Recovery Of Excess Salary Paid To An Employee

Dear friends,
I wanted to know if by mistake an employee is paid extra in the last payroll (eg he has been paid for 30 days when he was present only for 29), then how do we show the reversal of that surplus paid in the next salary slip considering that there has been an increment starting from the current month i.e after the last salary paid to him.
Under what salary component should it be reflected and how?
Regards,
Nitin

Dear Nitin,
Option One:
Need to pay him salary for 29 days @ new rate & Difference of salary for One day.(Diff is paid becoz of increment)
If increment is not there you can staright away pay 20 days salary
Diff paid cab be given as :Salary arrear ,as all other components are at new rate.
Option Two:
You could pay for 30 days in current month and recover one dya extra pay.
Salary slip ,that amount would appear as'Salary Advance'
Regards,
Shobha

Dear NITIN,
There are many things to be taken under consideration while deducting an amount from the monthly payroll, even if there has been clerical error. The first thing is that Director HR is to be informed of such error as such deduction can lead to lower morale of the concerned employee and hence should be avoided as such meagre amount collection shall be penny wise and Pound foolish. It is not the money that is important for the Company but the morale. Past is to be forgotten and to learn not to repeat mistake in future. A mistake is a mistake and all mistakes cannot be reparated.
If anyhow deduction cannot be avoided, you got to inform the employee in writing about the same and take authorization from him towards the same. (Maybe he cannot afford to payback during this month and wants it to be postponed).

Dear Aby
Thanks for your point of view. I appreciate that you brought it my notice.
Maybe other members will have something more to say on your thoughts based on their experience.
Cheers,
Nitin

hi,
calculate actual salary for 29 days . you have paid for 30 day. the diff you can recover under the head advance salary in the subsequent month after calculating his actual salary for the incremental month.
importantly you need to communicate to concern employee that this was an error take him in confidence.
regards
jitendra

Hi,
Pay salary for 30 days for the month from which there is salary revision.
Calculate one day pay and recover from his salary under some heading. (eg. Salary advance, other deductions etc.). Try to do both in the same month and don't drag it.
If at all the recovery amt comes more than his affordability you can give him the option of recoverying it in two or three instalments.
But, pls ensure that this should be kept informed to the concerned employee and we should be more careful in calculating for future. Because, if you pay low immediately the affected employee will come and ask you, but if your pay excess nobody will report to you.
pls ensure that you keep it updated with your immediate boss, becoz, if there is anything in handling this issue, he may help you out.
mangai

I had been paid excess salary by my employer since last six years, now they are trying to recover the same, how can i fight with my employer, they given me promotion... on 16.02.2003.
Please guide how can i fight with my employer... whether any court judgement is available for prevent me

I would like to ask if the employer is entitled to retrieve excess incentive to employees if it is a mistake of their HR Compensation and benefits division. The company is threatening to put dishonesty on their 201 file wherein it is not their fault that such mistake happen. The employees is willing to give back the money given that the company would agree for a salary deduction. Is it really possible to indicate it as dishonesty when in reallity it is not the employees fault?