Au Group

Salary Payment Process

Process Note

Attendance Process:-
Biometric System:-
1. Attendance will be punched in Biometric machine only. We will issue an employee code of
new employees to the IT department on the same day of joining and IT department will enrol
all the new employees within 2 days of joining and employee will punch the attendance in
the Biometric Machine based on the Code. If in any circumstances Biometric machine is not
working, employees need to regularize attendance through HRMS Software.
Employees handling multiple branches in a location should be registered on the biometric
machines of all the locations in their territory. (if someone looks after Pune, Pimpri,
Narayangaon and Baramati, then his finger print should be valid at all these branches and
attendance should be marked at all these locations)
2. Those employees having problems in fingers related to punching or any other technical issues
due to which they have taken a PIN number for marking their attendance in the biometric
devices should take a prior approval from the HOD and HR mentioning the reason for not
punching in the biometric device.
3. All those employees who are on field should mark their attendance in HRMS as “On Duty”
specifying the place, reason & work. The supervisor should check and approve the requests
raise by the subordinate. Employees who mark OD in HRMS should also mark their presence
in the office on a daily basis through the biometric machine whenever they reach the office.
4. List of employees who mark OD for the entire month should be shared with their supervisors
by HR.

Non- Biometric System:-

1. Locations where Biometric machine is not installed, employee need to mark attendance
through HRMS. Each employee will be allotted ID and Password for HRMS.
2. Employee need to compulsorily mark attendance in HRMS system.
3. All those employees who are on field should mark their attendance in HRMS as “On Duty”
specifying the place, reason & work. The supervisor should check and approve the requests
raise by the subordinate.
4. Updated list of locations where Biometric machines are not installed should be shared by IT
with Payroll and Audit teams on a monthly basis.

Attendance Regularization:-
1. In case employee not able to punch attendance in Biometric system or employee wanted
to regularize attendance for any other reason, they need to regularize attendance through
HRMS system only.
 2. Attendance regularization will be approved by reporting Head of the employee through
HRMS
3. Employee need to coordinate with reporting head for attendance approval.
4. Un-approved attendance regularization will be treated as absent and the salary for the
days not regularized will be put on hold till regularization and will be paid in next month’s
salary as arrear.
5. In case employee is on tour, Training or on official duty, employee need to update the
same in HRMS as “On Duty” before going on tour, training or official work.

Leave Intimation/ Approval:-

1. Employee wanted to take leave need to raise request through HRMS system in advance (if
leave is pre-planned).
2. Unplanned leaves also need to be requested through HRMS. Unplanned / not intimated leave
can be requested on resuming the duty after leave.
3. Non Intimation of leave through HRMS will be result in to absent, and HR will not release the
salary for that day. So, all the leaves (PL/CL) should be updated in HRMS till 26 th day of the
month.
4. Leave will be approved at two level, one by Reporting Head and second by next reporting
Head.
5. Employee need to coordinate with approving authorities for approval of leaves in HRMS
System.
6. Once the salary has been deducted for non-intimation of leave, salary will be released in next
month as arrear salary, so it’s an employee’s responsibility to get their leaves approved. After
1 month, the company will not be liable to pay the deducted salary.
7. HR will not take any approval from reporting manager or business head for non-intimation of
leave.
8. Half day leave also has to be raised through HRMS.

Approvers Responsibility:-
1. All the approving authorities will have to ensure that all attendance regularization and leave
request are approved on time.
2. Approving Authority will check the request on daily basis and clear all approvals regularly to
avoid last day congestions.

Late Arrival Policy:-

Arrival after 9:45 AM till 1:30 PM Half Day Absent
Arrival after 2:00 PM Full Day Absent
Leaving after 2:00 PM and before 6:15 PM Half Day Absent
Leaving before 1:30 PM Full Day Absent
Attendance Retrieval by HR for Salary Processing:-
For processing of Salary, HR department considers the attendance data till 25th (from 26th of
the previous month) of the month for which the salary is processing. For example Salary for
the month of Jun 2015 is calculated on the basis of 26 th May 2015 to 25th Jun 2015
attendance date.

