What to Keep in Your Employee Master File (and What Not To)

An employee master is the single list of everyone who works for you and the key facts about their job. Payroll, compliance, appraisals and exits all depend on it being right.

Fields every record needs

• Identity: employee ID, full name, gender, date of birth
• Job: department, designation, grade, reporting manager, location, employment type
• Dates: joining date, probation end, confirmation date, exit date
• Contact: mobile and work email
• Statutory: UAN for PF, ESIC number where applicable, PAN for tax
• Pay: annual CTC (detailed salary structure belongs in payroll)
• Status: active, notice period or exited

What not to keep in a shared sheet

Data protection law in India expects you to collect only what you need and protect it. Avoid:

• Full Aadhaar numbers (keep the last four digits if needed)
• Bank login details or card numbers
• Medical details beyond what the law requires

Restrict access to HR and named managers, and remove access when people change roles.

Dates that create obligations

• Probation end: confirm, extend or end in writing before the date
• 5 years of service: gratuity generally becomes payable on exit after 5 years of continuous service
• Exit date: full and final settlement and PF exit updates follow

Simple HR numbers worth tracking

1. Headcount by department and location
2. Attrition: people who left this year ÷ average headcount (a simple version: left ÷ (current + left))
3. Average tenure: how long people stay
4. Joiners vs exits each month
5. Gender mix and people on probation

Small gestures that matter

Birthdays and work anniversaries cost nothing to remember and mean a lot to employees. A monthly list from the master makes it easy.

Keep it current

Update the master the same day someone joins, changes role or resigns. A monthly 15-minute check against payroll catches mismatches.

Common mistakes

1. Two different spellings of the same name across payroll and HR records
2. Joining dates that don't match the appointment letter
3. Exited employees still marked active, which inflates headcount
4. Personal phone numbers shared widely in a team sheet
A quick monthly match between the master and payroll catches most of these.

Our Employee Database & HR Master Sheet holds every employee's details with probation, gratuity, birthday and anniversary alerts and a headcount and attrition dashboard.