Hi guys,
My name is Sunil and I just joined a new organization. To my surprise, on the salary day, I received an email from our HR department that due to delay in payments by the clients towards our company, the salary will be processed 1 week later than the scheduled date.
This is completely new to me. I had worked for 8 years previous to this and never faced salary delays, at leased never due to above-cited reason.
Now I want to ask you guys is it normal process and I should not be worried about anything. In my opinion, any organization must have reserve funds to pay the salary of their employees in such circumstances. For me, it rings an alarm bell that my company cannot pay me because its clients are delaying payments.
Please help.
Thanks in advance.

From India, Delhi
Hr Manager
Center Head
Licensing Of All Acts Across Pan India &
Production/quality/ind. Engg/ppc
Senior Hr & Payroll Execuvite
+7 Others

The bottom line is that the company does not have reserve funds to take care of such issues. You would need to review your options as this is a clear warning bell on how the company is being run.
If you find a better option, go for it.
At the end of the day, the company should realize that you also have bills to pay. Try and find out the track record...does this happen often with your company...
A delay in client payment is no reason...any professional company would have at least 3 months reserve to take care of all eventualities.

From India, Mumbai

Hi Sunil,

Payment of salary is purely based on availability of cash flow. Eventhough salary is to be paid by 7th (or 10th in some cases) many organisations because of inadequate cash flow, delay the payment of salary. In my previous organisation they had a system of staggered payment i.e lower level staff will get the salary first on 07 th and the managers the last but no fixed time frame. I used to get the salary between 15th and 20th every month as I was in Managerial cadre. I never felt it as an issue. I adjusted my personal expenditure cycle such that I was able to manage even if salary is delayed. Don't look this as an issue. If the organisation is good and if you feel happy to work in the organisation, think twice before you quit. Afterall salary is not the only criteria to work in the organisation. More than salary, professionalism, culture, growth opportunities, job satisfaction, good team members etc, are vital. If you are happy on all these aspects, then i suggest try to adjust your personal monthly expenditure cycle so that you are able to manage even if salary is paid late. As correctly said by one my friend, employees are not paid for 6 months. Think of their plight. One my friend was not paid for 6 months and he never disclosed to his wife and he managed with his personal things.


From India, Bangalore
R. Madan

Hi Bhavan
This is not adjustment but to compromise with the situation and more over it could not go lasting. If some one is working in an organisation and regularly attending his duties then this is organisation's duty to pay his salary on time despite that fund flow is there or not.
This is not a gud sign that due to non-availability of funds, salary could not be released. Think if banks act like this that today no money has been deposited hence we can't allow any withdrawal or we are unable to operate ATM.
Every organisation has some emergency funds to cater day to day operation.

From India, Bangalore

Try to find out the reason for deley of clearence of the invoice from the client . Now you are also a part of the orgnisation so it is also your duty too make the company in profit .if you are thinking you are notihng to do with the profit or loss of the company .. . your salery your company will never able to pay salery in time .
pankaj painuly

From India, Delhi
Soujanya Hegde

Hi Sunil
I do agree with Bhavan. With the mentioned situation,you have to compromise if you think that you are working into your dreamed profile. Everyone is not blessed with their desired profile and responsibilities. If you take my example, i am working as an Executive-Hr for an IT company where even i faced the same problem for last 3 months. But still i am not looking for other options because i am most happy with my Job. With hardly 8 months work experience after my PG in HRM, i am working on a Generalist role which is a desired role for most of the HR Professionals.
I suggest you, just sit behind and decide for what exactly you are into that particular Job. If it is Salary then immediately go for other opportunity and if it is Profile or any other things then concentrate on what you need to do.
Soujanya Hegde

From India, Bangalore
Hi Mr. Sunil
In India,70- 80% of the companies are paying like this only. You should be happy that you are getting salary within 10 - 15 days. In lot of cases, salaries are paid in piecemeal after 3 - 4 months.

From India, Madras

Dear Swaminathan,
Pls don't say that in India 70%-80% of the companies are paying like this .When an organization couldn't pay the salary at time wat growth you can expect from that company.It's completely the chairman look out of payment's .
Do you think when they make profit's they share with you never ,then on wat basis an employee has to sacrifice for all this stuff,each & every individual have there own Commitment & prbl'm ,at the end of the day if ur not paid imagine how you & me feel in this situation.
Am really sorry if any thing is wrong in my statement ,This is my view on the subject.
Good to know you

From India, Mumbai
Hi Sunil,
You have not mentioned whether it is MNC or NC , In General MNC companies will not do as you said , where as NC companies are likely to do as per their convenient, and no law is there in india to check these NCs.
So better dont be panic , and be cool take it as it comes, since we are in india an under developed/developing country.

From India

Yes i agree with Bhavan.
Basically you have to decide your priorities. If salary, then start looking for other job.
Apart from salary day issue, if the other parameters suits your requirement, you can manage that at your own.

From India, Gurgaon

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