Arrears
Finalized payroll results never change. When something that affects a month already paid changes, the next regular run works out the difference and pays it as arrears.
What triggers arrears
- A salary revision approved with an effective date in a month that's already closed.
- Attendance or leave changing for a closed month, for example an approved regularization that removes a day of LOP.
- A joiner who was left out by the joiner cut-off, paid in the next run.
How they're calculated
For each affected employee, the run recalculates up to 12 closed periods with the new information and pays the difference against what was already paid, including earlier arrears.
The employee is flagged Arrears paid in the run, and the Pay component summary report shows how much of each component was arrears.
Example
An employee earns 30,000 a month. In June, an increment to 33,000 effective 1 April is approved.
| Run | Pays |
|---|---|
| April and May (already finalized) | 30,000 each |
| June | 33,000 for June, plus arrears of 3,000 × 2 = 6,000 for April and May |
If net pay goes negative
If recovering a difference makes the employee's net pay negative, nothing negative is paid; the shortfall is recovered through the recovery component in a later run. See Processing rules.