Terms A to Z
| Term | Meaning |
|---|---|
| Arrears | Pay for past months owed because a revision or correction was applied late. Taxed in the year it is paid. |
| Basic + DA | Basic pay plus dearness allowance: the core of “wages” under the Labour Codes, and the base for PF, gratuity and minimum-wage checks. |
| CTC (cost to company) | Everything the employer spends on an employee in a year: gross salary plus the employer’s PF, ESI, gratuity provision, insurance and other benefits. |
| ECR | Electronic Challan cum Return: the monthly PF return and payment on the EPFO portal. |
| EDLI | Employees’ Deposit Linked Insurance: the life cover attached to PF, paid for by the employer at 0.5% of PF wages. |
| EPS | Employees’ Pension Scheme: the 8.33% of the employer’s PF share that goes to the pension fund, on wages up to the ceiling. |
| F&F | Full and final settlement: everything owed to and by an employee on leaving. Due within two working days. |
| Fixed-term employment | Employment for a set period on the same terms as permanent staff; gratuity after one year. |
| Floor wage | The national minimum the Centre sets, below which no state minimum wage may be fixed. |
| Form 124 | The employee’s declaration of tax-saving claims (was Form 12BB). |
| Form 130 | The annual certificate of TDS on salary given to each employee (was Form 16). |
| Form 138 | The quarterly return of TDS on salary (was Form 24Q). |
| Gross salary | Total monthly earnings before deductions: basic, DA, HRA and other allowances. |
| Gratuity | A lump sum on leaving after five years (one for fixed-term staff): 15 days’ wages per year of service, up to ₹20 lakh. |
| IP number | Insurance number of an employee registered under ESI. |
| LOP / LWP | Loss of pay / leave without pay: days not paid for because the employee was absent without leave available. |
| LWF | Labour welfare fund: a small state levy, from employee and employer, in the states that have one. |
| Net pay | What reaches the employee’s bank account: gross salary less deductions. |
| New / old regime | The two ways of computing income tax. The new regime is the default, with lower rates and few deductions. |
| PT | Professional tax: a state tax on employment, at most ₹2,500 a year. |
| Regularisation | Correcting a day’s attendance — a missed punch, work outside the office — through an approved request. |
| Section 392 | The section of the Income-tax Act, 2025 on TDS from salary (was section 192). |
| UAN | Universal Account Number: an employee’s single PF identity across employers. |
| VDA | Variable dearness allowance: the part of a minimum wage revised with prices, usually each April and October. |
| VPF | Voluntary provident fund: extra PF the employee chooses to contribute, which can now be changed at any time. |
| Wages (Labour Codes) | Basic + DA + retaining allowance, with excluded allowances above 50% of pay added back. |
Related
Plain-language guidance for HR teams, not legal advice. Checked against the sources above on 29 September 2026; the notification or your authority’s portal is final. Spotted something out of date? Tell us.