroll and check the totals against last month.
- Generate payslips and the bank file.
- 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.
