A payroll policy covers all aspects of paying a salary to an employee and ensuring statutory compliance while doing so.
Strict adherence to this policy will ensure employee satisfaction, the right documentation and statutory compliances. In the absence of proper definitions and procedures, there are possibilities of payroll errors leading to employee dissatisfaction and labor law violations.
Employees need to have clarity about the payroll policy and how they will be paid. A lack of clarity will lead to lots of HR queries, lack of transparency and bad feelings.
A payroll policy includes: