Onboarding, payroll and compliance basics (India)

Onboarding

Good onboarding raises retention and gets people productive faster.

• Pre-boarding: welcome email, documents, laptop and accounts ready on day one.
• Day one: a warm welcome, introductions, the first-week plan, a buddy.
• First 30-60-90 days: clear goals, regular check-ins with the manager, training, feedback.
• Documentation: offer acceptance, ID and address proof, PAN, Aadhaar (handled per privacy rules), education and previous employment documents, bank details, nominations for PF and gratuity, policy acknowledgements.

Payroll basics

A typical Indian salary structure (CTC: cost to company):

• Basic salary (often 40–50% of CTC; many statutory calculations are based on it).
• HRA (house rent allowance; partly tax-exempt with rent receipts).
• Special allowance, other allowances.
• Employer PF contribution, gratuity, insurance and variable pay often included in CTC.

Deductions: employee PF (12% of basic, subject to rules), professional tax (state-specific), TDS (income tax deducted at source based on the employee's chosen tax regime and declarations), ESI for eligible lower salaries.

Net (take-home) pay = gross earnings − deductions. Explaining the difference between CTC and take-home pay clearly to candidates prevents offer drop-outs.

Key labour law areas (high level)

India consolidated many labour laws into four labour codes (wages, industrial relations, social security, and occupational safety and health). HR professionals should know the basics of:

• Provident Fund (EPF) and ESI (social security contributions).
• Gratuity: payable after 5 years of continuous service (as per the applicable rules), roughly 15 days of last drawn basic salary per year of service.
• Minimum wages and timely payment of wages.
• Maternity benefit: 26 weeks of paid leave for eligible women employees.
• POSH (Prevention of Sexual Harassment) Act: an Internal Committee in organisations with 10+ employees, awareness training and a clear complaint process.
• Shops and Establishments Acts (state-level working hours, leave, holidays).

Rules and thresholds change, so HR teams check current notifications and consult legal experts. In interviews, showing awareness and the habit of verifying matters more than reciting numbers.

HRMS tools

Keka, Darwinbox, greytHR, Zoho People, SAP SuccessFactors, Workday: they handle employee records, attendance, leave, payroll, performance and self-service. Excel remains essential for reports and reconciliation.

Check yourself

• Explain CTC vs take-home pay to a fresher receiving an offer.
• What does the POSH Act require of a company with 50 employees?
• List the documents you'd collect during onboarding.