Note:- Employees are strictly asked to mark & get approve all their attendance (AR/CL/PL/HD/OD)
till the 26th day (EOD) of every month for the purpose of salary processing but the HR
Payroll Team considers 2 days extension as a cushion to get all the pending attendance
approved and extracts the dump file after 2 days.

Salary Processing:-
1. HR Department on monthly basis prepares salary for each employee based on their final
attendance sheet as prepared by the Dump file from HRMS and manual working done by the
HR payroll team for below adjustments:-
 Marking leaves of day offs/ holidays falling between the leave duration of an employee
during the month, as current system does not capture these details and there is not
mechanism to correct it in system therefore it is manually corrected.
 Marking absent of day offs/ holidays falling between the time duration during which
the employee was absent.
 Removing day offs and holidays considered in net paid days of those employees who
were regularly absent.
 Deducting salary of advance days from the net paid days of those employees who
joined before 25th and were regularly absent till 25th of that month.
The data should be segregated into employees whose salary is directly paid as per HRMS and
those where adjustments have been done so that it becomes easier to check and possibilities
for errors are minimized.

2. The attendance sheet as prepared by the HR payroll team member should be properly
checked/ verified by the other HR payroll team member on sample basis as per Maker-
Checker concept and it should be properly documented.
3. A summary sheet of the total no. of employees, total net paid days, amount of salary
(company wise) and bank wise bifurcation for payment of salary should be prepared and
properly signed off by HR for each lot of payment of salary. As per below format:

Total no. Sum of Total Average Total Salary Paid Avg. Salary per
Name of Company of Net Paid Salary Salary Last Month Emp. Last Month
the Bank Name employees Days Paid Per Emp. (Same Cycle) (Same Cycle)
 4. Accounts department send data on 26th of every month to HR for deductions from employee
(Mediclaim, CUG, Loan/ advance from the company, etc.). Data is received from the accounts
team; the HR team takes the data as it is without making any changes.
5. Once Salary is prepared by the HR Payroll Team, they will get it audited from the Internal
Auditors on the last day of every month. The auditor should also check/ audit that the bank
account details with cancelled cheques of all the newly joined employees and the employees
who have changed their bank accounts during the month.
6. 1 person from Accounts department will come at the HR payroll department for preparing
the transaction sheet of the salary (Company wise & mode of payment wise).
7. The transaction sheet is again checked by the Banking Team in totality at the time of salary
payment.
8. All the employees involved in Salary Processing need to ensure the confidentiality of
Employees Salary, they will not share the detail of individual employee salary with anyone.
9. The deductions under PF, ESIC, Professional Tax, TDS, should be timely deposited with the
statutory authorities and the returns/ compliance of the same should also be
furnished/complied within time limits (due dates). We should have a table of the dates here
for all statutory compliances along with formats applicable and responsible units /
departments.

SN Deduction/ Due date of Due date for Responsible units/department

contributio Deposition furnishing
n return
1. TDS 07th of the next 15th July, 15th Accounts team – Mahaveer dhoot. (Tax
month and 30th Oct, 15th Jan payment) & for Au housing Rajanish
April for the and 15th May Mukul (Tax payment)
month of March. HR Team – Mukul Kumawat (Return
Filling)

2. Provident 15th of the next NA HR Payroll Team – Mukul Kumawat

fund month
3. Profession 15th of the next NA HR Payroll Team – Mukul Kumawat
al tax month
4. ESIC 21st of the next NA HR Payroll Team – Mukul Kumawat
month
5. LWF Statewise NA
different due
dates

Petrol & Servant Allowances:-

 All those employees who are provided with Petrol & Servant Allowances needs to submit all
the supporting documents and declarations to claim the expenses incurred in these heads on
or before 31st March, every year.

TDS declaration/ deduction:-

All employees are required to submit the declarations on or before the end of the 1 st month
of the FY. All the documents related to the declarations. HR is responsible for entering all the
data as per the supporting documents submitted by the employees and will deduct TDS
accordingly.
It is the responsibility of the employees to submit all the supporting documents for claiming
deductions on or before 15th January, and if not submitted on time, then it is the
responsibility of HR to deduct TDS accordingly.
For all those employees who joined after 01st April of the current FY, are required to give a
declaration in Form 12B mentioning all the incomes that they earned and tax deducted by the
previous employer & from other sources till the date of joining.

