SALARY & PAYROLL POLICY

This Salary & Payroll Policy (“Policy”) is framed in accordance with the applicable labour and tax laws of India, including the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Income-tax Act, 1961, the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the Employees’ State Insurance Act, 1948, and other Applicable Law.

This Policy is adopted by {{f1_company_name}}, a company incorporated under the laws of India and having its registered office at {{f2_company_registered_address}} (“Company”), and shall apply to all employees of the Company, unless otherwise specified in their employment documents.

1. PURPOSE

1.1 The purpose of this Policy is to define the principles, structure, processing, and compliance framework governing salary payment and payroll administration of the Company.

2. APPLICABILITY

2.1 This Policy shall apply to all permanent, probationary, fixed-term, and confirmed employees of the Company.

2.2 Consultants, interns, and contractual staff shall be governed by the terms of their respective agreements unless expressly covered under this Policy.

3. SALARY STRUCTURE

3.1 The salary of an employee shall comprise fixed and variable components, as applicable, including but not limited to:

(a) Basic Salary;
(b) House Rent Allowance (HRA);
(c) Special Allowance;
(d) Conveyance / Transport Allowance;
(e) Medical Allowance;
(f) Incentives, bonuses, or performance-linked pay (if applicable);
(g) Any other component as determined by the Company.

3.2 The detailed salary breakup shall be communicated through the Offer Letter, Appointment Letter, or separate compensation annexure.

4. PAYROLL CYCLE AND PAY DATE

4.1 Salary shall be processed on a {{f3_payroll_cycle_monthly_bi_weekly}} basis.

4.2 Salary shall ordinarily be credited on or before {{f4_salary_credit_date}} of each payroll cycle, subject to banking and statutory timelines.

4.3 In case the scheduled pay date falls on a non-banking day, salary shall be credited on the preceding working day or next working day, as determined by the Company.

5. MODE OF PAYMENT

5.1 Salary shall be paid through {{f5_mode_of_payment_bank_transfer}} to the employee’s designated bank account.

5.2 Employees shall ensure accurate and updated bank details with the Company. The Company shall not be responsible for delays caused due to incorrect bank information.

6. STATUTORY DEDUCTIONS

6.1 The following statutory deductions shall be made from salary, as applicable:

(a) Income Tax (TDS);
(b) Employees’ Provident Fund (PF);
(c) Employees’ State Insurance (ESI);
(d) Professional Tax;
(e) Any other deduction mandated under Applicable Law.

6.2 Statutory contributions by the Company shall be deposited within prescribed timelines.

7. OTHER DEDUCTIONS AND RECOVERIES

7.1 The Company may deduct amounts towards:

(a) loss of pay due to unauthorised absence;
(b) recovery of advances, loans, or excess payments;
(c) damage or loss of Company property due to employee negligence;
(d) any other lawful deduction with employee authorisation or as permitted under Applicable Law.

8. ATTENDANCE AND PAYROLL LINKAGE

8.1 Payroll processing shall be linked to attendance records, leave records, and approved loss of pay (LOP), as per the Attendance & Leave Policies.

8.2 Any discrepancy in attendance or leave may impact salary for the relevant payroll cycle.

9. INCENTIVES, BONUS, AND GRATUITY

9.1 Incentives and bonuses, if any, shall be paid in accordance with Company policy and performance criteria.

9.2 Statutory bonus and gratuity, where applicable, shall be governed strictly by Applicable Law.

10. PAYSLIPS

10.1 Payslips shall be issued to employees for each payroll cycle in physical or electronic form.

10.2 Payslips shall contain details of earnings, deductions, and net salary, in compliance with Applicable Law.

11. PAYROLL ERRORS AND DISPUTES

11.1 Employees shall report any discrepancy in salary or payslip within {{f6_dispute_reporting_period}} from receipt of the payslip.

11.2 The Company shall examine and resolve genuine payroll discrepancies within a reasonable time.

12. CONFIDENTIALITY

12.1 Salary and payroll information shall be treated as confidential.

12.2 Employees shall not disclose their salary details or payroll data of others without lawful authority.

13. FULL AND FINAL SETTLEMENT

13.1 Upon cessation of employment, full and final settlement shall be processed in accordance with Applicable Law and Company policy, subject to clearance of dues and exit formalities.

14. AMENDMENT OF POLICY

14.1 The Company reserves the right to amend, modify, or update this Policy at any time.

14.2 Any amendment shall be effective from the date of communication or publication.

15. GOVERNING LAW AND JURISDICTION

15.1 This Policy shall be governed by and construed in accordance with the laws of India.

15.2 The courts at {{f7_city}}, India, shall have exclusive jurisdiction, subject to arbitration where applicable.

16. ARBITRATION

16.1 Any dispute arising out of or in connection with this Policy shall be resolved by arbitration in accordance with the Arbitration and Conciliation Act, 1996.

16.2 The seat and venue of arbitration shall be {{f8_city}}, India.
16.3 The arbitration proceedings shall be conducted in the English language by a sole arbitrator appointed in accordance with the said Act.

17. ACKNOWLEDGEMENT

All employees are required to read, understand, and comply with this Policy.

For and on behalf of
{{f1_company_name}}

Authorized Signatory: _______________________
Name: {{f9_authorized_signatory_name}}
Designation: {{f10_authorized_signatory_designation}}
Date: {{f11_date}}

EMPLOYEE ACKNOWLEDGEMENT

Employee Name: {{f12_employee_name}}
Employee ID: {{f13_employee_id}}
Signature: _______________________
Date: {{f14_date}}

Salary & Payroll Policy

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