How to Keep Track of Labour Accounts on Construction Sites

Every contractor struggles with labour accounts. Tracking who came to work, who took an advance, who did overtime, and calculating what each worker is owed at month end becomes chaotic with 20-50 workers. When records are unclear, disputes are inevitable.

This guide covers a systematic approach to keeping clean labour accounts on construction sites.

Five Things You Must Track

1. Daily Attendance

The foundation of all labour accounting. Record daily whether each worker was present, absent, worked a half day, or did overtime. Use a hajri app to mark attendance in 2-3 minutes daily instead of 15-20 minutes with paper.

2. Wage Rates

Every worker should have a documented daily rate agreed upon at hiring. Rates must meet or exceed state minimum wages. Keep rates updated when they change.

3. Advance Payments

The biggest source of disputes. Workers request mid-month advances and contractors forget to record them. Record every advance immediately — amount, date, worker name, and get a signature.

4. Overtime

Track extra hours daily, not at month end. Normal hours are 8 per day. Overtime typically pays 1.5x to 2x the normal rate. Mark OT in your attendance app on the same day.

5. Deductions

Salary deductions include: advances taken, PF (12% if 20+ workers), ESI (0.75% if salary under Rs. 21,000), and any other agreed deductions.

Setting Up Your System

Step 1: Create a worker master list with name, phone, skill type, daily rate, and joining date. This is a one-time setup in Yojo.

Step 2: Mark attendance daily at a fixed time. Consistency matters more than the method.

Step 3: Record advances instantly. Do not wait even one hour. The moment you hand over money, note it.

Step 4: Do a weekly review. Every Sunday, spend 5 minutes checking average attendance, total advances given, and any pending overtime calculations.

Step 5: Monthly settlement. Calculate total working days, gross salary (days x rate), add overtime, subtract advances and deductions, arrive at net payable, generate a pagar slip, get worker signatures, and make payment.

Solving Common Problems

"I forgot how much advance I gave" — Record advances the moment you give them. Set a phone reminder if needed.

"Worker says 24 days, my record says 21" — Daily digital attendance with timestamps and GPS eliminates this dispute entirely.

"Multiple sites, accounts mix up" — Track each site separately. Yojo supports multiple sites with individual attendance and payment tracking.

"Worker left mid-month" — Settle on the same day. Calculate attendance, subtract advances, pay the balance, get a signature, and provide a wage slip.

Digital vs. Paper Tracking

Aspect	Paper Diary	Digital App
Daily effort	10-15 min	2-3 min
Monthly calculation	2-3 hours	5 min (auto)
Advance tracking	Risk of forgetting	Auto-deduct
Backup	None	Cloud
Multi-site	Separate diaries	One app
Proof value	Weak	Timestamped + GPS

Best Practices

• Do today's work today — mark attendance, note advances, and log overtime the same day
• Go digital — a phone app replaces diaries, calculators, and spreadsheets
• Give workers transparency — show them their attendance count and deductions before payment
• Keep payment proof — UPI and bank transfers create automatic records; for cash, get signed receipts
• Back up everything — if using paper, photograph your register weekly

Get Started

Yojo acts as your digital accountant for labour management. Attendance, advances, overtime, muster rolls, and pagar slips — all in one app, all from your phone. Download it free and bring order to your labour accounts starting today.