Payment of Salary:-
1. HR should take the bank account details of all the employees, if bank account detail not
available till 25th of the month then the salary for that month will be paid through cheque till
details of bank account are not provided.
2. All the employees need to send a cancelled cheque of their bank account to HR Department.
Although, employees whose bank account is opened in HDFC Bank, Jaipur through Au are not
required to provide the cancelled cheque as the details are confirmed by HDFC Bank itself
before the month end.
3. Salary for HDFC Bank Account will be transferred online in employee account and Salary for
other Banks will be paid through NEFT process.

Payment Dates:-
1st lot of salary: - Salary of all the existing employees as well as all the newly joined employees
whose documents are completed till 25th day of the month.
Through Transfer HDFC & NEFT: - 1st of Every Month
Through Cheque: - 2nd of Every Month
Note: - Salary for new employees released only if documents are completed and audited on or
before 25th of the month.
2nd lot of salary: - Newly joined employees whose documents are completed on or after 26th day till
2nd day of next month. Salary of 2nd lot should be released on 10th day of every month through
cheque only.
Approvals:-
Regarding irregularities in the attendance of all M-7 and above employees, an excel sheet of the
same is sent to the HR PMC team.
HR PMC team calls to these employees and take remarks against each irregularity in the attendance
and then send the file back to HR payroll team. Respective employee should provide mail
confirmation of his attendance / leaves before it is approved by HR head.
After that, HR payroll team takes approval from the HR Head and then release salary accordingly.
Adjustment/ Deductions from Salary:-
List of Adjustment/Deduction from Salary:-
1. Taxes as applicable (TDS, Professional Tax etc.) – Professional Tax Applicable in below States

Andhra Pradesh Kerala Orissa West Bengal Karnataka

Assam Madhya Pradesh Puducherry Meghalaya

Bihar Maharashtra Tamil Nadu Gujarat

Chhattisgarh Manipur Tripura Mizoram

2. PF
3. ESI
4. Monthly Employee Advance/ Loan recovery
5. CUG mobile connection amount Excess of employee limit
6. Advance given to employee for incurring the official expenses and employee does not
submitted the bills within timeline defined
7. Employee having company Car – Personal Expenses as per policy defined
8. Amount paid in excess of Policy (Conveyance/Tour, if not approved)

Salary Slip:-
HR department will send Salary Slip to employee on monthly basis after payment of salary. Salary
slip will be sent on employee’s official Mail ID. This should be an encrypted PDF file.
Audit Controls:-
1. The joining document for new employee is audited by Audit team and no payment will be
released to new employee till the time audit of his/her documents is not completed.
2. List of branches/offices having Non-Biometric machines and employees having problem due
to finger print will be checked by audit dept. on monthly basis.
 3. Editing of employee data in Payroll software will be effective only after sharing the
respective/ concerned approvals with the audit team as there is restricted access for editing
the employee data.
4. Monthly Salary of employees and the account in which it is to be credited will be checked by
Audit team before processing the same. In case bank account no. is different from last month
then the auditor verifies the same from the cancelled cheque.

Payment of Stability Allowance:-

Stability Bonus & Full and Final payment will be paid as per below table:-
Nature Payment Date Due Period
Stability Allowance As and when it becomes Calculated as per joining date
due

Responsibility Matrix:-
Process Department 1st Level Responsibility 2nd Level Responsibility

Attendance Process HR HR Team – Payroll team Rohit Solanki

Salary Processing HR HR Team – Payroll team Rohit Solanki

Advance Adjustment HR HR Team – Payroll team Rohit Solanki

Monthly Salary Calculation HR HR Team – Payroll team Rohit Solanki

after adjustments

Salary Audit Audit Audit Team Yogesh Soni

Salary Payment Accounts Kamlesh Tak/ Pankaj Ramjilal

Mohata

Salary Slip HR HR Team – Payroll team Rohit Solanki

Employee Query Resolution HR HR Team – Payroll team Rohit Solanki