HRMS Software for Manufacturing Companies
Shifts, overtime and factory compliance, handled.
Manufacturing organizations need HR software that can handle shift-based workforces, multiple locations, attendance, overtime, payroll, employee records and statutory compliance. NeevHR brings these processes together in one HRMS.
HR for manufacturing, in practice
A plant runs on rotating shifts, a large blue-collar workforce and biometric terminals at every gate. The HR problem is rarely the policy itself; it is turning thousands of punches into correct overtime, shift allowances and LOP before payroll closes.
NeevHR ingests punches from biometric devices, applies each shift's grace, break and overtime rules, and closes the attendance day so payroll receives numbers it can use. PF, ESI, PT and LWF are then calculated per worker, per location.
Relevant NeevHR features
- Shift management
- Roster management
- Biometric attendance
- Overtime
- Leave
- Payroll
- Worker records
- Multiple locations
- Employee documents
- Compliance
- Reports
- Employee self-service
The HR challenges of manufacturing
Rotating and night shifts across plants and lines
Biometric attendance for a large shop-floor workforce
Overtime and shift allowances that must reach payroll accurately
ESI coverage that changes as gross pay moves around ₹21,000
PF, ESI, PT and LWF across multiple state locations
Factory compliance under the Labour Codes
Since 21 November 2025 factories are governed by the OSH Code, 2020 (which replaced the Factories Act, 1948 and the Contract Labour Act, 1970), the Code on Wages, 2019 and the Code on Social Security, 2020. Labour is a concurrent subject, so the details below depend on the rules your state has notified; confirm them for each location.
| Rule | What it means for HR and payroll |
|---|---|
| Factory definition | 20 or more workers with power, or 40 without (earlier 10 and 20) |
| Working hours | Not more than 8 hours a day; weekly limits and spread-over as your state notifies |
| Overtime | Twice the ordinary rate of wages, with the worker's consent, within a quarterly cap in state rules |
| Annual leave | One day for every 20 days worked, after 180 days of work in a calendar year |
| Contract labour | OSH Code provisions apply at 50 or more contract workers (earlier 20); the principal employer stays liable |
| Women at night | Permitted with consent and the safety conditions the government prescribes |
| Minimum wages | State rates by skill and area, revised with dearness allowance, never below the central floor wage |
| Appointment letters and health checks | An appointment letter for every worker, and a free annual health check-up at the age prescribed |
Contract labour and the principal employer
Most plants run on a mix of permanent and contract workers. Under the OSH Code a contractor supplying 50 or more contract workers needs a licence, and the principal employer must make sure wages are paid on time and that PF and ESI are deposited for contract workers; if the contractor defaults, the principal employer pays and recovers from the contractor.
In practice that means keeping the contractor's registrations, monthly challans and wage registers on file and checking them before releasing the contractor's invoice. Our contract labour checklist covers each document.
Overtime at twice the ordinary rate
For workers under the OSH Code, overtime is paid at twice the ordinary rate of wages and needs the worker's consent. The ordinary hourly rate is usually the month's wages divided by the working days and the daily hours your policy uses. States also notify a cap on total overtime in a quarter, so the roster has to watch cumulative hours, not only the day. Use the overtime calculator to check a figure.
Night shifts for women
Women may work night shifts with their consent and the conditions the government prescribes, typically safe transport, security and adequate numbers on the shift. See night shift rules for women employees.
Minimum wages by zone and skill
Minimum wages are set by the state, by skill level (unskilled, semi-skilled, skilled, highly skilled) and area, and most states revise the dearness allowance twice a year. A structure that is compliant in March can fall below the floor after an April or October revision. See minimum wages in India and the state payroll guides.
Worked example: one shop-floor worker's month (illustrative)
- Monthly wages ₹18,200, with 26 working days and an 8-hour day: daily rate ₹700, ordinary hourly rate ₹87.50
- Overtime: 10 approved hours at twice the rate, 10 × ₹175 = ₹1,750
- Gross for the month: ₹18,200 + ₹1,750 = ₹19,950, within the ₹21,000 ESI limit
- ESI employee share: 0.75% of ₹19,950 = ₹149.63, rounded up to ₹150; employer share 3.25% = ₹648.38, rounded up to ₹649
- PF: 12% of PF wages; overtime allowance is not part of wages for PF under the Code's definition
Figures are illustrative. The hourly divisor, rounding and the wage components that count for PF follow your policy and the Codes; confirm the overtime cap and minimum wage for your state.
Configured for manufacturing, out of one platform
Manufacturing: HRMS questions
Can NeevHR take punches from our existing biometric machines?
NeevHR accepts punches over the ADMS (iClock) push protocol used by many eSSL, ZKTeco and Matrix devices, and through punch file import. We confirm your device models during implementation.
How is overtime calculated?
Overtime rates are configured by day type (working day, weekly off, holiday), with grade multipliers and daily caps. Approved overtime is paid through payroll.
Can we run different shift rules for different plants?
Yes. Shifts, rosters, weekly-off policies and attendance rules are assigned to employee groups, so each plant or line can have its own rules.
See NeevHR for manufacturing
A walkthrough mapped to how your teams actually work.