Pay Period
Definition
The recurring span of time over which employee pay is calculated — weekly, fortnightly, semi-monthly or monthly. It sets the cadence of payroll runs and affects how annual amounts are prorated.
Related Terms in Payroll
Payslip
A statement given to an employee each pay period detailing gross pay, individual deductions, and net pay, along with year-to-date totals. Many jurisdictions require employers to provide one.
Provident Fund (EPF)
A retirement savings scheme in India where both employee and employer contribute a percentage of basic wages to the Employees' Provident Fund. The accumulated balance, with interest, is paid out on retirement or exit.
Employees' State Insurance (ESI)
An Indian social-security scheme providing medical and cash benefits to employees earning below a wage threshold, funded by employee and employer contributions on gross wages.
Gratuity
A lump-sum payment made by an Indian employer to an employee who has completed a minimum period of continuous service, calculated on last-drawn salary and years of service, payable on retirement or exit.
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